Coinbase Stock Remains Unfazed Despite Citi’s Bullish Calls
Coinbase stock [COIN] has largely mimicked the price action of the broader cryptocurrency market recently. But the powerful rally may have come to a halt.
The shares took a beating and depreciated by 1.45% at $320.82 on Tuesday afternoon trading. This came hours after the multinational investment bank Citi provided a very bullish price target of $415 for the cryptocurrency exchange Coinbase’s shares.
After last week’s performance, many speculated that COIN would soon achieve a “ridiculously high revenue multiple” similar to the likes of Tesla, Amazon, and other high-profile players. However, Citi’s foray into the picture has had little effect on the bullish outlook.
Will Citi’s arrival boost Coinbase’s share price?
Coinbase had previously dodged the more conventional IPO process, which essentially involves intermediaries also known as underwriters (such as banks) to enable the listing. The Brian Armstrong-led company, on the other hand, opted for the direct listing approach or the direct public offering (DPO).
Citi analyst, Peter Christiansen, stated that Coinbase is like “crypto’s general store” and went on to detail the significance of the trading platform in offering cryptocurrency exposure to both retail and institutional players.
Citi believes the company has made substantial strides in expanding its footprint beyond being a traditional crypto exchange and has tapped other areas such as NFTs and cold wallet storage.
Coinbase’s Very Own Regulatory Framework
With regards to regulation as well, Christiansen revealed his bullish sentiment. It is important to note that Coinbase’s relationship with the US regulatory authorities hasn’t been a pleasant one. Its spat with the Securities and Exchange Commission [SEC] over a digital asset lending product sparked fresh debates in the crypto community over regulatory clarity.
But the analyst of the multinational banking giant believes rising regulations could be a positive for the exchange’s “competitive positioning” while comparing the business models that largely depend on markets being unregulated.
Nevertheless, Coinbase is now gearing up to release a proposal detailing how the federal government should monitor the rapidly evolving market. While speaking to Fortune, Coinbase President and COO Emilie Choi highlighted the “paranoia around crypto” and stated that the firm wants to be “treated on an even playing ground as other financial services institutions.” The exec further went on add,
“We want transparency.”
OhNoRipple via https://www.ohnocrypto.com/ @Jordan Lyanchev, @Khareem Sudlow