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Coinbase cut costs and bolstered rep, but profits remain challenged: Analysts

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Coinbase cut costs and bolstered rep, but profits remain challenged: Analysts

Cryptocurrency exchange Coinbase won’t escape from the profitability challenges it will face from the crypto market downturn, despite having a strong brand and credibility in the crypto market, according to investment analysts.

Credit rating firm Moody’s released a note on Coinbase on Jan. 19 discussing its downgrade of Coinbase’s senior debt and corporate family rating (CFR) — a rating assigned to reflect the opinion of a company’s ability to honor its financial obligations.

Coinbase’s CFR and senior debt were re-graded to B2 and B1 from Ba3 and Ba2 respectively, indicating the firm is “non-investment grade” and “speculative and subject to high credit risk” according to Moody’s.

The firm noted that Coinbase is suffering from “substantially weakened revenue and cash flow generation” due to “challenging conditions,” specifically depressed crypto prices and lower trading activity.

The market conditions saw Coinbase lay off 20% of its employees, around 950 people, on Jan. 10, its second wave of recent major layoffs following its June 2022 18% headcount slash in a bid to cut cos

Coinbase CEO Brian Armstrong at a conference in 2018. In the most recent round of layoffs, he said the firm needed “the appropriate operational efficiency to weather downturns in the crypto market.” Image: Flickr

However, despite Coinbase’s bid to preserve liquidity, Moody’s still expected “the company’s profitability to remain challenged.”

The bankruptcy of its crypto exchange peer, FTX, is a cause for heightened concern and uncertainty regarding crypto regulation according to Moody’s.

It said a sudden move by regulators in the crypto industry could negatively impact Coinbase’s revenue through increased costs of regulatory compliance.

Moody’s added, however, that increased oversight “could ultimately favor the relatively more mature and compliant crypto-asset platforms such as Coinbase.”

Meanwhile, a separate note from analysts at JPMorgan argued that Coinbase’s credibility and reputation in the industry have strengthened after recent collapses.

“While the crypto-ecosystem has suffered further meaningful credibility issues, Coinbase has emerged with its credibility and brand strengthened — at least relatively.”

The financial firm’s analysts which maintained a rating of “neutral” for Coinbase in its latest note said Coinbase could even be a “beneficiary of the challenges” other exchanges have faced in the wake of FTX.

The upcoming Shanghai hard fork for the Ethereum blockchain could also be a positive for the exchange according to JPMorgan’s analysts.

Related: Coinbase stops Japan operations amid trading slump

The upgrade “could usher in a new era of staking for Coinbase” with analysts estimating 95% of retail investors on the platform may stake Ethereum post-upgrade, netting Coinbase up to nearly $600 million a year.

On Jan. 6 the Coinbase share price hit an all-time low of $31.95 after over a year of constant price declines according to Yahoo Finance data. The day prior, veteran investor and ARK Invest CEO, Cathie Wood, loaded up on $5.7 million worth of Coinbase shares.

Since then the share price of Coinbase and other crypto-related companies have surged.

Coinbase gained 72.6% since the Jan. 6 low and traded at over $55 at the close of market on Jan. 20, where it saw an 11.6% gain on the day.


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How to Give Bitcoin or Another Cryptocurrency as a Gift Using BitCard – Press release Bitcoin News

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How to Give Bitcoin or Another Cryptocurrency as a Gift Using BitCard – Press release Bitcoin News

PRESS RELEASE. As Bitcoin and crypto grows in its appeal and global use by individuals, businesses and merchants from all places and corners of the world, the desire for them also increases. Now, perhaps more than any other time in history, digital currencies like BTC, ETH and others, are in demand.

The internet has been actively progressing into underlying web 3 standards, and digital assets are increasingly utilized as the underlying money employed by various virtual platforms. The news and media are reporting about crypto more, people are becoming more aware, and therefore interest in crypto seems to be brewing, even as regulatory standards are being formed real-time.

As People Gain Understanding, Crypto Gains Further Adoption

As with all new concepts, as public education and awareness of cryptocurrencies steadily increases, fear and uncertainty around crypto is being settled for many. As a result, more people are becoming willing to interact with cryptocurrencies for their utility within digital ecosystems, trading, investing, alternative payment processing and more.

As more people and businesses begin using crypto themselves, they are also beginning to share them at a greater rate with others. Bitcoin gift cards have arisen as a popular method of sharing BTC and other popular cryptocurrencies with friends, family, co-workers, clients, staff and others.

Why Bitcoin Gift Cards Are Growing In Popularity

BTC gift cards have increased in their draw and popularity since first reaching the market in the early 2010’s. Now, with more than a decade on the market, gift cards with denominations redeemable in BTC, ETH, and even stablecoins like USDC others, the overall proposition has been implemented, and furthermore developed, by platforms like BitCard®.

BitCard® is a US-based BTC gift card distributor and B2B supplier that gives the end user several ways to take advantage of BTC gift cards for themselves personally, or to gift others individually, or even in an effort to build or expand existing loyalty and rewards programs. Over the last decade-plus several companies have looked for ways to implement gift cards purchased and furnished with digital assets to satisfy the desire many have to gift with alternative means than other traditional methods.

Additional Ways To Gift With Bitcoin And Cryptocurrency

While it isn’t very attractive in terms of the packaging, people can always elect to send cryptocurrency directly to others they wish to gift as an alternative to putting the crypto in gift card form. While it isn’t the most sophisticated way of giving, the desire to produce a gift that one has genuine interest in would be accomplished by such means.

In addition to sending BTC or other cryptos directly, crypto could also be put into other forms in order to accomplish the goal. NFTs and other on-chain digital assets can sometimes be relatively less-impacted by the volatility typically associated with the cryptocurrency market in general. This means that as Bitcoin price fluctuates, or any other associated digital asset, the value of the gift could remain at or near the original dollar value of the intended gift – or in some cases, increase.

Although it involves the same method of gifting with gift cards, some platforms such as BitCard® enable the end user to not only gift in physical cards but also digitally produced Bitcoin gift cards as well. While the effect may be different, particulars such as borderless, global and near-instant transmission could prove to be immensely beneficial in some instances.

More Than Gifting

Not only can crypto be loaded onto gift cards, but BTC and additional cryptocurrencies can also be implemented in customer loyalty, employee incentives, and other rewards programs. Even in this form, crypto could still be seen as a gift, as it is given to individuals, customers, clients or others as a reward, bonus, or incentive.

As cryptocurrency continues to be used on a global scale at an increased rate by businesses and individuals throughout the world, perhaps even more methods of gifting will be developed and one day become mainstream gifting alternatives. For now, crypto and BTC gift cards, crypto itself, crypto converted into other forms, and rewards, loyalties and incentives are the most popular ways to give the gift of crypto for most.

 

 

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Polygon Derivatives DEX Gains Network Crosses $1.5B in Trading Volume on Arbitrum

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Polygon Derivatives DEX Gains Network Crosses $1.5B in Trading Volume on Arbitrum


Over $220 million in trading volume was processed in the past 24 hours. Over $120 million of that came from crypto derivatives and $70 million from products tracking foreign currency (forex), with the remaining spread over US-listed stocks, such as Apple (APPL) and Amazon (AMZN), and indices.


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State senator pushes bill to make Bitcoin legal tender in Arizona

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State senator pushes bill to make Bitcoin legal tender in Arizona


Wendy Rogers, an Arizona state senator in the United States, has launched bills concerning cryptocurrency, including one that aims to make Bitcoin (BTC) legal tender in Arizona. 

In a recent tweet, Rogers cited data from investment firm Goldman Sachs that BTC is the best-performing asset in the world and announced that she launched a set of crypto bills.

One of the proposed bills focuses on making BTC legal tender in the U.S. state. If passed into law, BTC will have the same status as the U.S. dollar, becoming an accepted medium of exchange for debt payment, public charges, taxes and dues in the state. 

In 2022, the state senator also introduced a similar bill without success. Despite this, Rogers still continues efforts to push BTC forward in the state. In April 2022, Rogers spoke against central banks and voiced her support for Bitcoin. She tweeted:

Apart from this, Rogers also participated in introducing a bill that seeks to make crypto a tax-exempt property. If approved, voters can decide in 2024 if they want tokens that do not represent foreign currencies or the U.S. dollar to be exempt from taxes. 

Related: US Senator Ted Cruz pushes for crypto in Congress … using snacks

On Sept. 7, 2021, El Salvador officially made Bitcoin a legal tender in the country. More than a year later, making Bitcoin legal tender in the country proved beneficial. El Salvador experienced increased tourism in 2022, with 1.1 million people visiting the country in the first half of the year.

On Jan. 22, Brazil and Argentina announced preparations to create a common currency parallel to the Brazilian real and the Argentine peso. Responding to this, Coinbase CEO Brian Armstrong suggested that moving to Bitcoin may be the right “long-term bet” for both countries.


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