Coinbase shares appeared on the stock market relatively recently. This asset will be of interest to investors who follow trends in the world of cryptocurrencies. Coinbase shares have high volatility due to the volatility of cryptocurrencies. However, analysts consider this asset to be a promising one for long-term investing.
Coinbase Global, Inc. - is an American company that runs a platform for trading digital assets. This cryptocurrency exchange was founded in 2012. The main distinction of Coinbase is its adherence to U.S. legislation. The trading platform is licensed and adheres to the rules established by financial regulators in the course of its activities.
The crypto exchange debuted on the stock market under the ticker NASDAQ: COIN on April 14, 2021. At the IPO, Coinbase shares were trading at $381 per paper. However, by the end of April 2021, the value of this asset dropped to $294.77. The reason for such a fall in quotations was the decrease of the Bitcoin rate, which was trading at the level of $63,600 before the initial offering of securities on the exchange.
Coinbase allows traders to buy and sell digital assets. As of April 2022, the trading platform was the second largest crypto exchange in the world. At the time, the site had about 89 million users. The company provides services to traders from more than 100 countries. To join the customers of the cryptocurrency exchange, you need to register and mandatory verification with proof of identity.
Traders can buy/sell all popular digital coins: Bitcoin, Ethereum, Ripple, Cardano, Solana, and others. Investors can open a cryptocurrency wallet to store purchased assets. NFT trading from popular collections of non-mutually exchangeable tokens is also available on the platform.
A separate area of Coinbase's business is serving institutional investors. In the second half of August 2022, the number of such clients exceeded 14.5 thousand. According to the crypto exchange, only in the second quarter of this year, did the platform attracts 1.5 thousand institutional investors. For large customers, the company sets lower commissions than retail traders.
At the end of June 2022, Coinbase's stock price was at $53. By Aug. 18, the quote had risen to $82.7. During the week the shares of COIN went up more than 80%. The catalyst for this growth in quotations was the news that the investment company BlackRock will process cryptocurrency transactions using Coinbase Prime.
In the second quarter of 2022, the profit and net revenue of the crypto-exchange were below forecasts. Since the beginning of the current year stock quotes of Coinbase has fallen by more than 60%. This situation is due to the decline in trading volume on the platform and the fall in the quotations of many digital assets in 2022.
In the second quarter of 2022, the crypto-exchanges net revenue was $803 million. The trading platform's revenue depends on trading volumes. In the second quarter of 2022, this figure for Coinbase was $217 billion compared to $462 billion in the same reporting period of 2021. This explains the decline in profits of the company in the current year. In retail, turnover fell from $145 billion to $46 billion. The subscription and services business brought the company revenue of $147.4 million, down from $102.6 million a year earlier.
The company noted that Coinbase posted a net loss per share of $4.98 in the second quarter of 2022. The management of the company in a statement to shareholders explained this situation to the decline in the total capitalization of the crypto market to $1.3 trillion and the difficult geopolitical situation in the world.
In the short term, analysts are predicting Coinbase shares to be priced below $100 by early 2023. While the crypto exchange's quotes are far from their historical maximum, the trading platform is evolving and developing ways to increase revenues. In addition, the company has an excellent reputation among competitors and is considered a trusted brand. This makes crypto exchange securities a lucrative asset to invest in for the long term.
Coinbase stock was listed on the stock exchange after the coronavirus pandemic began, so we can't track how COVID-19 has affected stock prices.
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Between August 2021 and August 2022, Coinbase's stock price dropped from $257 to $83. In November 2021, COIN Stock's asset price was climbing above $340.
Coinbase stock can be bought and sold in automatic mode on the copy trading platform from DotBig. The broker also offers a service of free trading signals and advisor programs.
Coinbase competitors such as Binance or Kraken have not yet debuted on the stock exchange. However, you can choose to invest in other companies that transact in digital currencies or are otherwise related to crypto-assets. These include Square, AMD, and Nvidia (the processors produced by the latter two companies are used for mining cryptocurrencies).
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