As I reported in a recent, previous column, staking is generating a significant amount of COIN’s revenue. For example, the SEC sued another crypto exchange, Kraken, for failing to register its staking offering as a security, and Kraken ultimately had to shut down the service. The SEC has repeatedly stated that COIN and its peers,”by registering as securities exchanges,” are violating the law, as The Wall Street Journal recently explained.Īnd the SEC has already dealt harshly with several COIN’s competitors that defied the agency’s warning about this issue. The SEC has informed Coinbase, through the issuance of a Wells notice, that the agency’s staff has recommended that it take formal legal against the company. Here’s more information about each of the four main reasons that COIN stock looks to be doomed. And if all of the preceding information isn’t enough to convince you that Coinbase is heading for a bad ending, consider that even Coinbase’s CEO, Brian Armstrong, apparently isn’t very optimistic about the outlook of COIN stock, as he’s sold tens of thousands of shares of the company in 2023. Moreover, even before the SEC officially starts its battle with COIN, most investors (or speculators, depending on your point of view) have lost faith in crypto, causing COIN to report dismal financial results and transaction data. Through many actions and statements, the Biden administration has shown that it views crypto as unacceptably risky, and courts have always upheld the punishments that the SEC has inflicted against crypto exchanges. The Securities and Exchange Commission has crippled other crypto exchanges that, like Coinbase, have defied it, and the agency has issued multiple warnings that it will take similar steps against Coinbase. For Coinbase (NASDAQ: COIN ) and Coinbase stock, the signs of impending doom could hardly be stronger or more obvious.
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