US banking giant Goldman Sachs has lowered Coinbase’s price target to “sell”, cutting the price target to $45.
Shares of Coinbase exchange (COIN) have been downgraded by one of the world’s largest banks Goldman Sachs from “neutral” to “sell” standard after the entire crypto market suffered a severe downturn, affecting the underlying business of the exchange throughout the first two quarters of 2022.
Goldman analyst William Nance said the reason for this drop in credit is due to Coinbase’s extremely dismal business days in the past. William Nance further revealed that Coinbase will need to significantly eliminate its cost base to prevent cash burn due to the exchange’s retail trading activity drying up.
According to Bloomberg, COIN stock still has 20 “buy” recommendations, 6 “hold” and 5 “sell” recommendations as of June 27. Stocks with a “hold” rating are generally expected to move more closely and positively with the overall financial markets, and “selling” is synonymous with a call for investors to pull back or liquidate the asset are owned.
COIN began trading on the Nasdaq stock exchange in April 2021 and quickly exceeded its pre-listing reference price, eventually peaking around the region near $400. At those prices, COIN has a fully diluted market cap equivalent to $100 billion.
However, since November 2021 when Coinbase first faced a 75% drop in net profit in a quarter, COIN has officially entered a spiral of crisis, falling 84% to less than $58 for the year to present day.
Overall, Goldman Sachs’ move is no different from FUD continuing to impact Coinbase, especially during this difficult and sensitive period for the exchange. Because Coinbase is already seen as a publicly listed company, any credit score becomes vital to the business.
No intimate partnership is truly sustainable. Although Coinbase has become the first customer for Goldman Sachs’ Bitcoin mortgage, Goldman Sachs is still willing to “make it difficult” for Coinbase.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Foxy
Coincu News
Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…
The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…
UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…
a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…
Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…
Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…
This website uses cookies.