But today, Coinbase’s stock trades in the $150s. Let’s review four red flags that caused investors to rush for the exits, and whether or not that sell-off represents a good buying opportunity for long-term investors.
Image source: Getty Images.
- 1. There is a slowing in cryptocurrency trades
- Future coins on coinbase
- Upcoming coins on coinbase
- Future coin listings on coinbase
- Upcoming coins on coinbase 2021
- Upcoming coins on coinbase pro
- Upcoming coins on coinbase 2022
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4.
There are new regulations looming for Coinbase
- Upcoming coins on coinbase november 2021
- Future coins listed on coinbase
- 3. Slowing growth and rising investments
- New upcoming coins on coinbase
- Crypto democracy
1. There is a slowing in cryptocurrency trades
As one of the world’s largest cryptocurrency exchanges, Coinbase’s growth is pegged to the market’s interest in Bitcoin(BTC4.20%), Ethereum(ETH5.70%), Dogecoin(DOGE2.67%), and other cryptocurrencies.
That interest spiked during the pandemic as retail investors spent more time researching and buying cryptocurrencies online. Stimulus checks also provided additional funds for those purchases.
Future coins on coinbase
We combine these capabilities with leading security, insurance, and compliance practices to provide institutional clients of Coinbase with a full-service platform to access crypto markets at scale. Coinbase’s clients include hedge funds, asset allocators, financial institutions, corporate treasuries and other institutions.
Our scale, experience and integrated product offering represented what BlackRock believes to be a logical partner for Aladdin.
“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets,” said Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock.
Upcoming coins on coinbase
Meanwhile, Jim Cramer joined Andrew Ross Sorkin to discuss this new move on CNBC and whether it adds more value to Coinbase.
“Yes, absolutely because some people feel that Coinbase is this rogue, that it’s actually an exchange, it’s not a company. But with discovering that it looks like the Senate wants this to be regulated by the CFTC, which is much more pro-Coinbase, it makes then sense that Larry Fink would want to deal with them.”
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Cramer also added:
“It is kind of amazing, whether Coinbase is doing the right thing or not because they have 200 different coins that they list. And a lot of the coins are very suspect, even Robinhood wouldn’t take a lot of them.
Future coin listings on coinbase
In the U.S., the Securities and Exchange Commission (SEC) is expanding the definition of “securities dealer” to set stricter accounting standards for cryptocurrency exchanges.
The European Union recently barred all anonymous crypto transactions, a move that Coinbase CEO Brian Armstrong blasted as “anti-innovation, anti-privacy, and anti-law enforcement,” and the U.K. now requires all cryptocurrency exchanges to register for new licenses.
In India, Coinbase recently suspended cryptocurrency purchases through the country’s widely used Unified Payments Interface (UPI) as regulators drafted new laws to rein in or ban cryptocurrencies. Meanwhile, Brazilian lawmakers have also been drafting new guidelines for all digital assets.
Upcoming coins on coinbase 2021
This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes.”
The Coinbase partnership between BlackRock and Aladdin is an exciting milestone for our firm. As the trusted partner enabling institutions to participate and transact in the cryptoeconomy, we are committed to pushing the industry forward and creating new access points as institutional crypto adoption continues to rapidly accelerate. We are honored to partner with an industry leader and look forward to furthering Coinbase’s goal of providing greater access and transparency to crypto.
BlackRock and Coinbase will continue to progress the platform integration and will roll out functionality in phases to interested clients.
Upcoming coins on coinbase pro
Today marks an exciting next step on our journey as we announce that Coinbase is partnering with BlackRock, the world’s largest asset manager, to provide institutional clients of Aladdin®, BlackRock’s end-to-end investment management platform, with direct access to crypto, starting with bitcoin, through connectivity with Coinbase Prime. Coinbase Prime will provide crypto trading, custody, prime brokerage, and reporting capabilities to Aladdin’s Institutional client base who are also clients of Coinbase.
Built for institutions, Coinbase Prime integrates advanced agency trading, custody, prime financing, staking, and staking infrastructure, data, and reporting that supports the entire transaction lifecycle.
Upcoming coins on coinbase 2022
Excluding stock-based compensation expenses, it plans to spend $4.25-$5.25 billion this year on its technology, development, and G&A expenses — more than triple its comparable spending of $1.41 billion in 2021. It expects that elevated spending to persist into 2023.
Coinbase is initially focusing on India, where it plans to hire about 1,000 new employees; and Brazil, where it’s nearing a takeover of 2TM, the start-up that owns the country’s largest cryptocurrency platform.
Those bold moves could widen its moat, but they’ll also throttle its earnings growth as its revenue growth decelerates. That’s not an appealing combination in this challenging market for growth stocks.
4.
There are new regulations looming for Coinbase
Lastly, Coinbase faces tightening regulations for cryptocurrencies around the globe.
Upcoming coins on coinbase november 2021
Source: YCharts
Those declining cryptocurrency prices caused more investors to shun the volatile market. If we look at Coinbase’s growth in monthly transacting users (MTUs) and trading volume, we’ll spot a sequential slowdown in the third quarter followed by a sequential recovery in the fourth quarter.
Metric
Q1 2021
Q2 2021
Q3 2021
Q4 2021
MTUs
6.1 million
8.8 million
7.4 million
11.4 million
Trading Volume
$335 billion
$462 billion
$327 billion
$547 billion
Data source: Coinbase.
However, Coinbase expects both metrics to decline sequentially again in the first quarter of 2022.
Future coins listed on coinbase
Dolev said the “rapid ascent of competing exchanges like Crypto.com” indicates Coinbase will face “looming retail pricing pressure” and need to quickly ramp up its spending on fresh marketing efforts to stay competitive.
3. Slowing growth and rising investments
Coinbase’s revenue surged 136% in 2020 and jumped another 545% to $7.36 billion in 2021. Its net loss in 2019 turned into a net profit of $322 million in 2020, which then skyrocketed 1,025% to $3.62 billion in 2021.
Those growth rates are jaw-dropping, but analysts expect Coinbase’s revenue and earnings to decline by 12% and 95%, respectively, in 2022.
Coinbase’s earnings will plunge as it expands overseas.
New upcoming coins on coinbase
It seems that the biggest names in traditional finance are confident that cryptocurrencies have a bright future.
Namely, BlackRock (NYSE: BLK) made a major push into the crypto space by partnering with the crypto exchange Coinbase (NASDAQ: COIN).
This cooperation will link BlackRock’s institutional clients who already own assets on Coinbase into the Aladdin asset manager suite of tools, which enables BlackRock’s clients to manage their portfolios and asses risks on investments via various approaches the software enables, the crypto exchange announced on August 4.
Crypto democracy
Former BlackRock executive predicted that crypto will have a place in everyone’s portfolio, therefore this move comes as a logical continuation of that paradigm.
