Things continue to look sorry for the blockchain . Bank of America ( BofA ) psychoanalyst have downgraded Coinbase ’s origin , cite the “ fallout from the FTX collapse . ” The bank run Coinbase parcel to “ neutral ” from “ buy , ” in a Friday Federal Reserve note to the cant ’s investment clients , according tomultiple financialoutlets . BofA also shifted the stock ’s jut target value to $ 50 , down from the $ 77 the analyst placed it at previously . The weapons platform ’s stemma sits at just around $ 45 as of composition , and has fallenmore than 7.5%today alone .
Coinbase isthe second largestcrypto exchange by book , after Binance . In the past 24 - minute , more than $ 1.2 billion has been traded on the platform . But even with such prominent standing , Coinbase is n’t immune from the destabilization brought on by theswift implosion of FTX .
“ We do not think COIN is another FTX , ” wrote BofA senior analyst Jason Kupferberg in the note . But “ diminished confidence in the crypto ecosystem ” means that the the bloodline is n’t a sure stake , in BofA ’s assessment . Kupferberg save that “ contagion hazard ” from FTX could go investors to abandon crypto exchanges and blockchain companies totally .
Coinbase went public on the New York Stock Exchange in April 2021. In the subsequent year and a half, the company’s shares have fallen nearly 90%.Photo:rarrarorro(Shutterstock)
Coinbase alreadywasn’t doing particularly well . And candidly , for their own interest , we can only trust BofA ’s investment customer dilute and run . Crypto has never been a good long - terminus bet , and it sure as shooting is n’t now . An estimated three - quarters of allbitcoin buyers lose money , “ stablecoins ” aredecidedly not , the manufacture isrife with Ponzi schemesand criminals ( and is , itself , essentially justone openhanded pyramid grift ) , and one of the big purveyor of digital coin can go fromsuper bowl adsand celebrity blurb todisappeared investor dollarsin a flash .
What is going on with FTX?
Not too long ago , FTX was the third largest cryptocurrency exchange . Its founder and chief operating officer , Sam Bankman - Fried , was heralded as a novel posterchild for the manufacture — shotgunning to billionairestatus fundamentally overnight . But then , as you ’ve probably listen by now , SBF and his hastily assembledcrypto empire collapsedover the course of a week after mismanaging investor funds and doing a whole ton oflikely illegal things .
FTX ’s crack-up has already cause at least one other crypto company to go off : the lender BlockFi — whileother blockchain platformsalso skin , but refuse FTX exposure . Bankman - Fried is facinga family activity lawsuitand Union investigations from the DOJ and SEC . There remain to be no signs that investors will recoup their funds amidongoing bankruptcy proceedings , and the U.S. is consideringextraditing SBFfrom the Bahamas .
Though there may be a twist in those architectural plan . On Thursday dark , the Bahamian government announced that it hadseized controlof FTX ’s remaining assets — adding in another layer of chaos . The mysterious disappearance of the hundreds of million in FTX funds was previouslychalked up as a “ taxicab ” , but the island land has claimed credit for it , stating that “ it is not the discernment of the [ Bahamian ] Commission that FDM is a political party to the US Chapter 11 Bankruptcy proceedings . ”
The Bahamian and U.S. regulators seem to be sparring over where proceedings surrounding FTX and its liquidation should take place . Though the Bahamas wrote that it would “ engage with other regulators and authorities , in multiple legal power ” to see the best line of military action .
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