Coinbase has lost about $51 billion in market value since its first day of trading last April. Coinbase shares fell to an all-time low in early May, and even if they recovered, they are still down about 80% from their first trade.
According to researcher CryptoCompare, Coinbase’s market share is currently sliding to 4.8% of monthly crypto trading volume from 7.1% in November, as some users move to rivals such as DigiFinex and FTXUS.
Coinbase is expected to lose about $1.4 billion this year, according to analysts surveyed by Bloomberg. Analysts think Coinbase’s costs are too high.
Needham & Co. analyst John Todaro said in an interview that the company recently said it would slow hiring and may suspend sales and support expansion.
Coinbase’s full-time workforce has ballooned to 4,948 from about 1,700 a year ago. Hiring drove the company’s total operating costs to $1.7 billion in the first quarter, up 9% from the previous three months.