Crypto Market Overview August 10th | Dex-Trade
Coinbase Lost Over $1 Billion in the Second Quarter of 2022
American crypto giant Coinbase has shared its Q2 earnings report, in which the company's total net loss was $1.1 billion, which has caused concern to many of the company's investors. Adding fuel to the fire was the fact that during the reporting period, Coinbase representatives repeatedly assured investors that the company did not have serious financial problems, and its activities for this period are focused on consolidation, which is designed to guarantee future growth prospects for business indicators and large-scale changes for the better. However, in the second quarter of 2022, Coinbase posted its biggest quarterly net loss since the company went public on the NASDAQ stock exchange. In addition to a net loss of $1.1 billion, the company also reported an EBITDA loss of $151 million. Coinbase representatives attributed this to an increase in operating costs due to massive hedging of the rates of the exchange's clients, which occurred simultaneously with the global fall in the crypto exchange's revenue. By the way, compared to the first quarter of 2022, Coinbase's operating expenses, according to the report, increased by 8%, but in the same period the company reduced its staff by 18%, so it’s possible that its real expenses could be even higher. Apparently, this is the real consequences of the crypto-winter.
Iranian Authorities Transferred Imports to "Crypto-Rails"
The Iranian authorities announced their intention to pay for imports with cryptocurrency and this week already placed the first official order for the import of a certain amount of goods into the country, for which they will pay $10 million in digital money. Alireza Peymanpak, the vice minister of industry of the country, also said that by the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries. He also confirmed the first successful closing of a deal with crypto payment by writing an official tweet about this from his account. By the way, Iran has been considering using cryptocurrencies to pay for imports for more than a year. The country's Central bank (CBI) announced back in August last year that banks and licensed exchangers could use the cryptocurrency mined by Iranian miners, who also received official licenses, to pay for merchandise imports. But there is also a downside to the motivation of the crypto industry, as some unlicensed miners use domestic electricity produced at the country's facilities, which leads to serious problems for the country's energy sector. Since 2020, the Iranian government has already ordered licensed crypto miners to stop working several times to prevent rolling blackouts. Last September alone, the country’s authorities confiscated more than 220,000 mining machines and shut down almost 6,000 illegal crypto farms across the country. But it was possible to simplify the procedure for obtaining a license...
German Crypto Exchange Lost Solvency Due to Crypto Winter
German cryptocurrency exchange Nuri has filed for insolvency in a Berlin court due to a prolonged bear cycle that the crypto market has been experiencing since the beginning of the year. But while insolvency is often reason enough to go bankrupt and freeze all financial transactions, unlike other platforms and investment funds that have put client withdrawals on hold, Nuri users can still move and operate their assets. By the way, Nuri became the first German crypto company to file for insolvency after failing to find short-term venture capital investors interested in helping to overcome the losses associated with the crypto winter. Nuri worked closely with lending service Celsius Network, which went bankrupt in June 2022, which was one of the main reasons that prompted the company to file for insolvency. Now, the bankruptcy of Nuri could lead to increased regulatory action for the crypto industry in Germany, as the marketplace operated without a banking license thanks to a partnership with licensed technology company Solarisbank, which has branches in Spain, Italy and France.
