Founder Of Kynikos Associates Says He Is Shorting Coinbase

The founder of Kynikos Associates Jim Chanos said he is shorting Coinbase and called the exchange a “bubble stock” in a recent interview as we are reading more today in the Coinbase news.

Jim Chanos said on Friday he is shorting crypto exchange Coinbase calling it a “bubble stock.” Chanos expected the fee compression as competition increased on exchanges and doesn’t think the exchange will be profitable this year. Chanos said:

“We basically think Coinbase is over earning. If you do the numbers, their revenue base is roughly 3% to 4% of their custodian assets, their customer assets.”

Wall Street remained positive on the long-term outlook for Coinbase despite the expectations for the near-term headwinds. The founder of Kynikos Associates made the remarks during a CNBC interview while other analysts expect Coinbase to diversify the revenue from different segments like NFTs. Coinbase shares were down by 1.8% and dropped by 26% this year.

Speaking of Coinbase, Coinbase digs deeper into Web3 by launching Coinbase Pay which will allow even more opportunities for the customers. The crypto exchange announced that users can now take advantage of the new feature to fund their non-custodial wallets easier than before. As part of the mission to make crypto products accessible to the public, Coinbase digs deeper into web3 by introducing Coinbase Pay and explaining that the new solution is an extension of the existing digital asset wallet whcih allows for users to interact with Web3 applications.

The Coinbase exchange launched wallet support for Solana today on the Wallet browser extension and the wallet will allow users to manage their SOL and SPL tokens using the extension. Before adding Solana, the Coinbase Wallet extension supported Ethereum, Avalanche, Polygon, and the BNB Chain among others. By adding Solana support, the Coinbase exchange positioned its wallet as a competitor to leading wallets Phantom and Solflare.

While the wallet now offers support for SPL and SOL tokens it doesn’t yet allow users to manage the Solana NFTs within the wallet. It is worth noting that Solana tokens will be visible via the Coinbase wallet browser extension during the launch with the wallet mobile app will not show them. The users can move their tokens from the existing Solana wallet to a Coinbase wallet by inputting the confidential recovery phase in the wallet browser extension on setup.