Just a few weeks ago, the majority of the crypto world was celebrating. After Coinbase, the top cryptocurrency exchange in the United States, finally went public. In a movement that for many heralded the beginning of greater integration between the cryptocurrency market and traditional finance. However, as Scott Melker comments in the Tweet of the day, Coinbase lost its shine on the stock market:
Coinbase moment passed on the exchange?
Since Coinbase was launched on the stock market, there has been a heated debate within the crypto world among those who consider this to be an invaluable opportunity for the community. Which will allow access to more crypto companies to obtain financing in the capital market. And those for whom this movement betrays, in fact, the foundations of the crypto world and Blockchain technology.
And it is that, for this part of the crypto community, many people are investing in the shares of Coinbase not as a way to put their capital in the cryptocurrency exchange. But as a mechanism to invest in cryptocurrencies without buying cryptocurrencies. Operating under the assumption that Coinbase’s share price will vary to the same extent that the crypto market does.
This, of course, has been denied in recent weeks. Well, despite the overall good health of the crypto market, Coinbase shares have steadily declined in value since their launch. As the initial excitement wears off and the demand for the shares wanes. Going from the 342 dollars at which they were traded to the 256 dollars at which they are currently located.
«There was a time when adding a cryptocurrency to Coinbase caused it to skyrocket in price. Now we need Coinbase to add $ DOGE to save Coinbase’s own shares».
Thus, with this message Scott Melker mocks the situation in which the shares of Coinbase are. Referring to the so-called Coinbase effect experienced by the cryptocurrencies listed on the exchange. And making clear once again his position contrary to the emotion generated by the company’s IPO.