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The United States’ largest crypto currency exchange platform, Coinbase, announced its third quarter earnings, which show a decline in the profits. Due to weak market conditions and lawsuits filed against Coinbase, revenue fell to $576.4 million (USD), a decrease of 28% from second quarter earnings. Its net loss was reduced to $544.6 million (USD).
Meanwhile, its staking and custody service has reported 43% growth compared to the second quarter. In the previous quarter, Coinbase promised the shareholders that the entity would improve its staking mechanism on the platform. Recently, Coinbase launched a liquid staked token called Coinbase wrapped Ethereum (CBETH). In March, Coinbase raised its support for Cardano stake.
Staking is a process that helps the long term crypto holders to earn rewards for holding certain types of digital currencies. For staking the cryptocurrencies, they utilize consensus mechanisms, a popular crypto method called Proof of Stake (PoS). Currently, if the investor wants to stake, there are a lot of options, like Ethereum, Cosmos, Solana, and Cardano.
The company released a letter on November 3, 2022, stating “In Q3, we launched institutional staking for Ethereum globally, and while adoption is still in its early days, we are optimistic about the long-term opportunity.”
Somehow, the filings against Coinbase had a negative impact on third quarter earnings. Coinbase, filed a lawsuit for breaking the intellectual property rights of Middleton’s by violating the claims of patent rights through various services available on the company’s website. The filing stated that Coinbase has to pay $350 million (USD) to Veritasium for violating patent rights.
Currently, Coinbase is providing multi wallet support for both Ethereum and Solana. Now Ethereum and Solana can access 15 sub-wallets that are linked to one recovery wallet. Each sub-wallet will provide a unique address for the transaction.
The CEO of Coinbase, Brian Armstrong, attended the SFF 2022 event. On this occasion, he stated that regulation can protect retail users of the crypto assets while enabling Web3 innovations. Brain stated that Singapore wants to be a Web 3 hub, but it is not agreeing on crypto trading.
Recently, Coinbase got an approval from the MakerDAO community that it will be allowed to utilize 1.5% APY on the USDC treasury holdings. The users in the United States, United Kingdom, and the European Union will earn up to 1.5% APY on their USDC coin.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
