Coinbase’s Stock Price Plunges as Us Token Listings Probed

It has fallen by more than 84 percent since the exchange went public last year, since when its stock has suffered a drop of more than 84 percent. Since the price of Bitcoin and Ether has fallen over the past few months, Coinbase’s stock has weakened as a result of the fall in prices.

Key Points

 - A greater number of tokens will now be available for trading on Coinbase.
 - A year ago, the exchange released its initial public offering (IPO).
 - There may be a drop in stock price due to an investigation conducted by the exchange.

In the aftermath of the US regulator’s decision to investigate Coinbase, a major crypto exchange, the price of the stock of the exchange has dropped almost 21 percent following the news that it would be investigated.

It has been announced that the Securities and Exchange Commission (SEC), as part of its ongoing investigation into the case, will inquire whether the exchange permitted its customers to trade in digital assets that should have been registered as securities with it.

Currently, Coinbase offers even more tokens for trading than it did in the past, and the SEC has become more scrutinizing of the exchange since then as a result. The company made a request for public information from the SEC last week concerning the types of assets that are considered securities by Coinbase.

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The share price of the exchange has fallen by more than 84 percent since the exchange launched its initial public offering last year. Since Bitcoin’s and Ether’s prices have fallen over the course of these last several months, Coinbase’s stock has been weakened as a result. If a probe by the exchange is triggered, this may result in a significant fall in the share prices of the company.

It has been recently confirmed that securities are not listed on Coinbase’s platform, according to a spokesperson of the exchange.

It has been reported in Bloomberg that people with knowledge of the matter have specified that the SEC’s Enforcement Unit will be responsible for conducting this investigation.

The coinbase has announced an 18 percent reduction in its workforce as a result of a major decline in the crypto market this past month.

In a statement, the exchange, headquartered in the US, said that it is taking this action because the industry is going through a challenging time and it would be beneficial to cut costs during this period.

The company is preparing to lay off over 1,000 employees due to this decision, which may result in a reduction in staff.

It has been decided to reduce the size of the team by approximately 18 percent in a blog post by Brian Armstrong, the chief executive officer of Coinbase.

This decision was made in efforts to ensure that the company will remain strong during economic slowdowns.” Taking the responsibility for hiring for the exchange, Armstrong commented that a lot of people have been recruited in the last few months, which was affecting the firm’s efficiency. A severance package and health benefits were stated as part of the offer to the fired employees by the exchange.

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