Shares of crypto friendly app Coinbase, recently down 9% to $46.11 in Wednesday trading!
Officially reaching what would represent a new all-time low, as the crypto industry continues to be roiled by the FTX collapse.
Wednesday’s decline saw the shares below their all-time closing low of $47.02, set on March 30. The company went public in April 2021 via a direct listing.
Tweet on Coinbase stock plunge
Shares of @Coinbase recently down 9% to $46.11 in Wednesday trading, touching a new all-time low, as the crypto industry continues to be roiled by the FTX collapse.
— The_Journalbiz (@the_journalbiz) November 9, 2022
Chart Factset, Data:Coindesk
Shares of Coinbase, the largest U.S. exchange and the second-largest in the world, are down more than 80% year-to-date, well below their all-time closing high of $357.39 set on Nov. 9, 2021.
The collapse of a competitor can be good for a company, but FTX’s collapse is different. For one thing, FTX is in talks to be acquired by Binance, by far the largest crypto exchange in the world. With roughly 50% market share of both spot and derivatives trading, about half of all crypto trading goes through Binance. Coinbase’s largest competitor would get larger if it absorbs FTX.
Meanwhile, FTX’s collapse and the downfall of its high-profile founder, Sam Bankman-Fried, is the latest in a string of calamities that have wiped out trillions of dollars of value, ruined many investors, and driven away traders.
In the third quarter, Coinbase’s trading volume fell by 51%, to $159 billion from $327 billion a year ago. Transaction fees are roughly four-fifths of the company’s revenue.