- The cryptocurrency exchange's stock, Coinbase, fell more than 8% as of Monday's close, marking the lowest level since April 2021 amid the crypto market facing skepticism since the collapse of FTX.
- A drop was expected, over the last four trading sessions, Coinbase's value has decreased by more than 25%, taking it below the $10B threshold.
- Coinbase reported a loss of $545m earlier this month and a third-quarter revenue decline of more than 50% from the same period last year. The cryptocurrency exchange reduced its personnel by 18% in June. Meanwhile, Ethereum lost almost 6% and bitcoin plummeted more than 3% on Monday to its lowest level in more than two years.
Why it matters
Coinbase is not another FTX, according to analysts, but it still faces challenges due to widespread pessimism about the bitcoin market. Liquidity withered, users requested withdrawals, and rival exchange Binance tore up its agreement to purchase the company, driving FTX from a $32B valuation to insolvency.
