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Crypto Scepticism Spreads as Coinbase Plunges to New Lows

Coinbase Global Inc. bonds and shares dropped to new lows last week Wednesday.

Hillary Opondo May 17, 2022

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Coinbase Global Inc. bonds and shares dropped to new lows last week Wednesday. This occasion signaled investors’ scepticism regarding crypto exchange prospects in a bear market. The company’s shares plunged by about 23% to $56.04 by mid-morning. 

Generally, it was a far cry from the $328.28 first-day closing price after it went viral in April. Its bonds dropped, exchanging with the highest-risk notes. 

Furthermore, the company is unlikely to shoot back to profitable levels after a significant increase in volatility and price. Experts say Coinbase stocks will struggle to outperform competitors.

What is Signaling Investor Scepticism?

For the most part, Coinbase reported lower revenues last week. Hence, they warned monthly transacting users to expect a worse trading volume in the second quarter. The new risk disclosure triggered concerns about crypto assets' safety trading with the company if it becomes bankrupt.

Coinbase's chief executive officer, Mr. Brian Armstrong, posted on Twitter seeking to clarify that there is no risk of going bankrupt. He insisted that users’ funds are safe and apologized for the sluggish communication, clarifying options like Stablecoin and TerraUSD also plunged. On the other hand, Bitcoin fell to about $30,000.

Who is Coinbase Global Inc.?

Coinbase Global Inc. refers to a crypto investing and trading platform that allows users to exchange, sell, and buy over 100 tradable cryptos like Ethereum and Bitcoin. It is a large trading company with over $278 billion in assets and 89 million users on the platform.

It offers the original Coinbase option for beginners to sell and buy orders. The platform also features other advanced options like order types using Coinbase Pro. Crypto is naturally a volatile and risky asset that might not work well for all investors. All in all, Coinbase is the most preferred platform for both veterans and newbies.

Its users trade nearly $547 billion quarterly, operating with users from over 100 different countries. Thus, it runs an enormous crypto environment that supports over 11,000 financial institutions. The company gives users a suite of Coinbase products to help them access everything they require to manage a crypto profile or trading plan.

If the company runs into bankruptcy, it will impact over 100 crypto options. Therefore, the platform is keen to update its coin list regularly. Options available now include SUSHI, DAI, MATIC, Stellar Lumens, ALGO, SHIB, LTC, UNI, DOGE, USD Coin, DOT, SOL, ADA, Ethereum, and Bitcoin.

Coinbase Lows as Cryptocurrency Scepticism Rise Final Remarks

The new lows as cryptocurrency scepticism rises are worrying investors who hold crypto assets. Also, crypto prices and bonds fell as per Coinbase chief financial officer remarks. In any case, TerraUSD backers, TerraUSD Stablecoin continued coverage Coinbase leads selloff. 

Goldman Sachs Group Inc. is also worried about more coverage of Coinbase and crypto-assets held. In other words, it would be best to conduct extensive research before investing in Coinbase during the next quarter. Above all, you ought to invest in expert-level tools and skills to get the best results.

Hillary Opondo

All the content is provided for general information only and trade signals should not be construed as any form of regulated advice. It does not take into consideration your personal circumstances, including your investment objectives, risk profile, tax status, knowledge and understanding or financial situation. Past performance is no guarantee of future results.