32% drop in the value of shares of Coinbase after the fall in the price of Bitc

[Leviathan.007]

Coinbase shares closed at $ 293.45 after the second trading session. This represents a 32% decrease from $ 429.54 on the first day of trading.
Coinbase, the largest cryptocurrency exchange in the United States, publicly traded its COIN stock on April 14 (April 25) through direct listing on the Nasdaq for $ 381 and quickly crossed the $ 400 mark. Sold. After reaching the $ 381 price level, it improved slightly in the middle of last week, but since then it has been moving steadily downwards.
Prior to Coinbase going public last week, analysts speculated that the exchange's stock price would likely be closely linked to the state of the cryptocurrency market. The events of these few days can confirm the truth of this claim.
It should be noted that last week, the value of the cryptocurrency market fell by about $ 400 billion. Bitcoin fell below $ 50,000 for the first time since early March.

Source: https://decrypt.co/68964/coinbase-stock-32-percent-down-bitcoin-market?&utm_medium=referral&utm_campaign=feed&utm_source=coinmarketcap

[joniboini]

I think the fact that their team sold a lot of their shares is more impactful compared to the crypto market price. It feels like they're trying to blame the market instead of a bunch of people who clearly dump their shares and make some nice profits.

[btc-room101]

Coinbase shares closed at $ 293.45 after the second trading session. This represents a 32% decrease from $ 429.54 on the first day of trading.
Coinbase, the largest cryptocurrency exchange in the United States, publicly traded its COIN stock on April 14 (April 25) through direct listing on the Nasdaq for $ 381 and quickly crossed the $ 400 mark. Sold. After reaching the $ 381 price level, it improved slightly in the middle of last week, but since then it has been moving steadily downwards.
Prior to Coinbase going public last week, analysts speculated that the exchange's stock price would likely be closely linked to the state of the cryptocurrency market. The events of these few days can confirm the truth of this claim.
It should be noted that last week, the value of the cryptocurrency market fell by about $ 400 billion. Bitcoin fell below $ 50,000 for the first time since early March.

Source: https://decrypt.co/68964/coinbase-stock-32-percent-down-bitcoin-market?&utm_medium=referral&utm_campaign=feed&utm_source=coinmarketcap

The BTC rut started a week ago, and IRS subsidiary COIN was 332, now 291, down 17%, the $400 to $291, is that it fell a lot post IPO, down 28%

April 13 is when the BTC rut began, first on the rumor about SEC investigation of BTC fraud, and then on the COAL mining problem in china that shutdown lots of the miner processing btc blocks in china, which led to a $20 to $150 for a transaction on btc, by the weekend it was freefall, and yesterday in ASIA it was decimation

I think that given the big rout happened yesterday on a friday, it will not be until monday USA stock-market time to see the real response from club-fed & team how they react,

Same for COIN, some people bought the dip last night, lots of people will get the news over the weekend, COIN being down 17% from APR13 to now, is about right, especially given during that time BTC went down 24%, BTC-grayscale (Canada-btc-etf) seems to be tracking perfectly down 23-26% over same window of time.

People have to lick their wounds, and remember INSTITUTIONS bought into BTC cuz it was the new CASH, lots of egos bruised, and now they have to SELL the HODL bullshit to the people who own this money lost USD$350B, IMHO it wll be like ACHEGOS, lots of institutions will move, nobody wants to be the bag holder, or last man standing on their evaporation of wealth.

BTC is the new cash, my ass; Just goes to show you that the titans of WallStreet can be  conned ( ripped off, robbed ) just as much as the fish on this forum.

[DaveF]

I am sure there are some BTC people who invested in COIN, but seeing them 1 thing is not the way most stock market investors that have been talking about it see it.

BTC / crypto goes up Coinbase makes money on the trading.
BTC / crypto goes down Coinbase makes money on the trading.

With Coinbase Commerce and their other products no matter what BTC does they make money on every trade that goes through them.
In this case the volatility is good for them since there is more trading thus more trading fees.

-Dave

[arabspaceship123]

That's what makes Coinbase a good business. It's going to make money on trading without worrying about NASDAQ share prices. I'd expect COIN to fall further until it gets higher again.

I am sure there are some BTC people who invested in COIN, but seeing them 1 thing is not the way most stock market investors that have been talking about it see it.

BTC / crypto goes up Coinbase makes money on the trading.
BTC / crypto goes down Coinbase makes money on the trading.

With Coinbase Commerce and their other products no matter what BTC does they make money on every trade that goes through them.
In this case the volatility is good for them since there is more trading thus more trading fees.

-Dave

[Tytanowy Janusz]

It was not because of BTC dump. Coinbase earn on volume and it was decent during dump.

1- Coinbase insiders (including CEO) dumped all their shares:
https://www.nasdaq.com/market-activity/stocks/coin/insider-activity
2- Coinbase is super overvalued:

Currently coinbase is bigger than CME, London stock exchange and many more. Looks unrealistic.

3- Market evaluate future, not presence. The future will be that we will see end of bubble in 2021-2020 and 90% drop in volume - 90% lesser income. If current P/E = 180.21 (6 times more than nasdaq average) it will be 60 times more than nasdaq average in 2020. It needs to dump even further. No matter if btc will continue to dump and will pump to 100k.

[NeuroticFish]

I was expecting, at least at start, to have unrealistic price for Coinbase shares. Also, as bad luck/bad timing, Bitcoin price has also dropped and some think that they're related, hence may selling/not buying the shares.
All in all, with Bitcoin still expected to be in the middle of bull run, bitcoiners have no reason to buy Coinbase shares.
And yeah, the insiders know all this, hence they thought they'll make a quick buck.

[Coin_trader]

I was expecting, at least at start, to have unrealistic price for Coinbase shares. Also, as bad luck/bad timing, Bitcoin price has also dropped and some think that they're related, hence may selling/not buying the shares.
All in all, with Bitcoin still expected to be in the middle of bull run, bitcoiners have no reason to buy Coinbase shares.
And yeah, the insiders know all this, hence they thought they'll make a quick buck.

IMHO, They are high related since coinbase is known for exchange of cryptocurrency, the value of there coins solely depends on the current condition of market and this is what the holders of there coin thinking when crypto market dump. Its a common reaction for stock traders to cut loss in case a sell-off happened in crypto due to its tremendous volatility. Simply stock market traders always playing safe.

[grabpopcorn536]

Coinbase is a stock that represents a cryptocurrency company. Falling Bitcoin price directly impacts transaction demand and a drop in the value of the cryptocurrency market. I am not surprised at the drop in Coinbase's stock value as this directly impacts the crypto market.
Another reason for the drop in coinbase shares is that Biden's taxation caused the stock market to plunge.

[NeuroticFish]

IMHO, They are high related since coinbase is known for exchange of cryptocurrency, the value of there coins solely depends on the current condition of market and this is what the holders of there coin thinking when crypto market dump. Its a common reaction for stock traders to cut loss in case a sell-off happened in crypto due to its tremendous volatility. Simply stock market traders always playing safe.

Even though Coinbase is related to crypto/Bitcoin, its revenue grows not when Bitcoin price is high, instead it grows with the trade volumes, which may be higher when Bitcoin price fluctuates a lot.
However, the relationship is not with Bitcoin price, hence the sell off should not be caused by this. Professional traders should know this, but I don't know if they actually do.

[teosanru]

Coinbase shares closed at $ 293.45 after the second trading session. This represents a 32% decrease from $ 429.54 on the first day of trading.
Coinbase, the largest cryptocurrency exchange in the United States, publicly traded its COIN stock on April 14 (April 25) through direct listing on the Nasdaq for $ 381 and quickly crossed the $ 400 mark. Sold. After reaching the $ 381 price level, it improved slightly in the middle of last week, but since then it has been moving steadily downwards.
Prior to Coinbase going public last week, analysts speculated that the exchange's stock price would likely be closely linked to the state of the cryptocurrency market. The events of these few days can confirm the truth of this claim.
It should be noted that last week, the value of the cryptocurrency market fell by about $ 400 billion. Bitcoin fell below $ 50,000 for the first time since early March.

Source: https://decrypt.co/68964/coinbase-stock-32-percent-down-bitcoin-market?&utm_medium=referral&utm_campaign=feed&utm_source=coinmarketcap

I think there are two explanations to this. One is that coinbase's share was actually already Overpriced after the IPO it opened up above the IPO price too and now it's coming down to the original value of the company. Secondly obviously being a btc wallet it does holds some good Bitcoins and it's primary line of business is Cryptos so with rise and fall in value of Cryptos it's share would obviously react accordingly. But I feel if this type of huge volatility in it's share takes places regularly SEC might have some concerns with this thing.

[Baofeng]

I think the fact that their team sold a lot of their shares is more impactful compared to the crypto market price. It feels like they're trying to blame the market instead of a bunch of people who clearly dump their shares and make some nice profits.

Is this is general practice in IPO that that team behind is the first one to dump their shares? Or this is the first time that we have seen this happened? In not the first case then we shouldn't blame the people behind Coinbase as this has been generally practice in the IPO industry.

And I don't see any correlation though, could be a coincidence that the whole market is really bleeding as investors is selling their shares and bitcoin holdings like pan cake due to negative news.

[philipma1957]

I think the fact that their team sold a lot of their shares is more impactful compared to the crypto market price. It feels like they're trying to blame the market instead of a bunch of people who clearly dump their shares and make some nice profits.

Is this is general practice in IPO that that team behind is the first one to dump their shares? Or this is the first time that we have seen this happened? In not the first case then we shouldn't blame the people behind Coinbase as this has been generally practice in the IPO industry.

And I don't see any correlation though, could be a coincidence that the whole market is really bleeding as investors is selling their shares and bitcoin holdings like pan cake due to negative news.

Many sell 25% of their holdings for tax purposes.

Depending on how the shares are acquired they could be taxable. At the 400+ price they were when they received them.  So holding all the shares could mean you owe tax on 400 and the asset is now 200.

This is a micro managed fud thread. Wait 2 or 3 months and then talk. Not 2 or 3 days.

[Sithara007]

The current Coinbase market cap is $58 billion, which is far lower than what was speculated before the listing. Many of the analysts were predicting that the valuation could be as high as $100-$150 billion. The fall is not justified in terms of Bitcoin prices. BTC went down by only 15% and now seems to have stabilized. This may be actually a good opportunity to accumulate some COIN stocks. When the next Bitcoin bull run occurs, I expect the stock to rally to ATH levels.

[Bitstar_coin]

Was the drop as a result of btc being down or the result of the team selling off out of greed! A show of shame from the team, In a hurry to sell off their shares when they are supposed to vest their shares for a certain period and give confidence to other investors to have a reason to hold their already overpriced COIN, why btc should be the cause of the drop.

[btc-room101]

The current Coinbase market cap is $58 billion, which is far lower than what was speculated before the listing. Many of the analysts were predicting that the valuation could be as high as $100-$150 billion. The fall is not justified in terms of Bitcoin prices. BTC went down by only 15% and now seems to have stabilized. This may be actually a good opportunity to accumulate some COIN stocks. When the next Bitcoin bull run occurs, I expect the stock to rally to ATH levels.

Since a week ago BTC went down 25%, and has now stabilized at -21%.

COINBASE other than being a front for the IRS, is well diversified in all Crypto, so the reason for their loss is not BTC; They lost 17% post IPO, long before the BTC collapse started Apr17; the COINBASE loss during the BTC rut is much lower than the BTC loss.

For equal compare look at the BTC-ETF's which are all down 25%


Yes, two problems here COINBASE insiders cashed out of the ponzi early, and then the entire crypto space took a 20% hit on average.

The good news is REAL privacy oriented alt-coins ( think Monero family & zSnark ) are up, and un-harmed from the carnage.

There is no logic in buying 'COIN' unless you want to own an anchor at sea. There is no reason to own an ETF-BTC, unless you want to own fake paper, that will always diminish in time value.

The problem with COIN is that they're IRS, which means they're 100% KYC, but what is going down is KYC, and what is going up is non-KYC; So anybody tied to COIN, is going to be on the sinking ship.

Don't believe? Look for yourself, this week BTC is down 10%, and Monero is up 20%, on average all 'real privacy coins' across the cyrpto-alt space were running +25%/day, while BTC was being flushed down the toilet over the last two weeks.

[Jacksoon999]

The current Coinbase market cap is $58 billion, which is far lower than what was speculated before the listing. Many of the analysts were predicting that the valuation could be as high as $100-$150 billion. The fall is not justified in terms of Bitcoin prices. BTC went down by only 15% and now seems to have stabilized. But in front of my idea Bitcoin can increase like before....

[Kakmakr]

We all know that the price of the Coinbase shares was going to be hyped and that the price would be inflated when they went public. Why is this such a shock to people that there are a correction now?

The inflated price just meant that the traders would cash in on an opportunity to take quick profits. Yes, the BTC price went down and it has a slight impact on the Coinbase share price.. but it would have happened, even if the price of BTC skyrocketed.

Just wait it out... it will pick up again.    (BTC is not the only token that are listed on Coinbase)

[aoluain]

I think the fact that their team sold a lot of their shares is more impactful compared to the crypto market price. It feels like they're trying to blame the market instead of a bunch of people who clearly dump their shares and make some nice profits.

Is this is general practice in IPO that that team behind is the first one to dump their shares? Or this is the first time that we have seen this happened? In not the first case then we shouldn't blame the people behind Coinbase as this has been generally practice in the IPO industry.

And I don't see any correlation though, could be a coincidence that the whole market is really bleeding as investors is selling their shares and bitcoin holdings like pan cake due to negative news.

Many sell 25% of their holdings for tax purposes.

Depending on how the shares are acquired they could be taxable. At the 400+ price they were when they received them.  So holding all the shares could mean you owe tax on 400 and the asset is now 200.

This is a micro managed fud thread. Wait 2 or 3 months and then talk. Not 2 or 3 days.

I was thinking this while reading through the thread, its way too early to be
theorising on the COIN market movements over its 2-3 day life span.

There are those who bought the shares and still have them, those who bought
and sold before the pull back who link the price of Bitcoin to the value of the share
and were able to make a quick profit.

Almost like when the old ICO's hit their first exchange, massive sell offs when the
prices were high within the first few days.

[Vishnu.Reang]

We all know that the price of the Coinbase shares was going to be hyped and that the price would be inflated when they went public. Why is this such a shock to people that there are a correction now?

The inflated price just meant that the traders would cash in on an opportunity to take quick profits. Yes, the BTC price went down and it has a slight impact on the Coinbase share price.. but it would have happened, even if the price of BTC skyrocketed.

Just wait it out... it will pick up again.    (BTC is not the only token that are listed on Coinbase)

Nowadays most of the tech IPOs are heavily overpriced, and the situation with Coinbase was no different. The P/E is around 180, and the fair valuation would be much lower than that. Also, I have a feeling that they could have gone for the IPO, rather than direct listing. From what I heard, the under-writers were not ready to give them such a huge valuation, and that's the reason they went ahead with the direct listing. It maybe monetarily rewarding for the promoters, but at the same time it will do harm to Coinbase's reputation in the long term.