Coinbase’s direct listing levels in China are being pushed back

  • Coinbase Global Inc. is reeling from a slew of negative news five months after taking an unorthodox path to public markets
  • On days with significant volatility, like today, you just see larger volumes. Coinbase bonds have also hit new lows
  • Traders have been debating the proper price for Coinbase shares since the day of the company’s public listing when a lunchtime selloff in the stock shook the larger market as well as crypto assets

Coinbase Global Inc. is reeling from a slew of negative news five months after taking an unorthodox path to public markets. After China prohibited all crypto-related transactions, shares in the cryptocurrency exchange fell to their lowest level since August 3. It’s the latest in a series of events that have sent the stock 39 percent down since it went public via a direct listing on April 14. Bitcoin hasn’t climbed back to its all-time highs since Coinbase went public, and that’s what’s been weighing on the stock, Needham analyst John Todaro said in an interview. He does not believe it’s fair that Coinbase is punished on days like these because it’s primarily a trading platform. 

On days with significant volatility, like today, you just see larger volumes. Coinbase bonds have also hit new lows. The company’s assets have been under strain as the cryptocurrency sector has come under more scrutiny. In addition to China’s crackdown, the United States is seeking to monitor the industry, and nations such as the United Kingdom, Thailand, and South Korea are looking into it more closely. The Bahamas may become a center for the sector as regulatory problems become more important. After officials took a proactive attitude on crypto, crypto-derivatives exchange FTX announced on Friday that it is officially based there. 

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Traders have been debating the proper price for Coinbase shares since the day of the company’s public listing when a lunchtime selloff in the stock shook the larger market as well as crypto assets. Since coming public, two of this year’s four direct listings have traded down. Squarespace Inc., like Coinbase, has dropped 13% since it began trading on May 19. The decline is continuing less than a week before another business chooses to bypass the regular IPO procedure. Warby Parker Inc., an eyewear retailer, is slated to begin trading on September 29.

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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