Coinbase Dips as Goldman Downgrades to Sell After 75% Rout

    Bloomberg News reports that analysts of Goldman Sachs Group Inc. downgraded Coinbase Global for selling the rating as crypto winter is continuing to take a toll on the digital currency exchange that is struggling.




    More on it

    The firm’s shares dropped by as much as 11% to $56.02 Monday, placing them on track for extending their decline of 75% this year with Bitcoin value now at less than half from what it was six months ago. Analyst of Goldman William Nance cited the constant downdraft related to the crypto prices and the broader dip in the activity levels across this industry.

    In a note written on Monday, Nance also stated that they believe that Coinbase might require to carry out substantial reductions in the cost base as retail trading dries up to stem the resulting cash burn.

    Coinbase became the poster child for the equity market for the surge in digital currency prices last year, with the largest US cryptocurrency exchange seeing the value grow above $75 billion as Bitcoin was found to hit a record high. Since then, the company has been bogged down by a series of issues which also include a drop in revenues and trading volumes as the wider crypto market is enduring one of the worst selloffs in its history. As far as direct listing in April 2021 is concerned, Goldman Sachs is one of the Wall Street banks that had advised for it Coinbase.

    Bloomberg News reports that as of Friday’s close, the value of the company was at less than $14 billion. The company has as many as 20 buying ratings, 5 sell recommendations, and 6 holds as per data compiled by Bloomberg. The share-price target of the average analyst sits at approximately $117, which is the lowest on its record but beyond 100% of where it is currently trading.

    The competition that it faced increasingly from its other counterparts in the industry also weighed on the crypto exchange. At the beginning of this month, Binance.US stated that it is planning to offer zero-fee trading for the largest digital currency and that in the future it has plans to do away with the other fees. Coinbase made an announcement this month that it has plans to lay off 18% of the workforce in an attempt to curtail operational costs that magnified to a record $1.7 billion in the first quarter.



    RELATED ARTICLES

    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    Wheon.com finance tips

    Wheon.com finance tips of 2025: What’s Changing and Why It Matters

    The financial world never stands still, and 2025 is no exception. This year, we’ve witnessed...
    wheon.com finance tips

    Wheon.com Finance Tips: Top Financial Services Trends of 2025

    Wheon.com finance tips are more important than ever, given how fast money matters are changing....
    Smart Gifting Strategies - How to Gift Annuities While Minimizing Tax Impact

    Smart Gifting Strategies – How to Gift Annuities While Minimizing Tax Impact

    For individuals who are fortunate enough to have more savings than they need for retirement,...
    Wheon com

    Wheon com: Your Gateway to Elevated Online Presence with an Effective Guest Post

    Ever feel like your website's voice is lost in the digital crowd? Are you struggling...
    wellhealthorganic.com : remove dark spots on face tang

    WellHealthOrganic.com : remove dark spots on face tang – Natural Remedies for Brighter Skin

    Wellhealthorganic.com : remove dark spots on face tang – Let's talk about those stubborn dark...
    kutty movies.com

    Kutty Movies.com: Your Gateway to Heartfelt Cinema

    Kutty movies.com feels like finding a secret map to a whole world of films, but...
    brand strategy

    Brand Strategy: Your Ultimate Guide To Success

    Brand strategy is the heart of your business, but too many miss the mark, wandering...
    Astronaut Sunita Williams

    Astronaut Sunita Williams: Challenges, Triumphs, and Lessons 

    Space exploration has usually involved humanity, pushing the limits of what's viable. The experiences of...