In a dramatic juxtaposition of fortunes within the cryptocurrency sphere, November witnessed a striking turn of events for prominent players. Coinbase, one of the leading cryptocurrency exchanges, experienced a remarkable surge of 62% in its shares during the month. However, the founders of two other prominent exchanges faced legal challenges that sent shockwaves through the industry.
What Brought About the Surge in Coinbase Shares?
Interestingly, Coinbase’s surge in shares is attributed to several factors. The growing mainstream acceptance of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), coupled with increasing institutional interest, has propelled the demand for platforms like Coinbase. As more individuals and organizations explore digital assets, the exchange has positioned itself as a user-friendly gateway to cryptocurrencies.
On the flip side of the success story, November brought a wave of legal troubles for two other influential figures in the crypto space. FTX founder Sam Bankman-Fried (SBF) faced conviction on fraud charges, marking a significant blow to the credibility of the exchange.
The charges raised questions about the regulatory environment surrounding cryptocurrency platforms and underscored the need for increased scrutiny in the evolving landscape. Meanwhile, Binance Founder Changpeng ‘CZ’ Zhao pleaded guilty to criminal charges in another high-profile case. The plea added an element of uncertainty to the future of Binance.
Unlike many of its competitors who succumbed to the challenges of the crypto industry, Coinbase managed to navigate through and came out stronger.
Undoubtedly, the events of November serve as a cautionary tale within the crypto space, emphasizing the importance of compliance, transparency, and navigating the complex regulatory landscape to ensure the long-term sustainability of these platforms.
Coinbase Shares Sees 192.1% Surge in Price
Last month, COIN closed up 6.58% on the stock market Nasdaq at $98.15 indicating a 192.1% surge from $33.6 at the beginning of this year. Markedly, the shares of the publicly listed company have seen a 4% price growth in Q3, 2023, and almost 177% in the last eleven months.
Meanwhile, the recorded stock growth for Coinbase confirms that South Korea’s National Pension Service (NPS) acquisition was a good “buy.” Considering the average price of the shares when NPS made its acquisition, the pension fund made a 40% profit on its COIN investment. Based on the shares’ value by the end of the day, the NPS COIN shares were then valued at $27.74 million.
Coinbase Files Lawsuit Against the SEC
Recall that in April, the exchange platform announced it is suing the Securities and Exchange Commission over regulatory uncertainty in the digital ecosystem.
Coinbase claims that the SEC has had opposing views regarding the regulation of digital assets over the years. As per a report, Coinbase also disclosed its intentions to file an order, requesting the dismissal of the SEC’s complaint. The exchange noted that the agency never advised it to register even when it declared that its authorization would be valid in April 2021.