Coinbase scores a sponsorship dealCryptocurrency exchange Coinbase partners up with the National Basketball Association (NBA) to spread the word of crypto to basketball fans.
Coinbase just became the exclusive crypto partner of the NBA with a multi-year sponsorship deal, and the whole idea is to use the massive platform to educate the world on crypto with “unique content, innovations, activations and experiences”. Kate Rouch, chief marketing officer of Coinbase, said:
The freedom to participate and benefit from the things you believe in is at the heart of Coinbase’s mission. Nobody believes this more than NBA and WNBA fans. We’re proud to become the Leagues’ official cryptocurrency partner. As part of the partnership, we will create interactive experiences to engage with the NBA and WNBA’s incredible community and athletes around the world.
An average of 1.6 million people watched NBA games during the 2019–2020 season, so that’s a lot of potential traders to bring to the crypto side of life.
Facebook partnership gives crypto a boost to April highsCoinbase has been rocketing since announcing its new NFT platform, extending its gains by another 4.19% on Tuesday after getting tapped by Facebook to help on its new crypto project.
Online crypto exchange Coinbase is having by far its best month ever, up nearly 35% as the crypto market reaches new highs. The exchange ended the day up for four sessions in a row, gaining over 23% since announcing plans to launch its own NFT platform last week. Facebook (FB) gives the stock a boost of over 4% on Tuesday after the social media platform launched its Novi cryptocurrency digital wallet so its users can make digital, cross-border transactions – and chose Coinbase as its custody partner. In the second quarter, custodial services fees were up 35% to £31.7 million, but that number will certainly go up with this new deal.
Coinbase ended Tuesday at $305.63, its highest closing price since April 21, about a week after its IPO.
Coinbase calls for a dedicated crypto regulatorCrypto exchange Coinbase asks Congress to block the SEC from regulating crypto, arguing that a dedicated regulator should do the job.
Following its tiff with the Securities and Exchange Commission (SEC) over its lending product, Coinbase has said that digital assets need a specific regulator, citing the fragmented nature of current securities laws that are too outdated to suit the current market. The crypto platform wrote:
To avoid fragmented and inconsistent regulatory oversight of these unique and concurrent innovations, responsibility over digital assets markets should be assigned to a single federal regulator.
Faryar Shirzad, Coinbase’s chief policy officer, said that “feedback on the Hill has been welcoming, very welcoming”, so watch this space.
Coinbase lifted 5.36% on Thursday to close at $260, its highest closing price since September 7.
Coinbase NFT already taking the market by stormCoinbase’s foray into NFTs is already proving to be a popular new feature, with over one million signups to the waitlist in just the first day.
Yesterday, news hit that popular crypto exchange platform Coinbase is poised to launch its own NFT marketplace as demand for the digital asset class soars – the NFT market boomed to over $10 billion in transaction volume in just Q3. The platform debuted a waitlist for the new product offering, which can be expected by the end of the year, and in just 24 hours, signups for the list have topped one million.
Coinbase jumps on the NFT bandwagonCryptocurrency exchange Coinbase is poised to launch a marketplace for non-fungible tokens (NFTs), just one day after competitor FTX did the same and a few months after Binance launched its own marketplace. Initially, the marketplace will support Ethereum-based NFTs exclusively, but the company has plans to expand into other chains in time. Coinbase VP of Product Sanchan Saxena, who is heading up the project, said:
Our ambition with Coinbase NFT is to allow everyone to benefit from their creative spark; to contribute to a future where the 'creator economy' isn’t a small subset of the 'real' economy, but a central driver.
The NFT market boomed to over $10 billion in transaction volume in just Q3.
Coinbase enjoys the crypto rideShares of crypto exchange platform Coinbase spent last week on the up and up as many of the biggest cryptos lifted for the week – both Bitcoin and Ethereum lifted over the weekend and over the past week, and Coinbase has joined in the fun and enjoyed a jump of over 10% at same time.
Also over the weekend, Cathie Wood’s Ark Invest said it has lowered its stake in the company, selling its first bought of shares since the exchange went public in April – the money managing firm sold 98.427 shares worth around $25.5 million.
Coinbase jumps on analyst optimismShares of crypto trading platform Coinbase lifted 4.3% after Goldman Sachs said it expects top-line earnings in November.
Goldman Sachs sees crypto platform Coinbase topping analyst estimates on the revenue and trading volume front in Q3, based on the highly volatile action Bitcoin has seen recently. Oppenheimer analyst Owen Lau wrote:
With all the news driving volatility, trading volume has substantially improved in late August and September.
Lau is looking for an 18% upside in trading volume and an increase of 11% to total revenues after this quarter's heightened trading volume. Coinbase ended Wednesday up 4.29% at $250.38.
Coinbase prepares to collaborate not hateCoinbase is going on a hiring spree, looking to boost its legal and compliance team as it faces a regulatory onslaught and prepares a new proposal.
Coinbase and the Securities and Exchange Commission (SEC) have had a strenuous relationship recently, but it looks like Coinbase is building its team out to promote collaboration with the regulator. The SEC recently threatened legal action against the exchange for its new Lend product, which has now been delayed, and Coinbase is looking to hire 350 communication, legal, and compliance professionals to help protest against any further onslaught.
The crypto platform is actually trying to collaborate with the SEC, and the new team will be to help Coinbase prepare a proposal for a regulatory framework for crypto currencies – which regulators have been struggling to come up with for themselves as the market soars in popularity and mainstream adoption. CEO Brian Armstrong said:
Coinbase wants to be an advisor and a helpful advocate for how the U.S. can create that sensible regulation. In fact, there's a proposal that we're putting out at the end of this month, or maybe early next month, that is our proposed regulatory framework.
Despite the regulatory attack, Coinbase still seems to be attracting investors, and Ark Invest’s Cathie Woods just picked up another $25.87 million worth of the stock.
Spratt / Unsplash
Coinbase crumbles to SEC pressureAfter getting a sharp warning from the SEC against its upcoming crypto product, Coinbase has cancelled its plans for the launch.
Earlier this month, the U.S. Securities and Exchange Commission threatened legal action against Coinbase if the crypto exchange went ahead with the rollout of its latest Lend product. Lend was designed as a new offering that lets users earn interest on their digital assets, but in the wake of the regulatory backlash Coinbase has quietly announced that the rollout has been cancelled. The update read:
As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program announced below. We have also discontinued the waitlist for this program as we turn our work to what comes next.
The stock ended Monday down 3.53% amidst a broader market sell-off.
Jp Valery / Unsplash
Coinbase jumps into crypto derivativesCrypto platform Coinbase wants to start offering crypto futures and options trading.
Not long after sharing its plan to raise $1.5 billion in a junk bond offering, Coinbase has also applied to the National Futures Association to operate as a futures commission merchant. The lack of futures and derivatives trading has grown to be an increasingly large gap in its product offerings, especially as the Bitcoin (BTCUSD) futures market is growing so rapidly, and Coinbase is in the process of expanding its offerings.
No confidence in CoinbaseMoody’s initiates coverage on Coinbase at junk levels in light of strong competition and a tough regulatory environment.
Moody’s analysts initiate coverage on the recently public crypto brokerage with junk status despite its promising fundamentals. Moody’s analysts Fadi Abdel Massih, Donald Robertson and Ana Arsov, wrote in a report:
Coinbase’s financial profile suggests investment grade credit strength, but for now the uncertain regulatory environment and fierce competition offset these strengths.
The analysts also said that the stock is too vulnerable to the volatile crypto currency market. Prices ended the day down 2.21% on Tuesday.
Coinbase cashes in.Coinbase looks to raise $1.5 billion via a debt offering, prices drop 2.21%.
Less than a week after the Securities and Exchange Commission threatened to sue Coinbase for its latest lending product, the crypto exchange platform is looking to raise $1.5 billion in a junk bond offering. The new capital will be used for product development and potential mergers and acquisitions, and a successful bond sale would be a positive sign for the overall adoption of crypto into the mainstream. Mark Palmer, an analyst at BTIG, offered his opinion:
You are going to see more cryptocurrency companies tapping the capital markets and receiving a warm response. There aren’t many ways through which fixed-income investors can access the cryptocurrency markets. Now we have one more.
The stock ended the day down 2.21% at its lowest price since mid-August, not helped by a broader decline in the crypto market.
Damir Spanic / Unsplash
Coinbase comes under fireCoinbase is trying to diversify its product base with its new digital asset lending offering, but the Securities and Exchange Commission (SEC) threatens to sue the brokerage if it rolls out the new product.
The SEC plans to pursue legal action against Coinbase if the crypto exchange goes ahead with the rollout of its latest Lend product. Lend was designed as a new offering that lets users earn interest on their digital assets, and while it hasn't yet officially come to market there is a waiting list of interested candidates. Coinbase was apparently surprised by the decision, and joins a long list of crypto related firms that are struggling with unclear regulation and penalties out of the SEC. Coinbase took to Twitter to speak out against the “sketchy behavior”, demanding the industry is given clearer rules to follow:
Here we are, we're being threatened with legal action before a single bit of actual guidance has been given to the industry on these products. If we end up in court we may finally get the regulatory clarity the SEC refuses to provide. But regulation by litigation should be the last resort for the SEC, not the first. Our door remains open. Hopefully the SEC steps up to create the clarity this industry deserves.
Coinbase rides the crypto comebackCoinbase is lifting along with the crypto market – which is approaching a market value of $2.3 trillion – and is predicted to breakout if Bitcoin can maintain the $50k mark.
Online crypto trader Coinbase is climbing back up on the back of crypto comeback, though prices are still trading nearly 30% below their IPO price of $381. The crypto market has been on a bull run of note since the market took a turn for the positive on July 21, and on Friday Bitcoin (BTCUSD) surged past $51k while Ethereum (ETHUSD) popped past $40k for the first time since May. If the crypto market can keep its gains, analysts see the stock rocketing back up past $300.
Prices closed Friday at $278.44.
Coinbase offers ETH2 staking rewardsCrypto exchange platform Coinbase is launching ETH2 staking rewards for its customers in the U.K. and Germany.
Coinbase announces that it will reward customers in the U.K. and Germany for staking their Ether in Coinbase with a 5% interest rate. Coinbase European general manager Marcus Hughes says:
We have witnessed a huge rise in customers purchasing Ether in recent months… We believe that, in simplifying staking, which is very complex to do individually, we can play a role in widening access to this key part of the crypto economy.
Executium / Unslplash
Coinbase freaks out its customers againCoinbase admits to mistakenly sending security alert emails to thousands of customers over the weekend, who got understandably skittish that another hack had taken place.
Coinbase has admitted that over the weekend 125,000 customers mistakenly received notifications of changed security settings – a lot of whom began to worry they’d been hacked. Thankfully, it was just the result of an internal error, but it’s not a good look considering the backlash the online brokerage is facing for poor customer service following its last hack four months ago.
It seems to be stepping up in that regard though, reportedly offering $100 in Bitcoin to some of those affected.
Bundo Kim / Unsplash
Coinbase goes on a spending spreeCoinbase is on a spending spree, splurging $500 million on crypto with plans to invest 10% of all future profit into digital assets.
Popular crypto trading platform Coinbase has received the A-OK from its board to add $500 million in crypto to its balance sheet with a hopes of adding to that investment over time – becoming the first public company to hold Ether (ETHUSD), Bitcoin (BTCUSD), and DeFi tokens. The recently public company will also invest 10% of all its future profits on digital assets, making good on its promise to make long-term investments in the sector.
The news comes just after the crypto trading platform struck a deal with Mitsubishi UFJ Financial Group (MUFG), a Japanese bank with 40 million customers, in a bid to get a foothold in the Japanese market – where blockchain tech is seeing increasing adoption. If the partnership turns out a success, Coinbase will look into further partnerships with banking institutions in the region.
Coinbase ended Thursday up 1.58% at $248.24, still down over 42% from its IPO day peak of $429.54.
Winter may be coming, but Coinbase is preparedCoinbase is prepared if the crypto winter comes, amassing a $4 billion war chest to see it through any decreased crypto activity.
One of world’s largest cryptocurrency exchanges, Coinbase, has built up its in case of an oncoming “crypto winter” – which refers to a persistent bear market, the likes of which we saw in 2018 and 2019. The recently public company is making sure it’s as crypto-crash resistant as possible, stockpiling a $4 billion cash pile that will see the company through any sustained declines in crypto trading activity as well as any higher operating costs brought on by regulatory obstacles. The platform has also conducted a bunch of stress tests to make sure they’re prepared for any eventuality.
Despite a depressing few months for crypto fans, which saw $1 trillion wiped off the market value at one point, Coinbase CFO Alesia Haas says that there was no one event that has prompted the company to build its cash reserves, just a “prepare for the worst” mentality, saying:
We want to ensure that we maintain those cash reserves so that we can continue to invest and continue to grow our products and services in the event that we go into a crypto winter.
Image: Kinkate / Pixabay
Coinbase survives the crypto crashAfter a volatile period for the crypto world, exchange platform Coinbase reports its latest quarterly earnings, topping expectations on both the top and bottom lines and reporting a twelve-fold increase in revenue: sending prices up just over 3%.
Shares of crypto exchange platform Coinbase lifted just over 3% on Wednesday following its second quarter earnings, which crushed expectations. The company reported earnings per share of $3.45 (excluding stock based compensation benefits) on revenue of $2.23 billion, compared to the $2.33 in earnings per share on revenue of $1.78 billion that analysts were expecting. Net profit in the quarter was up nearly 5,000% from a year before, coming in at $1.6 billion, and the company generated over $2 billion in net revenue, despite the crypto crash that at one point erased nearly $1 trillion off the market value.
As a crypto exchange platform, Coinbase’s future is tethered to the fortunes of major digital tokens like Bitcoin and Ethereum, for which trading volumes have fallen significantly, with Bitcoin down over 41% during the quarter. The company offered no formal guidance going forward, but added that trading volumes are expected to fall even further in the third quarter, which could impact prices.
The stock will likely continue to be volatile given multiple broad factors, mostly related to the regulatory environment.
wrote Wedbush analyst Moshe Katri.
Prices gained 3.24% on Wednesday, but Thursday saw things take a turn for the worse, trading down 7.87% by close.
Coinbase comes under fireCoinbase is under fire again after getting hit with another lawsuit over its ‘misleading’ Nasdaq listing, but a wave of crypto recovery sends shares up over 9% on Monday nonetheless.
Coinbase was the first major digital asset-based organization to go public with its April 14 listing, which saw prices reach an all-time high of $429, but since then the stock has been steadily (and not-so-slowly) declining and has lost more than half its value. Turns out, investors aren’t happy. They’re so unhappy in fact, that they’ve filed a class action lawsuit against the platform for intentionally misleading its stakeholders regarding its resilience to crypto market fluctuations.
As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s securities, plaintiff and other class members have suffered significant losses and damages,
claimed the lawsuit against the crypto firm.
Coinbase still ended Monday up 9.13% on the back of Bitcoin’s recent return to the green. After a bear run of note, the crypto market has been quietly building itself back up the last few days, and on Monday Bitcoin surged past $40,000 yesterday for the first time since June 17. Crypto-related stocks went along for the ride, and mining firms MicroStrategy (MSTR) and Bit Digital (BTBT) were among TradingView’s top gainers after lifting 26% and 110% respectively.
The gains didn’t stick around too long though, and Coinbase ended Tuesday down just over 4% as the buzz died down.
The biggest private crypto deal everBig news for crypto. FTX exchange reports the biggest private crypto deal ever when it raised $900 million in new funding from investors including Coinbase Ventures, resulting in a $18 billion valuation.
Crypto firm FTX, which is one of the top five crypto exchanges based on volume, just made history with the biggest private crypto deal ever. Whilst most of the top exchanges list Ethereum as the top crypto by volume, FTX reports Bitcoin as its most traded asset, but is also renowned for its wide array of crypto-derivatives. FTX has quickly become one of the main opponents to big dogs like Coinbase and Binance, and its annualized revenue is said to be nearly $1 billion.
The exchange has just raised a whopping $900 million from over 60 investors, valuing the business at $18 billion - the largest private equity round in crypto history, and nearly double its previous record. FTX was worth just $1.2 billion a year ago. Investors included tech and crypto industry leaders such as Coinbase Ventures, private equity group Thoma Bravo, Sequoia Capital, Softbank, and Circle. The deal signals positive and continued investor demand for the crypto sector despite the losses the industry has seen recently - nearly $90 billion was wiped off the crypto market in just 24 hours on Tuesday on the back of mounting regulatory concerns and the fast-spreading Delta variant, adding to a crash that has been bringing down the market since early May.
The two year old company has over 1 million users and an average of around $10 billion in trading volume each day. FTX has also got hot celeb couple Tom Brady and Giselle Bundchen as its backers, so that has to say something, right?
Crypto trading volumes seriously sufferThe pressures of the last few weeks are starting to take their toll as trading volumes at the world’s biggest crypto exchanges crash over 40% in June.
Cryptocurrencies are not in a good way after spending the last two months navigating a comedown that’s wiped out around half the value of the world’s largest tokens, driven by international attention over the environmental effects of crypto mining and a worsening crackdown in China. Last month saw Bitcoin, the largest cryptocurrency, lose over 6% through the month and fall to its lowest price since December at $28,600 on June 22, when its highest daily volume of $138.2 billion was down 42% from its May intra-month high. Ethereum lost 15%, while meme currency Doge sank over 20% during June.
The losses have diminished volatility, pushing down trading volumes. The world’s major crypto exchanges – including Coinbase, Kraken, Bitstamp and Binance – saw trading volume sink by over 40% in June, according to CryptoCompare data. The report cites China as a major catalyst, arguing that its latest efforts to crackdown on the industry have had a bigger impact than ever before. The restrictions across the country have included banning financial firms from offering crypto services to clients or customers, and shuttering mining operations that accounted for up to 60% of all of Bitcoin mining power. Trading volumes in June fell 42.7% to $2.7 trillion, and derivative volumes were down 40.7% to $3.2 trillion.
The Chinese crackdown has caused a lot of fear, which is showing up in markets. The digital asset ecosystem got punched in the face, so it’s currently up against the ropes versus fighting in the middle of the ring. Typically when you have large sell-offs, participants are quite fearful and pull back their chips.
said Teddy Vallee, chief investment officer at Pervalle Global.
Coinbase goes remoteCoinbase sinks on news that it will close its main San Fran office in 2022, and prices close down 11.40% for the week.
Coinbase, the biggest cryptocurrency exchange in the U.S., announced plans to close down its San Francisco headquarters next year, and letting employees continue to work remotely. The company posted the news on its official Twitter account – but it didn’t come completely out of the blue, given that CEO Brian Armstrong last year confirmed on the Coinbase blog that the company would be a remote-first working space post-COVID.
It might sound counter-intuitive, but Coinbase sees the closure of the San Francisco headquarters as a move in consolidating the decentralized nature of its workforce, so that no one office location holds more importance than any other. It also means that career opportunities will be decided based on how you work, not where you work, which it hopes will open up a whole new talent pool.
Decentralization is a key tenet of crypto, so it’s in keeping with the nature of the company. Silicon Valley has seen growing momentum for companies letting employees permanently work from home, with giants like Facebook, Twitter and Salesforce all saying employees can remain remote in the post-pandemic world and cancelling office leases as a result. Long-term, the vision is to have one floor of office space across 10 cities (as opposed to 10 floors in one city).
“This change was initiated by social distancing requirements, but we’ve found silver linings: some employees are finding work from home to be a welcome change, and overall it’s been less complicated to transition than we would have expected,”
wrote CEO Brian Armstrong in the original blog post. He added:
“But for all of us, being remote-first requires a mindset and behavioral shift. It means that the employee experience should be the same, whether you’re in an office one day a week, five days a week, or never.”
Coinbase listed on Nasdaq a few weeks ago, opening at $381, but had a bad few days following the IPO, losing over 30% to close the week at $263.70. It’s earnings due on Thursday should have investors waiting with bated breath.
Tax proposals push Coinbase downwardsCoinbase falls for its fifth day in a row as Joe Biden’s proposed tax plan for the wealthy sends crypto stocks crazy, while analyst coverage takes a bearish direction.
Crypto stocks were all over the place on Friday, after Joe Biden proposed almost doubling the highest long-term capital gains tax rate from 20% to 29.6% for anyone who makes over $1 million in income in an effort to overhaul the U.S. economy. Investors are worried that it might curb investment into digital assets, and the tax hike would also affect crypto whales sitting on large amounts of unrealized gains (not that we’re jealous or anything). The overall crypto market lost over $200 billion in Friday’s trading after more details of the proposed tax hike were confirmed – man, people really don’t like tax hikes. The recently listed Coinbase was down over 10% towards the end of the week as a result, with almost every major currency crashing. In Friday’s trading Bitcoin slumped below the $50k mark for the first time since early March, Ethereum took a dip of 3.5%, and XRP spiralled 6.7%.
Analyst Dan Dolev at Mizuho also became the first analyst to initiate non-bullish coverage on the stock, setting a neutral rating for the cryptocurrency exchange and a stock price target 6% lower than current levels.
However, there are some bulls out there who aren’t so worried. Firstly, the tax bill is only a proposal at this point, and is expected to churn up some serious resistance from the Republicans in Congress. It’s a 50-50 Senate, and given the Republicans have just proposed a $500 billion infrastructure package, it’s safe to say both parties will be facing pressure to negotiate down. Even if the bill were to pass, it's unlikely to actually affect more than 1% of taxpayers. In 2018, of the 153 million that filed a tax return, only about half a million reported an income of over $1 million. Within that 1%, crypto holders with large unrealized long-term gains in digital assets might want to cash out before the tax hike kicks in.
“I think ultimately at the core, it’s a spot-driven sell-off, with the market having been quite vulnerable to pullback after a parabolic price surge in Q1 2021,”
suggested Joel Kruger, currency strategist at LMAX Digital.
Coinbase IPO pops and dropsThe crypto world is abuzz as crypto giant Coinbase goes public under the ticker COIN. Prices pop and drop, but end the day on a high.
The platform went public in a direct listing on NASDAQ, but rejected the traditional IPO process of using investment banks to manage the deal. Nasdaq provided a reference price of $250 the night before, but because it’s a direct listing no shares changed hands at that price. Shares opened on April 14 at $381 (well above its reference price) and quickly shot up to a whopping $429.54, before closing at $328.28: giving the exchange an initial market cap of $85.8 billion.
The company was founded in San Francisco in 2012 with the aim of “building the crypto economy - a more fair, efficient and transparent financial system enabled by crypto.” And it seems to have done it, with revenue for Q1 2021 already higher than its entire 2020 revenue (847% higher, to be precise.) Sure, that’s driven in part by the crazy ride that crypto has been on over the past few months, but Coinbase has been a big part of that journey. It pioneered remote working (the company doesn’t even have an official physical headquarters), and over the past decade has become the biggest cryptocurrency platform in the U.S., specializing primarily in Bitcoin and Ethereum.
Its last formal valuation was in 2018 when it accepted $300 million in financing and got a valuation of $8 billion. Things have changed a bit since then: private market valuations for the company stood at around $68 billion as of Q1 and there have been rumors that its market cap could soon top $100 billion after the company reported stellar Q1 numbers last week.
Not only did revenue increase ninefold from $1.28 billion in the whole of 2020 to a whopping $1.8 billion in just Q1 of 2021, and verified users jump from 43 million in December 2020 to 56 million in March, but trading volumes for the quarter also rose to $335 billion. If Coinbase carries on at its current Q1 rate, its revenues could reach $7.2 billion for FY 2021 - but there are still those out there advising caution – mainly Bitcoin bears who think the currency has reached its peak.
Either way, the listing is a watershed moment for the crypto industry, and Wedbush analyst Dan Ives thinks that
Coinbase is a foundational piece of the crypto ecosystem and is a barometer for the growing mainstream adoption of Bitcoin and crypto for the coming years.
Not everyone is so gung-ho.
Investing in Coinbase is not for the faint of heart, as the business — and the stock — will likely see dramatic, potentially protracted, swings
warned Lisa Ellis of MoffettNathanson. She’s still bullish though, initiating coverage of Coinbase with a Buy rating and a $600 one-year price target, equating to a market cap of $123 billion.
What the listing does do, however, is place cryptocurrency firmly on the mainstream map, and this is why the IPO is so important – no matter how well (or otherwise) the stock itself eventually performs. Coinbase’s debut
will mark the first official juncture between the traditional financial avenue and the alternative crypto path
wrote a senior analyst at Swissquote, Ipek Ozkardeskaya.
As such, a successful addition to Nasdaq should act as endorsement of cryptocurrencies by traditional investors.