Cybersecurity IssuesCoinbase Global disclosed a significant cybersecurity breach and confirmed an ongoing SEC investigation regarding its past user metrics.
Profitability ChallengesThe outlook for the second quarter disappoints due to a structural shift in volume mix from retail to institutions, which earns thinner margins, thereby dragging near-term profitability.
Retail Volume DeclineRetail transaction volume has declined from its peak, and the decline in retail trading frequency is expected to be structural due to lower volatility and the existence of ETFs as low-cost convenient alternatives.