Coinbase plunges to new lows as cryptocurrency skepticism spreads | Business and Economy News

Shares plunged 23% to $56.04 in New York, a far cry from its first-day closing price of $328.28 last April.

Coinbase Global Inc. shares and bonds fell to new lows Wednesday, signaling investor skepticism about the prospects of the crypto exchange in a bear-market.

Shares plunged 23% to $56.04 as of 10:17 a.m. in New York, a far cry from its first-day closing price of $328.28 when it went public last April. Its bonds also plunged, trading in line with some of the highest-risk junk-rated notes.

Coinbase is “unlikely to return to recent levels of profitability in the near term absent a significant increase in crypto prices or volatility,” Will Nance, an analyst at Goldman Sachs Group Inc. wrote in a note. “We believe COIN’s stock will struggle to outperform in the near term.”

Coinbase falls by most on record after earnings miss, warning on trading volumes

The company reported lower-than-expected revenues yesterday, and warned trading volume and monthly transacting users in the second quarter is expected to be lower than in the first. A new risk disclosure in its filing triggered concerns among some users about the safety of their crypto assets held in custody by the company in the event of a bankruptcy.

Brian Armstrong, Coinbase’s chief…

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