What Coinbase Is Building During the Crypto Winter

Shares of cryptocurrency stock Coinbase Global (NASDAQ: COIN) have dropped over 85% from their peak in late 2021 as the crypto market has imploded. Trading is down, prices are down, and there's concern that margins will be under pressure all year.

As terrible as the operating conditions are today, Coinbase continues to build for the future. And if it can execute on plans to become more than just an exchange, this could be one of the biggest winners in the future of crypto and Web3.

Coinbase has made its money by being a popular crypto exchange, particularly in the U.S. But there are other exchanges with lower fees, and there will naturally be pricing pressure for Coinbase to lower transaction costs for all users. Combine that with the decline in transaction volume overall and you have a recipe for declining revenue and margins in 2022.

Source Fool.com