The bear market has been tough for everyone, and holding on to Coinbase shares may not be wise, according to Wells Fargo.
The multinational financial services company issued a profitability warning stating that the current market conditions may hurt the publicly traded crypto exchange.
- Despite having the early-mover advantage, Coinbase is now facing stiff competition from its rivals which have exploded the space in recent times.
- According to а CNBC report, Wells Fargo implied that the company would sell COIN shares and set a $57 price target.
- Its analyst, Jeff Cantwell, ranked Coinbase with an Underweight rating, arguing that downward pressure on the exchange is inevitable and that the retail pricing is to blame.
- Following the projection, Coinbase shares (COIN) plunged nearly 10% after US markets opened on Thursday. At press time, it is trading at $60.93.
- Amid the industry-wide slump, the cryptocurrency exchange lost more than $1 billion in the second quarter. It generated a revenue of $808 million, down from $2.2 billion a year earlier.
- The company has endured a grim 2022, struggling with a slew of crypto market corrections that, in turn, tanked its stock price. It was also forced to lay off hundreds of employees.
- Troubles from the regulation side of things continue as the US Securities and Exchange Commission (SEC) intensified scrutiny over cryptocurrencies listed on the platform after deeming them as securities.
- The watchdogs previously slapped charges of insider trading against two former Coinbase product managers.
- More recently, Veritaseum Capital sued Coinbase over patent infringement of crypto transfer technology. The lawsuit claims that the crypto exchange violated its rights by making, using, selling, offering to sell, and importing products and services into the US.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
- AA News
- Bitcoin
- blockchain
- blockchain compliance
- blockchain conference
- coinbase
- coingenius
- Consensus
- crypto conference
- crypto mining
- Crypto News
- cryptocurrency
- CryptoPotato
- decentralized
- DeFi
- Digital Assets
- ethereum
- machine learning
- non fungible token
- plato
- plato ai
- Plato Data Intelligence
- Platoblockchain
- PlatoData
- platogaming
- Polygon
- proof of stake
- Social
- W3
- zephyrnet
More from CryptoPotato
Justin Sun Secures Top Spot as Private ETH Staker with $439 Million on Lido: Data
Source Node: 2330507
Time Stamp: Oct 16, 2023
Jack Dorsey’s Bitcoin Academy Airdrops $1000 in BTC to All Attendees
Source Node: 1659453
Time Stamp: Sep 10, 2022
Bitcoin Fails to Conquer $30K, Ethereum PoS Merge on Ropsten Testnet Successful: This Week’s Crypto Recap
Source Node: 1349979
Time Stamp: Jun 10, 2022
Stanley Druckenmiller Predicts Potential Crypto “Renaissance” if Central Bank Faith is Lost
Source Node: 1702410
Time Stamp: Sep 28, 2022
XRP Price Analysis: Despite the Turmoil, Ripple Soars 20% Against BTC in a Week
Source Node: 1443863
Time Stamp: Jun 18, 2022
Bitcoin Mining Company Blockmetrix Closed a $43 Million Funding Round
Source Node: 1888577
Time Stamp: Mar 8, 2022
South Korean Crypto Exchanges Report Nearly 50% Surge in Suspicious Transactions in 2023
Source Node: 2486592
Time Stamp: Feb 18, 2024
Bullish? Russian Court Orders SberBank to Restore Access to Blocked Account Involved in Bitcoin Trading
Source Node: 1011492
Time Stamp: Aug 3, 2021
ETH Loses 16% in Three Days, Retest or a More Pain to Come? (Ethereum Price Analysis)
Source Node: 1594640
Time Stamp: Jul 26, 2022
XRP’s Price Plunge Spurs Whale Buying Frenzy Amidst Ripple Vs. SEC Saga
Source Node: 2555242
Time Stamp: Apr 23, 2024