Coinbase

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Coinbase is a leading cryptocurrency exchange that serves over 100 countries worldwide. It’s a remote-first company, meaning that it has no physical headquarters, and its 3,700+ employees are based around the world.

Founded in 2012 by former Airbnb engineer Brian Armstrong, Coinbase has experienced significant growth since its inception. Its annual revenue exceeded $7.8 billion in 2021. The primary source of revenue for Coinbase is the fees it charges for its cryptocurrency exchange services.

All that said, Coinbase has also experienced setbacks and controversies. The Office of Foreign Assets Control (OFAC) reviewed Coinbase in March 2021 for allegedly providing its services to blacklisted individuals or companies. In that same month, Coinbase also paid $6.5 million to settle a regulatory case that accused the company of reporting misleading information about its trading volumes.

Following this, in September 2021, the Securities and Exchange Commission (SEC) allegedly considered suing the company regarding its intention to release a lending service that used cryptocurrencies called Lend. Coinbase later cancelled the launch of this product.

Despite these occurrences, Coinbase has reported consistent revenue growth and has continued expanding its operations worldwide. It has acquired several other technology companies that complement its offering. The cryptocurrency exchange has also evolved its offering to include services for retail traders and institutional traders. It has also created products such as merchant payment services and a cryptocurrency learning platform.

Coinbase Stock History

Coinbase has been publicly traded on the Nasdaq Global Select Market since April 14, 2021. The Coinbase stock symbol is COIN. As of April 2022, Coinbase has a market cap of $34.4 billion. When Coinbase went public in April 2021, it was the 7th biggest new U.S. listing in history, surpassing those of well-known companies such as Visa, General Motors, and Uber.

The reference price of a share in the Coinbase IPO was $250.00, which gave the company a valuation of $47 billion. At the close of its first trading day, COIN shares were trading at $328.28. However, starting in early 2022, the Coinbase stock price entered a downward trend, which has yet to reverse as of April 2022. The highest share price COIN achieved was on November 9, 2021, when shares closed at $357.39.

Since going public, Coinbase has not paid a dividend or split its stock. According to the company’s website, it does not intend to pay dividends.

How to Trade COIN Stock

Several factors significantly impact Coinbase’s stock price. Coinbase IPO was viewed initially as providing validation to the cryptocurrency market. The company offered one of the most accessible ways for retail investors to buy and sell cryptocurrencies.

Since then, however, several other significant players in the financial industry have entered the cryptocurrency market. These players include large financial platforms such as PayPal and Cash App. This has increased competition in the space and placed downward pressure on COIN due to the company’s decreasing market share.

Another factor that may affect the price of Coinbase stock is the evolving regulatory landscape in its markets. As interest in cryptocurrencies grows, governments worldwide, including in Coinbase’s main markets, are passing legislation to regulate industry participants. Increasing regulation has led to some uncertainty from investors across the cryptocurrency industry.

However, Coinbase has been working proactively with regulators. It’s one of the few major US cryptocurrency exchanges to have received a BitLicense from the New York State Department of Financial Services (DFS).

The cryptocurrency markets are known for their price volatility, which also plays a role in the value of COIN shares. During a Bitcoin rally on March 28, 2022, the cryptocurrency rose 6.5% in 24 hours. Ethereum, another primary cryptocurrency, also increased in price by 7% during that time. In this same period, Coinbase shares rose 7%.

Coinbase Competition

Coinbase is one of the few publicly-listed cryptocurrency companies. However, it’s certainly not the only one. Payment services company PayPal (ticker: PYPL) has incorporated cryptocurrency functionalities into its PayPal and Venmo apps. The CME Group Inc. (ticker: CME) has also created cryptocurrency services for Bitcoin and Ethereum investors.

Coinbase Periodic Earnings

Coinbase’s fiscal year ends on December 31. The company reports its earnings quarterly. In the first quarter of 2021, Coinbase missed its Earnings Per Share (EPS) projection by -4.51%. However, in the second quarter of 2021, COIN exceeded its EPS by +152.23%. This was also followed by positive gains in the third quarter (+7.60%) and fourth quarter (+48.53%).

Why Trade COIN with AvaTrade

There are many reasons why you should consider trading stocks via CFDs with Avatrade.

International regulation: Avatrade is subject to and complies with multiple international regulations and directives.
Leveraged trading – a favourite tool for many CFD traders, leveraged trading can help you to maximize your returns even when there are only minor price changes. With Avatrade, you can trade COIN stock with a leverage of up to and enjoy higher profits. Note that there are risks involved with leveraged trading, as with any trading.
Ability to short sell COIN stock – as with all other CFDs, at AvaTrade, you can go long or short sell your COIN stocks based on what’s happening in the markets.
Automated trading solutions: Avatrade offers automated trading solutions that make trading simpler and quicker.
Competitive spreads – maximize your profit margins by trading COIN stocks alongside other stocks CFDs, with minimal cost.
AvaProtect risk management solution – a powerful tool that protects your trading positions against losses. Available on specific financial instruments.
Social trading via AvaSocial – an innovative social trading application that allows you to interact with other registered traders at Avatrade in unique ways (currently not available in the European Union).
Advanced analysis from the Trading Central – enjoy advanced detailed stock analyses from our Trading Central.

** Disclaimer –While due research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.