Coinbase Stocks Close Down By 32% While Bitcoin Pulls Back

Coinbase stocks closed 32% down from their high at the opening, now standing at $291 per share from a high of $430 as we can see in our latest Coinbase stocks news.

After a week of trading, the Coinbase stocks closed at $293 which is a 32% drop from the opening day high of $429. Coinbase, as the largest US crypto exchange, debuted its Coin stock via a direct listing on Nasdaq a week ago at a price of $381 and found buyers above the $400 mark before closing at $328. After managing to recovery, it’s been a steady ride downwards ever since while the rate remained higher than the Nasdaq Reference price offered before trading started again. 

Before Coinbase going public last week, analysts speculated that the price of the stock will be linked to the performance of the crypto market. Today’s action likely proves them right. Crypto markets lost about $400 billion in value based on the market cap in the past week and Bitcoin, on the other hand, dropped below $50,000 on Thursday night for the first time since March. In the meantime, the San Francisco-based exchange added the controversial stablecoin Tether (USDT) to its Coinbase Pro platform. 

Tether has been long under fire for various allegations including that the stablecoin is used to manipulate the BTC price. Tether’s parent company iFinex settled a new fraud investigation that was launched by the New York State Attorney General’s Office which stemmed from a $900 million hole in the Bitfinex finances as well as the connections to the Crypto Capital shadow bank.

As reported previously, The loan saw Bitfienx get access to a $900 million cash reserves fund in USDT to cover the shortfall when the payment processor Crypto Capital made off with about $850 million. This led to questions about whether Tether is fully backed with the USD as the dollar-pegged stablecoin claimed. Tether revised the position to assert that though Tether is pegged to the dollar, it is also backed by reserves that include traditional currency and cash equivalents. A few weeks ago, it published an attestation from the Cayman Islands according to a company that stated it had enough reserves to cover the liabilities.

Tether is seemingly in the clear as the token’s $49 billion market cap was a bit too much for the exchange to ignore. Investor Adam Cochran wrote that “This strongly legitimatizes Tether, which underpins huge price action, and now makes arbitrage to non-fiat exchanges more direct which is huge for capital flows.”