The title of the cryptocurrency trading platform lost more than 15% on Monday and three quarters of its value since the start of the year.
Coinbase falls in New York with bitcoin and lender Celsius | Photo credit: Coinbase
This is one of the falls of the day on Wall Street, the title of the Coinbase cryptocurrency exchange platform lost more than 15% in the first exchanges to return below the 50 dollar mark.
The stock is being swept away by the turmoil surrounding bitcoin, down another sharp drop of 12% to $23,400, its December 2020 lows. More than $200 billion has evaporated from the cryptocurrency market since the start of the weekend.
Much of the explanation lies with Celsius, a cryptocurrency lender, which said on Monday that it was suspending all withdrawals, trades and transfers between accounts due to “ extreme market conditions “. Another industry player, Binance, also temporarily suspended bitcoin withdrawals, but said the choice was due to a “ blocked transaction causing a backlog “. The problem was initially supposed to be resolved within half an hour, its CEO Changpeng Zhao announced in a tweet, before correcting that “ this will probably take a bit longer than my initial estimate “.
Funds are SAFU.
— CZ???? Binance (@cz_binance) June 13, 2022
The Coinbase platform is remunerated via commissions linked to purchases and sales of crypto-currencies by its customers. On the stock market, the action has lost three quarters of its value since the beginning of the year. The latest figures for the first quarter were poorly received, marked by a 27% drop in revenues in the space of a year.
DL, with CNBC