Shares of the U.S.-based cryptocurrency exchange Coinbase (COIN) hit their lowest price since the company went public in April 2021.
COIN dropped to $40.62 on Monday, down 10% on the day and 39% in November as investors retreated from digital assets, in part thanks to the fallout from the bankruptcy of crypto exchange FTX.
Coinbase's shares traded at slightly over $400 last year on the day the company went public on the Nasdaq, which turned out to be their highest point. (At the time at least one expert warned investors should “buckle up their seatbelts and expect a wild ride.”)
The bitcoin (BTC) price rose to a record high near $69,000 in November 2021, but crypto markets have been falling ever since, as have Coinbase's shares. The stock has lost more than 80% of its value this year, underperforming most cryptocurrencies.
“Coinbase shares can't catch a break,” Oanda senior market analyst Edward Moya said. “The major cryptocurrency exchange has yet to convince investors that its share price will stabilize like some of the other top cryptos as investor skepticism about trading on exchanges grows."
Bonds issued by Coinbase also dipped in November as investors’ appetite for crypto tanked after FTX’s bankruptcy triggered industry-wide contagion. Coinbase’s bonds dropped 15% in value this month and are trading at 50 cents on the dollar, according to data firm Finra-Morningstar.
“Coinbase has a small exposure to FTX, but most of the recent weakness is stemming from concerns many crypto traders might be opting for cold storage instead of keeping money on exchanges,” Moya said. “Coinbase has a tough road ahead until investors have further clarity on the company's reserves and exposure to other crypto assets.”
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