The U.S.’s largest cryptocurrency exchange operator fell 6 percent to $ 256.76 on Thursday, falling for the fourth day in a row.
Coinbase Global Inc. fell to a record low as investors fled newcomers to the market.
The largest U.S. cryptocurrency exchange traded down 6% to $ 256.76 on Thursday, falling for the fourth day in a row.
That left the shares just above the $ 250 reference price for their April direct listing. A publicly traded fund that tracks the shares of companies that recently went public fell on the eighth day, the longest slide since 2015.
Virgin Galactic Holdings Inc. and Opendoor Technologies Inc., companies that went on the market through blank check offers, each fell by at least 3.8%.
“We saw a mini-bubble in SPAC, IPO, cryptography, clean technology and hypergrowth in late 2020 and early 2021 and many of these asset classes are bad resets,” said Mike Bailey, research director at FBB Capital Partners.
The Coinbase slide comes as investors pour in extremely speculative cryptocurrencies like Dogecoin and Binance Coin – tokens the exchange doesn’t offer.
Most of its traffic came from Bitcoin transactions, but the price of the largest cryptocurrency has been added in a narrow band for weeks. Coinbase started trading at $ 381 on April 14 before briefly topping $ 400. It is now down 22% from the close of its first day.
Nasdaq had set a benchmark price of $ 250 per share on April 13 for Coinbase’s direct listing, a number that is a requirement for shares to start trading, but not a direct indicator of the market’s potential market capitalization. company.
“What has really hurt Coinbase, now that its direct listing has been soaring, you see expectations coming from other stock exchanges,” said Edward Moya, senior market analyst at Oanda. “There is this belief that this could be as good as for Coinbase in the short term.”
The Renaissance IPO ETO ETF fell 4.2% on Thursday, raising the loss to about 14%.