The crypto space has been in turmoil since the collapse of FTX late
last year. The popular crypto exchange, once valued at $32 billion, unraveled
throughout fall 2022 as a growing number of details of alleged fraudulent
activity were revealed.
Global Inc (NASDAQ: COIN) had been one of the remaining options for investors
to easily purchase cryptocurrency as bitcoin roughly doubled from its November
and breached the $30,000 mark once again before falling this week.
Securities and Exchange Commission filed a lawsuit against cryptocurrency
exchange Coinbase Global as the regulator turns up its pressure on the crypto
alleges Coinbase, the largest crypto exchange in the US, violated securities
laws by acting as an exchange, a broker and a clearing agency without
registering with the agency. It also offered and sold securities without
registering its offers and sales, the SEC said.
The two new
complaints from the SEC represent the latest of many recent high-profile
clashes between US regulators and the larger crypto world.
beginning of the year, the SEC has charged 15 different crypto actors with
violating securities laws. US crypto exchange Kraken paid $30 million in fines
to settle SEC charges in February, for allegedly violating securities rules by
failing to register its crypto asset staking program.
for the SEC’s new complaint is that certain crypto assets Coinbase offers to
customers are securities, and therefore under the SEC's jurisdiction.
Coinbase with the unregistered sale of crypto securities through its staking
program and accused the company of “commingling” services separated in
traditional securities markets.
parts of our securities markets, these functions are separate," said SEC
Chair Gary Gensler. "Coinbase’s alleged failures deprive investors of
critical protections, including rulebooks that prevent fraud and manipulation,
proper disclosure, safeguards against conflicts of interest, and routine
inspection by the SEC."
Why the COIN Weekly
Options Trade was Originally Recommended?
and shares in crypto and blockchain-related companies tumbled on Monday after
the U.S. securities regulator sued crypto exchange Binance, another blow to the
Securities and Exchange Commission sued Binance and its CEO Changpeng Zhao for
secretly controlling Binance.US as part of a "web of deception" to
evade U.S. laws, among other charges. Reuters earlier reported that Binance
controlled its US affiliate’s bank accounts, despite claiming it was
The SEC also
said Binance artificially inflated trading volumes on the platform, diverted
customer funds and failed to restrict U.S. customers from its platform and
misled investors about market surveillance controls.
world's biggest cryptocurrency was down 5.45% after falling to its lowest level
since mid-March following the news. Binance's cryptocurrency fell 9.72%.
Coinbase Global Inc (NASDAQ: COIN) disclosed in March that
the SEC has threatened to sue the company over some of its products.
big crypto companies started out in the belief their products did not fall
within the SEC's jurisdiction and say the rules are confusing. They are now
"in a heap of trouble," said James Angel, a finance professor at
better be hiring lots of the best regulatory counsel that money can buy,
because they're going to need it."
of Coinbase were down 9.1% on the news of the SEC's charges against Binance.
The COIN Weekly
Options Trade Explained.....
The following trade was
recommended to Weekly Options USA Members but was unsuccessful due to the stock
falling dramatically before the opening bell.
** OPTION TRADE: Buy COIN JUN
23 2023 58.000 PUTS - price at last close was $4.80 - adjust accordingly.
However, this was followed up with “Additional
appears that the catalysts mentioned in the original recommendation are having
a major negative effect on the share price of Coinbase.
bitcoin is taking a hit this morning.
be beneficial to check out what happens to the weekly options put standing
before trying to enter the trade.
original recommendation of a 58.000 put would be very expensive to enter.
check out the next expiry below opening strike price OR try for a 45.000 put
It appears that most members are waiting to see when
the volatility will ease before entering the trade today. The new entry point
** OPTION TRADE: Buy COIN JUN
23 2023 50.000 PUTS - price at last close was $3.80 - adjust accordingly.
Don’t miss out on further trades – become a member today!
Global, Inc. is among the world’s largest and foremost cryptocurrency
exchanges. The company provides financial infrastructure and technology for the
cryptocurrency economy in the United States and internationally. Coinbase
Global, Inc. was founded in 2012 and is based in Wilmington, Delaware.
began with the idea that anyone, anywhere should be able to buy and sell
Bitcoin and it has grown in tandem with the cryptosphere. Coinbase Global IPO’d
in early 2021 and listed more than 100 million verified individual users less
than a year later. Assets on the platform fluctuate based on the value of the
cryptocurrency market but are counted in the $100’s of billions. The company employs
roughly 5,000 people and serves clients in more than 100 countries. The company
lists more than 200 assets for trading and over 350 for custody purposes.
is led by Bryan Armstrong. Armstrong is a co-founder, Chairman of the Board,
CEO, and president of Coinbase and the driving force behind the business. One
of his many innovations is making Coinbase Global, Inc a “remote-first”
business which means there is no official corporate headquarters. The company
operates offices in 12 cities around the world, however, and leases space when
there is a concentration of employees in a new area.
Global, Inc offers a range of tools for traders and investors. The company
offers a primary financial account in the crypto-economy for businesses and consumers
alike. The primary account, often referred to as a wallet, allows owners to
buy, sell, trade, send, and receive cryptocurrencies supported by the platform.
Coinbase Global supports well over 200 different cryptocurrencies and the
number is growing so the potential application is very broad. New users may
also earn free cryptocurrencies by participating in the company’s education
program. The program informs users of new cryptocurrencies and rewards them for
Further Catalysts for the COIN Weekly Options Trade…..
filed in a federal court in Washington, D.C., are the latest in a string of
enforcement actions brought by the agency in a bid to curtail the
cryptocurrency industry, which SEC Chair Gary Gensler has described as
"the wild West."
crackdown has prompted some crypto companies to increase compliance, spike
products, and expand overseas, moves that some marketwatchers said would likely
be accelerated by this latest action against the world's largest crypto
is yet another targeted attack that is devastating in the crypto ecosystem.
Pretty soon, the SEC won’t have anyone left to sue," said John Reed Stark,
a former chief of the SEC's Office of Internet Enforcement.
statements, Binance said it had been cooperating with the SEC's probes and had
"worked hard to answer their questions and address their concerns"
including by trying to reach a negotiated settlement.
its complaint today, the SEC abandoned that process and instead chose to act
unilaterally and litigate. We are disheartened by that choice," the
move to abandon a settlement and move to litigate underscores the
aggressiveness with which it has approached the cryptocurrency industry, which
the agency says has violated its rules on trading and securities issuance.
Global shares are
trading lower after the SEC prosecuted Binance over U.S. securities
Needham analyst John Todaro reiterates
Coinbase with a Buy and a $70 price target.
dug deeper into COIN's May key metrics and believes that the retail percentage
of total volume will be lower in Q2 FY23 than in Q1 FY23. While Q1 FY23 saw a
return in retail appetite as momentum increased and meme coins saw a sudden
resurgence, this appears to have been short-lived.
saw BTC & ETH as a percentage of total volume reach 64%--the highest level
yet in 2023 indicative of further retail 'exiting' from the space, and would
expect the retail mix of total volume to decline quarter-over-quarter (unless
June sees an unexpected bump).
that volumes declined only 23% month-on-month, but alt-coin volume declined to
its lowest level in FY23, indicating more erosion in retail.
modest ETH staking deposit withdrawals over the month, while Lido and Binance
saw increases. USDC market cap is grinding lower.
writes that DEXs are a real threat to Coinbase (and other centralized
exchanges) as DEXs are, to varying degrees, 'decentralized' any user can create
a market on the exchange. As such, DEXs offer significantly more assets for
trading than Coinbase.
notes that COIN is ceding share, primarily to 'DEX' Uniswap. A decentralized
exchange (DEX) is a digital currency exchange that allows users to buy crypto
through direct, peer-to-peer cryptocurrency transactions all over an online
platform without an intermediary. Uniswap is also a cryptocurrency.
worsening volume picture is not the only cause of concern for Coinbase. Volumes
across the industry have declined, and while we saw a modest uptick in Q1 FY23,
downward volume trends continued in Q2 FY23.
brought his Q2 FY23 revenue estimates down to reflect the lower volume and mix
share of retail vs. institutional after the alt-coin activity declines. He also
lowered his FY23 revenue and EPS estimates.
is cautiously optimistic about an improving landscape in late FY23 and FY24 on
1) the halving in Q1 FY24 bringing back momentum, 2) easing regulation (draft
bill put out this past week would term various crypto assets as commodities),
and 3) easing monetary policy.
According to the issued ratings of 26 analysts in the last
year, the consensus rating for Coinbase Global stock is Hold based on the
current 6 sell ratings, 11 hold ratings and 9 buy ratings for COIN. The average
twelve-month price prediction for Coinbase Global is $61.48 with a high price
target of $110.00 and a low price target of $27.00.
Global has a market cap of $14.91 billion, a price-to-earnings ratio of -6.23
and a beta of 2.58. Coinbase Global has a 52-week low of $31.55 and a 52-week
high of $116.30. The company has a quick ratio of 1.04, a current ratio of 1.04
and a debt-to-equity ratio of 0.60. The company’s 50 day moving average is
$60.47 and its 200 day moving average is $55.19.
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