Behind the partnership announcement with investment giantCoinbase shares are demonstrating unusual trading volume.
During the months of crypto market downturn, Coinbase has seen several scandals, most recently with the exchange’s former manager being arrested for insider trading and the SEC investigating the platform’s listingsuntil news that the company would sell users’ geolocation data to the United States Immigration Agency.
But the actions of Coinbase (COIN) they were already taking a hit from earlier this year, which was even more apparent in June when the company decided to lay off almost 20% of its workforce as a “guarantee” that the company would stay healthy. during the crypto winter.
The total stock drop since the beginning of 2022 had been more than 80% for the month of June, causing many investors to fail to see value in Coinbase, especially “if the cryptocurrency markets do not stabilize”, as had been said. suggested JPMorgan.
After a small uptick, due to sell recommendations made by major financial groups such as Ark Investmentstock market shares fell again, with little prospect of improvement.
The 52-week range for Coinbase shares saw values of $368 to $40.
However, the partnership with one of the largest investment funds of the traditional market, BlackRock, could pull Coinbase shares out of the fall, as is being observed this Thursday (04).
COINS opened trading today up about 35% from the previous day’s close of $80.81. The announcement caused such a large daily swing (from $90.31 to $116.30) that exchanges stopped coin trading for a few minutes, until the volatility was not so unusual.
While it is impossible to predict what the future will bring for Coinbase, especially given the dissatisfaction of many regarding the partnership with BlackRock, trading today was promising for the company’s stock.