Coinbase Stock Loses Over 25% Since April IPO

Coinbase Stock Loses Over 25% Since April IPO

It was hailed as one of the greatest moments in cryptocurrency history. The Coinbase IPO was seen as the tipping point of the sector, a moment when cryptocurrencies will finally find their well-deserved place within the financial industry. Interest was high, and when Coinbase (COIN) began trading on the Nasdaq on April 14, 2021, the future looked indeed promising.

On the day of its public launch, Coinbase’s stock price ended the day trading at $328. Two days later it would reach its highest value to date, $342. After that, the stock price began a gradual and relatively disappointing decline, reaching $224.80 on May 19th.

Why did Coinbase’s Stock Price Drop?

Coinbase Stock Price Drop
Source: Yahoo Finance

2021 certainly began on a positive note for one of the largest and oldest cryptocurrency exchanges. In the first quarter of 2021, it succeeded to achieve the ambitious target of increasing its revenue by 843% compared to the previous year. This had given it an EBITDA of $1.1 billion and made it an attractive investment opportunity.

A significant part of Coinbase’s success was due to Bitcoin’s rise in value. By mid-April, roundabout the time of the stock launch, the world’s first and largest cryptocurrency topped almost $65k, its highest price to date. Excitement and speculation took hold across the cryptocurrency sector and investors were eager to join in at what they believed was just the beginning of a bull market.

Unfortunately for Coinbase and Bitcoin, the market was about to undergo an inversion. Just over a week after reaching its highest value, Bitcoin’s price plummeted to $48k. The price has continued a downward trend and is today trading at $39k. Part of this drop in Bitcoin’s price is likely due to Elon Musk’s comments on the energy consumption required to keep this coin going. This has naturally led to some investors abandoning cryptocurrencies and re-investing in more secure and less volatile assets.

The exchange also believes that part of its stock price drop is due to increased competition. It cites the fact that most exchanges offer coins without carrying out prolonged due diligence. This, it believes, puts investors at a higher risk of investing in a scam. Nevertheless, the increased due diligence implemented by Coinbase to introduce certain popular coins, such as Dogecoin, has certainly lost it significant business.

What’s Next for Coinbase’s Stock?

The future is unpredictable, especially for cryptocurrencies. However, looking at historical patterns, it is quite likely that Bitcoin and most major Altcoins will rebound from the current bear market. This should lead to a refreshed interest in the sector, and renewed growth for Coinbase.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

CFD Trading Platform,eToro,Trading

eToro Lowers The FTD Minimum Across Several Countries

eToro, the social trading and multi-asset platform, has decided to lower the minimum first time deposit, or FTD. Until further updates, users who sign up today using the link below will be able to fund their trading account with as little as $50. This offer is only valid to users in selected countries. To participate […]

24 September, 2021

ChangeNOW Launches The NOW Tracker App

The young, but fast-growing online cryptocurrency exchange, ChangeNOW, has just announced the release of its latest product. The NOW Tracker is a free asset management app that lets users keep track of their coins and tokens across different wallets. Available on Google Play and the App Store, NOW Tracker is flexible and functional. This solution […]

9 September, 2021

eToro Becomes An Official Partner Of RB Leipzig

The world’s leading social investment network, eToro, has recently announced a new and exciting partnership. According to an announcement on eToro’s Twitter page, the company has become the latest partner of the German football team, RB Leipzig. A two-year partnership agreement has been signed between the parties. Running until 2023, this agreement can be extended […]

24 August, 2021

PSG’s Messi To Receive Part Of His Salary In Cryptocurrency

The Argentinian footballer, Lionel Messi, has made headline news several times in the past few weeks. Following his surprise departure from FC Barcelona, the player confirmed that he will be joining Paris Saint-Germain FC. The move was significantly newsworthy but got even more interest when it was announced that part of the footballer’s salary will […]

23 August, 2021

KingTiger Casino Announces Shut Down

KingTiger Casino has announced that it has ceased all operations until further notice. According to its website, the casino has had to “temporarily close” due to Ethereum network congestion. It is not yet clear if and when this online Bitcoin casino will reopen. Registered players can still access their wallet and withdraw their funds. A […]

12 August, 2021

CryptoCasino Announces Temporary Close

CryptoCasino has stopped operating until further notice. According to a landing page on their website, the casino is undergoing an update. There is no information about when the casino will reopen or the reason why an update required the website to shut down temporarily. Players who hold a crypto wallet account with CryptoCasino need not […]

11 August, 2021

Binance Suspends SEPA Inward Payments Until Further Notice

Binance Suspends SEPA Inward Payments Until Further Notice Binance has just announced that it has temporarily stopped all incoming SEPA payments. As a result, users will no longer be able to deposit euros using the primary European payments network. The world’s largest cryptocurrency exchange did not provide any specific information regarding the reason behind this […]

12 July, 2021

Why are Crypto Holders Worried of Declaring Their Ownership?

Cryptocurrencies have been popularly regarded as the future of finance globally. Investing in virtual coins has become a lot easier than it was a few years ago with the evolving crypto industry. Over the last few years, Bitcoin has caused a lot of buzz in the market. It has established itself as the de facto […]

8 July, 2021