01-23-2023 icon

Coinbase Reduced Costs And Sustained Market Reputation, But Gains Still Incapacitated: Reviewers

By Lucy Adegbe

Digital currency trading platform Coinbase appears to be far away from solving its gain issues which it will encounter from the digital currency market nosedive, notwithstanding its maintained reputation and reliability in the digital market, investment reviewers noted.

Lending rating protocol Moody’s published a statement concerning Coinbase, this past Thursday, debating its minimization of the firm’s major credit and corporate family rating (CFR), a rating designated to showcase the idea of a firm’s capacity to fulfill its monetary duties.

The trading platform’s CFR and major credit were downgraded from Ba3 and Ba2 ratings to B2 and B1, categorically. This connotes that Coinbase is at a “non-investment grade” and relatively prone to increased credit challenge, Moody’s highlighted.

Moody’s stated that the exchange is encountering major incapacitated earning and liquidity generation as a result of critical situations, majorly plunged digital currency value and reduced exchange activities.

The recent market turmoil led Coinbase to retrench 20% of its total workforce on the 10th of January, following its June 18% cut in workers.

JPMorgan, on a different note, claimed that the exchange’s reliability and maintained reputation in the digital space appear nourished following the recent crashes. 

Adding to the initial comment, the credit firm reviewers noted that Coinbase could turn out to be a “beneficiary of the challenges” other trading protocols have encountered since the FTX crash.