Coinbase is a digital currency exchange that has suffered exponentially this year. The digital currency trading platform initially went public on the Nasdaq in April of 2021. Since then, it has seen its stock price crash roughly 80 percent in less than two years, and the fall can largely be attributed to the fact that bitcoin – and many other digital currencies – have been falling like crazy since reaching new all-time highs in November of last year.
Coinbase Is “Undervalued” Says Founder
During that time, bitcoin was trading at a whopping $68,000 per unit, though now, the world’s number one digital currency has fallen into the low $16K range. It’s a sad and ugly sight to see, and one that’s likely not going to change for some time.
Brian Armstrong – the CEO and founder of the digital currency exchange – says he’s not too worried about the present situation and he feels bitcoin, Ethereum, and many other leading digital currencies are going to make serious comebacks soon when regulators step into the mix. He commented that tip-top regulation in the United States could potentially help many of crypto’s largest companies make surefire returns from the doldrums.
He further stated that he thinks his own company Coinbase is undervalued, and he believes its stock will eventually return to form. He mentioned in an interview:
I’m so glad that [went public]. I’m glad that we’re helping the market kind of understand crypto cycles better… because that’s kind of been our history as a company, [that] we want to blaze a trail, legitimize the whole industry. We don’t mind being misunderstood or questioned for a few years. We’re playing this for the long term.
The fall of bitcoin and other cryptocurrencies has caused Coinbase to have to cut its staff by roughly 18 percent. Initially, 2022 was going to be a year in which the exchange brought on three times more staff members and grew to exponential peaks, though things really didn’t turn out this way as the last several months have produced one of the worst bear markets in the history of crypto, and what began as a hiring freeze turned into a complete meltdown of the exchange’s employee offices.
Will Things Move More Towards Defi?
With the recent collapse of FTX, some are wondering if centralized exchanges have much of a chance anymore and if defi won’t take over the space, but Serhii Zhdanov – chief executive of crypto exchange EXMO – doesn’t believe this will happen. He stated:
It would be logical to assume that there will be a shift in the market structure in favor of decentralized platforms. Nevertheless, the FTX story could be a reason for regulators to tighten their requirements for crypto companies, which, on the contrary, will lead to stronger centralization to ensure full control from governments.
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