Shares of US-based cryptocurrency exchange Coinbase (COIN) have reached their lowest price since the company went public in April 2021. Here are the details…
Coinbase shares at their lowest
The COIN slid 39 percent to $40.62 in November as investors withdrew from cryptocurrencies, in part due to the bankruptcy of crypto exchange FTX. Shares of Coinbase were trading at just over $400 on the day it went public on the Nasdaq, the company’s high last year. Bitcoin (BTC) price soared to a record high near $69,000 in November 2021.
But crypto markets, like Coinbase’s shares, have been falling since then. The stock has lost more than 80 percent of its value this year and has outperformed most cryptocurrencies. Edward Moya, senior market analyst at Oanda, used the following statements:
Coinbase shares can’t take a break. The major cryptocurrency exchange has yet to be convinced that its share price will stabilize like some other cryptocurrencies as investors’ skepticism about trading on the exchanges grows.
Stocks also lost value.
Coinbase-issued bonds also fell in November as investors’ appetite for crypto waned after FTX’s bankruptcy triggered the industry-wide collapse. Coinbase’s bonds have lost 15% this month, according to the data. It trades at 50 cents against the dollar. Moya said, “Coinbase has a small impact on FTX. However, much of the recent weakness stems from concerns that many crypto traders may prefer to put money in their cold wallets rather than keep them on exchanges.”
Coinbase used the collapse of FTX to market itself as a more reliable and compliant exchange. However, this did not prevent the company’s shares from losing value. Coinbase also issued a statement stating that it is impossible for the bank to trade on its own exchange as client assets are supported at a 1:1 ratio. He also said that FTX is not exposed to the token FTT approaching zero. The exchange disclosed its exposure to Alameda Research, which has a $15 million deposit in FTX as of November 8.
The CEO of the stock market made a sale
Meanwhile cryptocoin.com As we have also reported, the CEO of the exchange, Brian Armstrong, has sold some of his own COIN shares. The last 29,732 share sales by the CEO brought in a total of $1,625,151.12. The average price per share was $54.66 across 13 trading strings of Coinbase stock (COIN). The lowest price was during the sale of a smaller group of 300 shares, valued at $46.70 each.
