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Coinbase cut costs and bolstered rep, but profits remain challenged: Analysts

Published 01/23/2023, 01:16 AM
Updated 01/23/2023, 03:00 AM
© Reuters
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Cryptocurrency exchange Coinbase (NASDAQ:COIN) won’t escape from the profitability challenges it will face from the crypto market downturn, despite having a strong brand and credibility in the crypto market, according to investment analysts.

Credit rating firm Moody’s released a note on Coinbase on Jan. 19 discussing its downgrade of Coinbase’s senior debt and corporate family rating (CFR) — a rating assigned to reflect the opinion of a company’s ability to honor its financial obligations.

Coinbase CEO Brian Armstrong at a conference in 2018. In the most recent round of layoffs, he said the firm needed “the appropriate operational efficiency to weather downturns in the crypto market.” Image: Flickr

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