Fund Manager Jim Chanos Says He’s Shorting Coinbase

The founder of Kynikos Associates called the crypto exchange a “bubble stock” in a CNBC interview.

AccessTimeIconMar 18, 2022 at 11:08 p.m. UTC
Updated Mar 21, 2022 at 2:06 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

Jim Chanos told CNBC Friday he’s shorting cryptocurrency exchange Coinbase (COIN), calling it a “bubble stock.”

  • Chanos expects fee compression as competition increases across crypto exchanges, and doesn’t think Coinbase can be profitable this year.
  • “We basically think Coinbase is over earning,” Chanos said in the interview. “If you do the numbers, their revenue base is roughly 3% to 4% of their custodian assets, their customer assets.”
  • CNBC’s report did not mention the size of Chanos’ short position.
  • Wall Street has remained positive on the longer-term outlook for Coinbase, despite expectations for some near-term headwinds. Analysts expect Coinbase to diversify its revenue from different segments, including non-fungible tokens (NFT).
  • Coinbase shares were down about 1.8% in after-hours trading Friday, and have fallen 26% this year.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

Trending

1
CoinDesk - Unknown
Former JPMorgan Banker Samir Shah Becomes COO at Pantera Capital

Shah joins Pantera after 12 years at JPMorgan spanning roles in sales, strategy and digital.

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Asia: Bitcoin Rebounds Past $20K; China’s Blockchain Revolution Is Missing On-Chain Data

Ether and most other major altcoins regain ground they'd lost in last week's downturn; China companies seem unconvinced by blockchain technology.

CoinDesk - Unknown
3
CoinDesk - Unknown
NFT Platforms Should Be Caught by EU Money-Laundering Overhaul, Lawmakers Say

Unhosted wallets and decentralized finance were left largely unscathed by two landmark crypto laws agreed to last week, but left-wing lawmakers may seek another go as they discuss dirty-money rules.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin se recupera y supera los $19K; Nomura advierte de una recesión en EE. UU. y Reino Unido

Nomura escribió acerca de una recesión en la eurozona, el Reino Unido y Asia Pacífico, lo que podría influir en los precios de las criptomonedas.

CoinDesk - Unknown