Coinbase Trading Volume Expected to Hit Lowest Point Since Before IPO
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Coinbase, the leading digital-asset platform in the US, witnessed a concerning 52% drop in its spot trading volume last quarter, plummeting to about $76 billion. According to a study by CCData, the trading volume now mirrors the figures seen just before its illustrious Nasdaq debut in April 2021. This decline is notable since a substantial portion of Coinbase’s revenue is generated from trading fees. The last quarter’s data revealed that over half of the platform’s total income came from transaction revenue, making this downturn particularly worrisome.
Legal Challenges Continue
Coinbase’s legal entanglements with the US Securities and Exchange Commission (SEC) persist as the trading volume shrinks. The SEC accuses Coinbase of operating an unlawful exchange, a claim vehemently denied by the platform. Coinbase has sought the dismissal of the lawsuit, arguing the SEC lacks jurisdiction over cryptocurrency matters.
Regulatory Support for SEC
Recent filings from three separate entities – the North American Securities Administrators Association (NASAA), the New Finance Institute (NFI), and a group of Administrative Law Scholars- have supported the SEC’s stance. They collectively assert that regulatory bodies like the SEC must apply existing laws to new financial landscapes, highlighting the necessity for expedited legislative action.
Innovation Amid Adversity
Despite these hurdles, Coinbase continues to evolve, recently announcing its decision to feature Big Time (BIGTIME) on its platform. The game, crafted by a veteran team behind successes like Fortnite and World of Warcraft, seeks to provide a unique multiplayer role-playing experience. It stands out by enabling players to own, trade, and even create digital assets through Non-fungible tokens (NFTs), ensuring Coinbase remains at the forefront of blockchain innovation amidst its ongoing challenges.
Filed under: Bitcoin - @ October 12, 2023 2:43 am