Why the Simple Bull Thesis Behind Coinbase Was Wrong
All of a sudden, it seems, everything is going wrong for Coinbase Global (NASDAQ: COIN).
Shares of the cryptocurrency trading exchange have fallen 85% from their peak last November as cryptocurrency prices have plunged and interest in blockchain-based tokens has dried up.
Adding insult to injury, Coinbase announced that it would lay off 18% of its staff this week as the company failed to anticipate that interest in crypto could cool after an unprecedented surge in 2021. Chief Executive Officer Brian Armstrong explained in a June 14 blog post: "In past crypto winters, trading revenue (our largest revenue source) has declined significantly. While it's hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment."
Source Fool.com
