It has been a challenging year for the cryptocurrency market. The crypto market has lost more than $1.4 trillion in value this year as the rising interest rate environment and recession fears kept investors away from highly risky assets. Two of the biggest cryptocurrencies…
bitcoin and Ethereum, have fallen more than 63% year-to-date.
The impact of the collapse of the crypto exchange FTX has further dampened investor sentiment about cryptocurrency, dragging down major digital currencies. FTX’s $32 billion valuation went up in smoke as the company’s liquidity dried up, and it filed for bankruptcy.
Once valued at roughly $3 trillion, the crypto market now sits at around $900 billion. Consequently, companies have cut advertising expenses, with top crypto advertisers spending just $35 million on ads in the third quarter of this year, an 80% drop from the first quarter, according to MediaRadar.
Although the Fed Chairman indicated slowing the pace of rate increases, the prospects of a recession next year are still high. Investors’ risk-off approach could put further pressure on the cryptocurrency market.
Thus, it could be wise to steer clear of fundamentally weak crypto-exposed stocks Coinbase Global, Inc. (COIN), Robinhood Markets, Inc. (HOOD), Riot Blockchain, Inc. (RIOT), and Marathon Digital Holdings, Inc. (MARA).
Coinbase Global, Inc. (COIN)
COIN provides financial infrastructure and technology for the crypto economy worldwide. The company offers the primary financial account in the crypto economy for retailers; and technology and services that enable ecosystem partners to build crypto-based applications and securely accept crypto assets as payment.
For the fiscal third quarter ended September 30, 2022, COIN’s total revenue declined 55% year-over-year to $590.34 million. The company’s net loss attributable to common shareholders came in at $544.63 million, compared to a net income attributable to common shareholders of $405.34 million in the year-ago period.
Its adjusted EBITDA loss came in at $115.89 million, compared to an adjusted EBITDA of $618.22 million in the prior-year quarter. Additionally, its loss per share came in at $2.43, compared to an EPS of $1.62 in the year-ago period.
Analysts expect…
Continue reading at STOCKNEWS.com
