Home » Coinbase shares at all-time low as market plummets

Coinbase shares at all-time low as market plummets

by Christian

The winter of the cryptocurrency market is also impacting publicly traded companies in the sector. Shares in exchange platform Coinbase (COIN) are currently at $41, the lowest in history since its listing at $370 in April 2021.

Coinbase stock in free fall

Two weeks after the FTX affair rocked the entire cryptocurrency market, Bitcoin (BTC) continues to plunge and is dragging the rest of the altcoins behind it. The king of cryptos is down 3.1% on the day on Monday 21 November and is trading at $15,500 at the current price.

The crisis has also spread to publicly traded companies in the sector, such as Coinbase. The Nasdaq-listed cryptocurrency exchange has just printed its lowest point in its history.

Since its listing in April 2021 at a price of $370, Coinbase’s stock has been steadily plummeting. At the time of writing, it is trading for $41 a share, a drop of almost 90% in the space of a year and a half.

It was a big first for the cryptocurrency ecosystem and certainly the most anticipated IPO of 2021. In the midst of the bull market, Coinbase became the first cryptocurrency exchange to take this step.

Despite a strong financial track record and more than exciting results – $322 million in profit in 2020 from around 43 million users – the current bear market will have chilled traditional investors.

Coinbase suffers from FTX

The FTX affair has challenged many beliefs and principles, sweeping away the trust that has been built up by players in the cryptocurrency ecosystem for several years. The first to suffer the consequences are the centralized cryptocurrency exchanges, of which Coinbase is one.

And yet, Coinbase used the collapse of FTX to present itself as a more serious and compliant platform than the competition. However, this has not stopped the company’s stock from continuing to fall.

If the second largest platform in the industry collapses like this, what’s to say the others won’t do the same? Even transparency initiatives, such as the Reserve Proof, are not enough to reassure investors, as trust in centralised entities is being undermined.

However, it is important to put Coinbase’s share price fall into a broader context. The Nasdaq index is down 30% from its November 2021 high and is down 1% on the day today.

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