Coinbase stock slides to an all-time low
Following the trading session on November 21, Coinbase stock of the bitcoin exchange fell to a record low of $41.23. Investors reacted to the deteriorating environment in the digital asset markets and the rise in distrust caused by the collapse of FTX.
During the session the intraday low stood at $40.61. The next day the shares rose 5.24%, to $43.39. Since the start of the year, long-term investors in Coinbase stock have lost 82.8% of their investments.
The exchange’s management distanced itself from its collapsed rival. Management urged clients to ‘trust the platform’ due to strict adherence to U.S. regulatory requirements and the absence of practices that led to FTX’s collapse.
— Coinbase (@coinbase) November 17, 2022
On November 8, in a blog post the company stated that it did not hold the problematic exchange’s utility tokens, and that it had $15 million on its books for client trades, while its cash and cash equivalents stood at $5.6 billion. Company representatives noted the absence of any dealings with FTX and its related Alameda Research.
On the next day Coinbase CEO Brian Armstrong ruled out the impact of the FTX crisis on the bitcoin exchange he runs.
ARK Invest’s Kathy Wood has returned to buying the company’s shares.
According to the Q3 report, the US-based bitcoin exchange’s net loss amounted to $545 million versus $1.1 billion in the previous period. Revenue from transactional fees fell by 44%.
On November 21, Kaiko analysts noted a decline in trading volumes on bitcoin exchanges on a weekly basis after the FTX collapse.
Earlier, Coinbase analysts forecasted a prolonged crypto winter due to the FTX crash.
Read ForkLog’s bitcoin news on our Telegram — crypto news, rates and analysis.
Рассылки ForkLog: держите руку на пульсе биткоин-индустрии!