Coinbase, one of the leading cryptocurrency exchanges with more than $200 billion (USD) worth of assets under management, is currently facing fluctuations in its price. The recent FTX collapse hardly hit Coinbase’s price in the crypto market. On September 21, the price of Coinbase suddenly went low to $43.28 (USD0.
Recently the author of the popular book Black Swan Nassim Taleb reacted to Coinbase’s downfall in the crypto market. Nassim tweeted the largest US-based cryptocurrency company is “worthless.” “My point is that they are cash-flow negative, with a grisly future and owners have been getting out,” Nassim added.
Jim Chanos, a popular investment advisor, said that cryptocurrency stocks are now under pressure due to the downfall of fee revenue in the crypto market. Chanos stated that after the bankruptcy of major crypto exchange FTX the price of crypto assets gradually decreased. As Chanos was an expert in predicting the stock market, he warned that the S & P 500 could plunge another 55% in upcoming weeks.
Currently, Coinbase is trading at $43 (USD). Goldman maintained its sell rating on Coinbase and reduced its year-end price forecast to $41 (USD) from $49 (USD).
Jason Kupferberg stated, “We think Coinbase likely faces a number of new headwinds over the mid-term due to the recent collapse of rival crypto exchange FTX.” “As a result, we downgrade Coinbase to neutral from buy and reduce our estimates.”
Brian Armstrong About Coinbase
Coinbase CEO Brian Armstrong assured their platform users that Coinbase is a regulated institution and that the entity holds users’ funds as one-to-one backed, making a situation like FTX impossible. Brain stated that he was upset with the recent third-quarter earnings report.
“When new technologies come on the scene, they often go through these cycles, and the good companies can ride through,” Coinbase’s CEO stated.
Coinbase Third Quarter Earnings
The United States’ largest cryptocurrency exchange platform, Coinbase, announced its third-quarter earnings, which show a decline in profits. Due to weak market conditions and lawsuits filed against Coinbase, revenue fell to $576.4 million (USD), a decrease of 28% from second-quarter earnings. Net loss reduced to $544.6 million (USD).
According to CoinRepublic, Coinbase is looking to expand its global market into European nations. Recently, it got permission from the Netherlands and Italy to start its crypto businesses. Brian Armstrong recently attended the Singapore Fintech Festival (SFF) 2022 event. On this occasion, he stated that regulation could protect retail users of the crypto assets while enabling Web3 innovations.
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