The winter of the cryptocurrency market also impacts companies in the sector listed on the stock exchange. The stock exchange Coinbase (COIN) is currently at $41, the all-time low since it was listed at $370 in April 2021.
Coinbase stock plummets
Two weeks after the FTX affair, which shook the entire cryptocurrency market, Bitcoin (BTC) continues to plunge and drags the rest of the altcoins behind it. The King of Cryptos down 3.1% on Monday, November 21 and trades at $15,500 at the current price.
This crisis has also spread to listed companies in the sector, like Coinbase. The cryptocurrency exchange, whose stock is listed on the Nasdaq, just printed its all-time low since its listing.
Coinbase (COIN) stock chart since listing
Since listing in April 2021, at a price of $370, Coinbase’s stock has continued to tumble. At the time of this writing, it trades for $41 eacha decrease of almost 90% within a year and a half.
It was a big first for the cryptocurrency ecosystem and certainly the most anticipated IPO of the year 2021. In the midst of the bull market, Coinbase became the first cryptocurrency exchange to take this step.
Despite an excellent financial health displayed and more than exciting results – $322 million profit in 2020 for around 43 million users – the bear market we are currently experiencing will have put off traditional investors.
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Coinbase undergoes the FTX case
The FTX case challenged many beliefs and principles, sweeping aside the trust established by players in the cryptocurrency ecosystem for several years. The first to suffer the consequences are the centralized cryptocurrency exchangesof which Coinbase is a part.
And yet, Coinbase used the collapse of FTX to present itself as a more serious platform and more compliant than the competition. However, this did not prevent the company’s stock from continuing to fall.
Ad we ran in WSJ today – timely https://t.co/fsxy848S5N
—Brian Armstrong (@brian_armstrong) November 18, 2022
If the second largest platform in the industry is collapsing like this, what indicates that the others will not do the same? Even transparency initiatives, such as Proof of Reserve, are not enough to reassure investors so much confidence in centralized entities is flouted.
However, it is important to put the fall in Coinbase stock in a broader context. The Nasdaq Index is down 30% from its high point in November 2021 and prints a decline of 1% on the day today.
👉 IPO of Coinbase: a company initially valued more than BNP Paribas and Crédit Agricole
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Source: Trading View
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