Investors are used to seeing Coinbase stock hit all-time lows of late, as it fell below $38 on Thursday to hit its sixth highest daily record in December. The price was $37.70, as of 11:30 a.m. ET – down more than 6% on the day. Coinbase’s stock has fallen nearly 85% since the start of the year.
The price of Bitcoin, meanwhile, has fallen about 75% since it hit nearly $70,000 in November 2021. The latest thing of all time for Coinbase is happening in the weeks following the bankruptcy of the crypto exchange FTX that led to the filing for bankruptcy and the arrest of FTX founder Sam Bankman-Fried.
Coinbase and other crypto exchanges have been quick to implement — or point to — existing transparency measures, such as securities filings, in an effort to ease investor concerns. Kraken’s reformers, however, said that some industry players have recently tried to pass off a “cracked and misleading system” as proof of the audit reserve.
The Central Revolution is About Regaining Trust
Coinbase Chief Security Officer Philip Martin said on Nov. The company’s 25 blog post, which has already demonstrated its security through audited financial statements, explored other crypto-female ways to demonstrate its security.
The company, which is the largest US crypto exchange by trade, has launched a $500,000 innovation grant program to encourage others to do the same. But Josef Tětek, a bitcoin analyst at crypto hardware wallet company Trezor, along with other industry players, pointed to the crash of FTX and others – such as Celsius and BlockFi – as a reminder of the importance of digital assets and holding self.
“It’s all about trust,” Tětek said of using change in their wallets. But as bitcoiners always say: “Do not trust, verify. The only way to verify that you have coins is to use only the corresponding cryptographic keys and not, as in the case of exchanges, transfer this privilege to them.”
Binance CEO Changpeng Zhao said on Twitter on Wednesday that 99% of people who own crypto today will eventually lose it. Other prominent corporate voices question this characterization of private equity risk.
Buy Coinbase Dips
Ark Invest sold around 1.4 million Coinbase shares in July – worth around $79 million at the time – across many of its ETFs. He bought about 800,000 shares in November for his Innovation ETF ( ARKK ) in the days before and after FTX defaulted, according to trading data. Box has $290.55 million in Coinbase shares at the end of September, making it one of the largest institutional holdings in the industry, behind BlackRock, Andreessen Horowitz and Vanguard.
The box has strengthened Coinbase’s position. He acquired more than 375,000 shares in the past week, which is now worth nearly $13 million.
Ark Invest’s head of research, Frank Downing, said in a webinar on Tuesday that the company believes Coinbase should be “highly profitable” in the long term. He added that the publicly listed company may have “a break” from its competitors in the future as the law in the space is expected to be stronger.
