Will Coinbase compete with Binance? While the world’s largest exchange platform falters since the departure of its historic CEO Changpeng Zhao, Coinbase seems to be well positioned in the USA. Zoom in on what could be the start of a paradigm shift in cryptocurrencies.
Coinbase shares have been soaring in recent days
Over the past few days, Bitcoin (BTC) and Ether (ETH) have been on the rise, in a rather optimistic ecosystem. This is also the case for Coinbase (COIN) shares, which are following a similar pattern to the major cryptocurrencies. Since the end of October, it’s gone from strength to strength, gaining +66% in less than a month :
Coinbase (COIN) shares take off in recent weeks
Last week, it reached $117, a level not seen since May 2022. This is of course due to the breakthrough in the price of Bitcoin and other major cryptocurrencies. But it is also due to Binance’s difficulties. Last week, the hegemonic exchange platform saw the sudden departure of its historic CEO, Changpeng Zhao.
It’s a minor upheaval, but one that could well benefit the US platform. It has just consolidated its position on the other side of the Atlantic.
Coinbase sets itself up as an alternative to Binance
Last week, the CEOs of Binance’s major competitor platforms were quick to comment on the affair, including Coinbase CEO Brian Armstrong. A few days ago, he declared:
“Since Coinbase was founded in 2012, we’ve taken a long-term approach. I knew we needed to get compliant. […] Today’s news confirms that doing things this way was the right decision. “
Coinbase thus emerges from the affair with its halo, to the point of confirming that the company will remain in the United States, despite the lack of regulatory clarity. It has to be said that it has reasons to bet on its native territory: several major companies – including BlackRock – have hired it to help them launch their future Bitcoin ETFs. Coinbase is therefore well placed for what many consider to be the next big adoption phase.
In a crypto landscape that has changed significantly over the past year, Coinbase finds itself in a good position, after the catastrophic fall of FTX, and the regulatory assaults on Binance. It remains to be seen whether the campaign by the Securities and Exchange Commission (SEC), as well as other US regulatory bodies, will subside in the months ahead.
