Coinbase shares plummet more than 80%
2 min read
Coinbase is currently experiencing one of the ‘worst case scenarios’ with the appetite of risk-averse investors. This is because in addition to being a cryptocurrency company, it is listed on the NASDAQ and is seen as a technology company.
Coinbase shares on ATL
So the result is a disastrous fall for the first American cryptocurrency company to go public on the stock exchange.
Therefore, Coinbase shares have already dropped more than 80% since their all-time high of $430 per share. The Coinbase share price has dropped so much that it has dropped below $84.30 a share.
All of this took place while the NASDAQ was collectively taking its own significant dip when the composite index dropped 17%.
So, as market analysis firm Protos points out, other quarantine darlings such as Zoom and Shopify are down 72% and 69% respectively, while cryptocurrency leader BTC is down around 36%.
But, according to the company, as troubling as those numbers are, few companies have matched the consistent and dramatic drop suffered by Coinbase, which has never been compared to the hype of its direct listing.
“While the complexities of a direct listing meant that insiders were inherently forced to sell Coinbase shares it never looked good in the public eye, and the stock never recovered,” the company said.
Coinbase has performed particularly poorly despite beating its fourth quarter 2021 revenue and earnings per share forecasts. Earnings for the first quarter of 2022 are yet to be announced this week.
So, while its shares melt, the exchange seeks to expand its markets and its next target is Brazil.
“Brazil is an important technology hub for Coinbase’s global expansion, so we need a global engineering team that reflects our goal of increasing economic freedom around the world. Cryptocurrency is a great opportunity to efficiently and transparently provide access to capital. We believe that some of the best engineering talent is in Latin America and we are excited to grow in Brazil,” said Marcello Azambuja, one of the company’s managers in Brazil.
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