Coinbase Stock Popped Nearly 24%; After Lawsuit Dismissal

The stock price of the second largest cryptocurrency exchange, Coinbase, skyrocketed by over 23% on February 2, 2023. Coinbase leads globally in terms of its trading volume and is the most used exchange in the United States.

The asset was worth $59.27 (closing price) on January 31, 2023. Market value of Coinbase reached $65.70 on February 1, 2023.This shows COIN stock price witnessed an increase of 52.90% in the price since then.

The overall market capitalization of Coinbase is $18.49B.

The COIN stock prices are impressively trading and are up by 45.13% weekly; 123.24% rose monthly and surged by 34.87% in the last three months.

The jump of 23.99% in the last trading session is a result of the dismissal of a lawsuit against the cryptocurrency exchange. A customer accused the exchange of selling securities and failing to register as a broker-dealer.

Reuters reported that U.S District Judge Paul Engelmaye noted that customers who transacted on Coinbase and its premium trading platform Coinbase Pro could not show that the company sold or held title to the 79 tokens, a form of a digital asset they traded.

District Judge Paul Engelmayer in Manhattan said that “Coinbase had no direct role in the transaction, despite having allegedly promoted tokens by describing their purported value proposition and participating in airdrops of free tokens to boost trading volume.”

Coinbase Global Inc. was established in June 2012 in San Francisco, California, United States. The exchange had the fiat support of the U.S Dollar, Euro and GBP(British pound sterling).

According to data aggregator CoinMarketCap, Coinbase trading volume in the last 24 hours is $1,516,839,321, has weekly visits of 527,890 and supports trading of over 241 different assets.

Earlier this month, Coinbase reached a settlement with the New York State Department of Financial Services (NYDFS) for $100 million, of which the business will spend half on compliance improvement.

Coinbase Quarterly Financials of 2022

Coinbase’ total revenue in Q1 2022 was $1.17B, from which net income was $429.66M, and the profit margin was -36.87%. In Q2 2022, the revenue was $802.65M, from which net income was $1.09B, and profit margin was -136.26%. In Q3 2022, the revenue was $576.38M, the net income was $-544.64M, and profit margin was -94.49%.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing