Coinbase crowns itself as winner of the American crypto war
Last Updated on 29 November 2023 by CryptoTips.eu
Bitcoin once gain flirted with the $38,000 level the past night. Big winners on the American stock markets were therefore not only the Bitcoin-miners but also Coinbase, which gained some 250% this year already.
Sam Bankman-Fried, the founder of the defunct FTX, was convicted at the beginning of this month. A week ago it was Binance’s turn to be fined billions of dollars. Binance CEO Changpeng Zhao may also receive a further conviction from the American authorities. He has already been ordered not to leave the country until the verdict becomes official.
It now looks as if Coinbase, Brian Armstrong’s crypto platform, has won the American crypto war. Or is it too early for that conclusion?
Coinbase, Binance and FTX
Back in April of 2021, Coinbase went public on the New York Stock Exchange. It was a landmark moment for crypto. Bitcoin was trading at $50,000 and Coinbase was immediately valued at $86 billion. Investors went wild and Coinbase stock traded at over $300.
There were three major players in the US market at the time: Coinbase, Binance and FTX.
2022 was a bad year for crypto. First Luna and Terra got into trouble, after which many other digital coins and companies went bust. In November 2022, the world came crashing down for all those who had crypto investments with FTX as the major crypto player declared bankruptcy.
Not much later, Sam Bankman-Fried was arrested in the Bahamas and extradited to the United States. Coinbase’s stock crashed, trading at $50.
2023 has been a much better year for crypto (so far). Bitcoin rose more than 100% and is trading close to $40,000 again. With the halving next year, the future looks a lot brighter for Bitcoin, Ether and all others.
Things turned out differently for the three major crypto platforms. Binance was fined billions and CEO Changpeng Zhao had to resign. FTX founder Sam Bankman-Fried is still in prison, has already been convicted of all charges and is awaiting sentencing. The only one that apparently comes out of all this unscathed (so far) is Coinbase.
In an interview with CNBC this week, Coinbase CEO Brian Armstrong said:
“The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of history.”
“There are many crypto companies that are helping build the crypto economy and change our financial system globally. But many of them are still small startups. I think that regulatory clarity is going to help bring in more investment, especially from institutions.”
Coinbase’s stock is thus far the winner of the American crypto war for investors and is now trading for more than $120 again.
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