S&P downgraded Coinbase's rating to BB- due to a decline in trading volume and regulatory risks

2023-01-12 08:19:12

Collection

ChainCatcher news, the world's largest rating agency S&P Global Ratings has downgraded its long-term credit rating and preferred unsecured debt rating for Coinbase (COIN) from BB to BB-, citing a decline in trading volume and regulatory risks that have led to decreased profitability for the exchange.

S&P stated that the bankruptcy of FTX last November severely impacted the credibility of the crypto industry, resulting in decreased retail participation. Consequently, trading volumes for exchanges, including Coinbase, have significantly dropped. Most of Coinbase's revenue comes from retail trading fees, and S&P expects the exchange's profitability to "remain under pressure" in 2023, indicating that the company's adjusted EBITDA this year may be very small. Coinbase stated last November that due to the decline in trading volume, its revenue for the third quarter of 2022 fell by 44% compared to the second quarter. (source link)

Related tags

Coinbase S&P rating

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.