The banking giant downgraded the rating of Coinbase is an American company that operates a cryptocurrency exchange platform. (COIN) to sell, as shares of the exchange plunged after the market an area or arena, online or offline, in which commercial dealings are conducted. opened Monday.
- Goldman Sachs recomienda vender acciones de Coinbase.
- The price of COIN a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. fell 10% on Monday.
- The bank does not believe the layoffs are enough.
As the bearish season in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market extends, some Wall Street pundits suggest it’s best to sell shares of the exchange Coinbase .
The banking giant Goldman Sachs downgraded the rating of Coinbase (COIN) of “ neutral ” a “ turn “in a report on Monday that was quoted by CoinDesk yThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.. In a dovish sign amid the broader price decline in the market, the bank’s analysts also cut their price target for COIN from USD $70 to USD $45.
The downgrade for the rating of the reputable exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. is due to the continued fall in cryptocurrency prices and the resulting drop in industry activity levels, explained Goldman . In its note, the bank said it expects current cryptocurrency prices and trading volumes to trigger a “ further deterioration “in the revenue base of Coinbase, which is forecast to fall by around 61% year-on-year in 2022 and by around 73% in the second half of the year.
The actions of Coinbase shares registered a 10% loss on Monday, following the release of the report. According to the Nasdaq data from TradingView , COIN is trading at USD $56 at the time of writing, one level below its Friday close refers to the closing price; similar to the same term used in stock trading. above USD $60.
Layoffs Not Enough, Goldman Says
The degradation takes place a few weeks after the Coinbase announced a workforce restructuring which involves the dismissal of more than 1,000 of its employees. It is not the only one, since a variety of exchanges and cryptocurrency companies are also implementing downsizing amid falling prices.
In your note today, Goldman also addressed this issue and noted that he does not think it is enough. Coinbase tendrá que hacer reducciones sustanciales en su base de costos para “ curb the resulting cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. burn “as retail trading activity slows, the bank said. The report added that the company faces a difficult choice between shareholder dilution and significant reductions in “ effective employee compensation “which can have a negative impact on talent retention.
The Wall Street titan was also pessimistic about the rivals of Coinbase y la competencia en el mercado, especialmente después de que la empresa anunciara que eliminará Coinbase Pro to merge institutional and retail services on a single platform. The Block citó the note:
Finally, we are increasingly bearish on the competitive environment and the prospects for fee compression given the announced merger of the Coinbase and Coinbase Pro platforms, which has the potential to reduce switching costs and make lower prices more readily available to its users.
Goldman no es el único que parece estar recomendando vender las acciones de COIN. Como recoge The Blockthe discount comes only four days after the Moody’s also to announce a downgrading for Coinbase . Moody’s dijo on Thursday that I was lowering the ” corporate family rating (CFR) of Coinbase Global, Inc. (Coinbase) to Ba3 from Ba2 and downgraded its senior unsecured senior secured notes to Ba2 from Ba2. Ba2 since Ba1 “. He added that these ratings were put under review for further downgrade.
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Article by Hannah Estefania Perez / DiarioBitcoin
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