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- Cathie Wood’s ARK Invest buys stocks in Coinbase and Block.
- Coinbase got Wells Notice, while Block got Hindenburg Report.
In coincidental timing, Cathie Wood’s ARK Invest is selling and buying Coinbase shares during the Wells notice, causing a dip. In an interesting chain of events, ARK sold 160,887 shares on March 21. Coinbase received Wells Notice on March 22 from the Securities and Exchange Commission, causing a 16% dip in its stock prices. During this dip, ARK purchased 268,928 shares.
Cathie Wood and Coinbase
Cathie Wood has always kept a bullying attitude towards Bitcoin and Coinbase. She believes that Coinbase is the gateway to Bitcoin. As the volatility of both BTC and COIN is more or less similar– the timing of selling and buying, especially at the time of Well Notice, may or may not be a coincidence!
Ark Invest’s Recent Activities on Coinbase & Block
On March 24, 2023, ARK purchased $12.6 million of Coinbase’s shares. While previously, they sold 160,887 shares worth $13.5 million on March 21, 2023, when the stock was approx. $83 per piece. This buying and selling came when Coinbase received a Wells notice from the SEC on March 22, 2023, for violating securities laws.
Block and Hindenburg
Short seller Hindenburg announced their report on fintech payment company Block (SQ) on March 23, 2023, causing a drop of 17%. The report says that after a thorough two–year investigation, they found that Block took advantage of the demographics. They overstated their metrics, thereby duping investors. They avoided regulations and portrayed predatory loans and fees as a revolutionary technology.
However, Block has argued against the report, saying it was designed to confuse their investors. They also intend to explore legal action options against Hindenburg Research for factual misrepresentation and spreading misleading information.
The SEC vs. Crypto Community
Crypto exchange Coinbase received a Wells notice from the country’s financial watchdog, the Securities and Exchange Commission, on March 22, 2023. The notice signals that the agency has thoroughly investigated their behalf, and the evidence that came forward is enough to issue a notice.
However, a notice issuance, in this case, does not mean that strict enforcement action will take place, as Coinbase has been given time till March 29, to reply with or without the decision of contesting the enforcement action.
On March 22, 2023, the SEC announced filing a lawsuit against Tron founder Justin Sun, BitTorrent, and Rainberry for selling unregistered securities and market manipulation with wash trading. At the same time, famous personalities have been sued for illegally promoting crypto tokens and protocols.
The SEC has been very strict against the crypto community and is supposedly working to classify crypto assets and tokens as securities. A similar case has happened between them and Ripple since December 2022. If the SEC wins this case, every other token will fall under securities criteria, forcing issuers and companies to register with the SEC, thereby bringing the crypto industry under centralized regulations.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
