As the FTX crisis continues to ferment, the share price of Coinbase, the largest cryptocurrency exchange in the United States, fell 8.9% on Monday, closing at $41.23, a record low, with a market value falling below $10 billion.
On the first day of its listing on April 14 last year, Coinbase's market value reached its peak of US$85 billion. But so far this year, the company's stock price has fallen by more than 80% in the so-called "cryptocurrency winter" and has lost a quarter of its market value in the past four trading days alone.
Coinbase must also deal with the negative concerns brought to the crypto market by the crash of peers FTX. FTX filed for bankruptcy earlier this month after suspending customer withdrawals, with its tens of billions of dollars in market value eroded.
BOC Analyst Jason Kupferberg downgraded Coinbase's stock rating from "buy" to "neutral" last Friday, writing that while he was "confident" that Coinbase was not "another FTX", the impact of the crash could linger in the minds of regulators and cryptocurrency investors.
Kuppferberg wrote: “With the elimination of a large competitor, and COIN reaffirms its concerns about compliance and customer asset security, we believe COIN may be able to gain market share in the long term .” However, a decline in confidence in the crypto ecosystem (especially retail investors) may curb overall trading activity.”
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