The stock of America’s only publicly traded crypto exchange is crumbling in the wake of FTX’s bankruptcy.
Shares for Coinbase, America’s largest cryptocurrency exchange, are trading at another all-time low as Bitcoin and the crypto market log some of the lowest digital asset prices in over two years.
- COIN stock fell 8.9% on Monday, from $44 at 14:20 UDT to $41.23 when the day closed.
- The current price is down 37% over the past month, and 87% from its all-time high of $342 in November of last year.
- Meanwhile, Coinbase 2028 bonds are trading for only $0.51 on the dollar, amounting to an annual yield of 17.77%.
- Coinbase’s declines reflect a wide-ranging year-long slide for both crypto and tech stocks, though its losses have been especially pronounced in November.
- FTX – a rival crypto exchange of comparable size – filed for bankruptcy on November 11, casting doubt on the financial status and safety of other exchanges and crypto custodians. For example, Crypto.com was forced to reassure investors multiple times that their assets were safe after accidentally transferring $400 million in crypto to another firm.
- Likewise, Coinbase CEO Brian Armstrong has detailed why a fallout similar to FTX is not likely at his firm.
“This event appears to be the result of risky business practices, including conflicts of interest between deeply intertwined entities, and misuse of customer funds (lending user assets)” explained Armstrong in a Twitter thread earlier this month.
- Recent data from CryptoQuant showed that Coinbase Pro has also been surpassed by Binance as the exchange with the largest Bitcoin holdings. According to Coinglass, Coinbase Pro has 527,000 BTC on hand at writing time.
- That said, the company confirmed on Monday that it holds another 635,000 BTC on behalf of the Grayscale Bitcoin Trust.