Crypto exchange Coinbase’s overall trading volume declined by about 44 percent in the first quarter of this year. Commenting on the quarterly results, the head of the exchange Brian Armstrong said trading volume between January and March stood at $309 billion, which is significantly lower than the trading volume of about $547 billion in the fourth quarter of last year. Coinbase had set a revenue target of $1.5 billion for the first quarter, but in comparison, it managed to achieve only $1.17 billion.
Armstrong, who was on a recent visit to India, announced the closure of a feature on Coinbase’s platform. reason Told also. The exchange announced last month that users in India will be able to buy crypto assets using UPI for digital payments. However, this feature was not approved by the government. Because of this, it had to be turned off on Coinbase’s app. “There was pressure from the Reserve Bank of India (RBI) not to use UPI. That’s why we closed it,” Armstrong said.
As per the recent data, the exchange has around 9.2 million Monthly Transacting Users (MTU) on the platform. This number was around 114 million users in the fourth quarter of last year. As a result, Coinbase’s trading volume, revenue and MTU targets have not been met. Coindesk has a Report I told that the exchange plans to expand abroad. However, it is expected to reduce the number of users and trading volume further in the second quarter.
Coinbase says, “We are trying to move forward in markets with uncertainties. We have nearly a decade of experience and will continue to learn from it and invest in driving growth over the long term. The exchange is expected to see potential adjusted EBITDA this year. Losses are expected to rise to around $500 million. EBITDA means profit before interest, tax, depreciation and amortization. Coinbase is also planning to expand its business in India, the exchange says.