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Yeah I actually read their shareholders letter, it seems that their Net loss is ~400mil. Which to be fair doesn't seem to be alarming since they were still in t
by Hchanni 4y ago
Yeah I actually read their shareholders letter, it seems that their Net loss is ~400mil. Which to be fair doesn't seem to be alarming since they were still in their hyper growth phase in Q1. I'd assume their revenue will go down from 1bil to like 650mil at the worst, and their general costs will probably go down too, to around 1bil maybe a bit less too but who knows.
- wollsmoth 4y agoThat seems reasonable. It's alarming to me that they seem to have hit a wall. What were the conditions that facilitated their hyper growth phase? Is the introduction of numerous, highly advertised competitors the difference? Are we moving to a place where people are trading less and holding more? I'd love to know more about their game plan.
- vosper 4y ago> What were the conditions that facilitated their hyper growth phase? A huge wave of crypto hype and a worldwide asset price bubble (including their stock price as well as crypto currencies) fueled by central-bank money printing during Covid. > Are we moving to a place where people are trading less and holding more? Well, just trading less, as the crypto collapse is going to burn (has already burned) so many people that it will take some time before the next round of hype and FOMO builds, so that a new set of bag holders can be found.
- wollsmoth 4y agoYeah that's what I was pointing to.. But who knows if it will recover and how well. Ripple seems to have some good uses with speeding up money transfers but I wouldn't be shocked if crypto doesn't end up amounting to much in terms of practical applications.