Does This Crypto News Spell Doom for Coinbase Stock?

Shares of the large U.S. crypto exchange Coinbase (NASDAQ: COIN) took a hit this morning after Binance.US announced plans to eliminate fees on spot Bitcoin (CRYPTO: BTC) trades for users that make those trades with the U.S. dollar, Tether, USD COIN, and Binance USD. The move comes as the crypto market is floundering and the price of Bitcoin this past weekend plunged below $18,000. It's another big threat to Coinbase, whose stock has fallen more than 78% this year due to lower crypto trading volume and lower crypto prices. Does the news spell doom for the stock? Let's take a look.

Trading fees make up the bulk of Coinbase's revenue. For instance, in the first quarter of 2022, as trading volume on the platform fell to its lowest level in five quarters, so did net revenue. The big concern is that even with the decline in revenue in Q1, transaction revenue still made up roughly 87% of total revenue.

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Source Fool.com