Today, the stock of Coinbase Global Inc (NASDAQ: COIN) closed down by 9.18% on Tuesday, December 13, 2022 4:00 PM EST.
Today, after opening the stock of Coinbase at $46.01, the company’s stock hit a high of $46.33, after which it seems to have declined.
So Why Did Coinbase Stock Falling So Much Today?
Due to the following 3 reasons, the stock of Coinbase is falling.
Investors are scared in the market after the fraud of FTX:
- After the fraud of FTX exchange came to the fore, people have lost faith in any crypto exchange.
- People are now resorting to these exchanges to withdraw their money invested and stuck in crypto.
- No one is investing new money in the crypto market like before
- That’s why the condition is the same in Coinbase and people are afraid that it may also get closed like other crypto exchanges.
Apple is implementing new laws for iOS users for its profit:
- Apple is also bringing new laws for how money can be made from crypto market or NFT.
You might have noticed you can’t send NFTs on Coinbase Wallet iOS anymore. This is because Apple blocked our last app release until we disabled the feature. 🧵
— Coinbase Wallet (@CoinbaseWallet) December 1, 2022
Simply put, Apple has introduced new policies to protect their profits at the expense of consumer investment in NFTs and developer innovation across the crypto ecosystem.
— Coinbase Wallet (@CoinbaseWallet) December 1, 2022
We hope this is an oversight on Apple’s behalf and an inflection point for further conversations with the ecosystem. @apple – we’re here and want to help
— Coinbase Wallet (@CoinbaseWallet) December 1, 2022
Coinbase’s poor financial performance is worrying long-term investors:
- Looking at the financials of Coinbase, it is clear that if the company continues to give such performance, then it will be difficult to survive in the coming times.
- Coinbase’s cash position in the first quarter of this year was 7.1 billion dollars and by the end of the third quarter, the cash position has reached 5 billion dollars, it is clear that the company will have to take a few big steps to survive in the long term.
- Coinbase’s long-term debt of $3.4 billion is also due to mature in 2026, but people will need money to return the money they invested in bonds.
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