Coinbase Shares Downgraded, Price Target Slashed by 50%, Despite Security Record

• Cowen downgraded Coinbase shares from outperform to market perform due to the lack of clarity on a possible trading volume recovery after FTX collapsed
• Cowen also reduced its price target on the shares from $75 to $36, almost 50%
• Experts believe Coinbase has an excellent security record and is one of the safest platforms to trade, buy, and sell crypto

Financial services and investment firm Cowen recently downgraded the shares of cryptocurrency exchange Coinbase from outperform to market perform. This comes after Cowen cited the absence of clarity on a possible trading volume recovery following the collapse of competing crypto exchange FTX. In addition, Cowen reduced its price target on the shares from $75 to $36, almost 50%.

The premarket session saw the stock dropping to $37.14, a 1.5% drop. This is not the first time Coinbase shares have seen a significant downward trend, with an 84% drop in the stock prices last year.

The future of Coinbase remains uncertain, however, the company is considered to be one of the safest platforms to trade, buy and sell crypto. This is due to its excellent security record and a number of features that make it a secure option. The collapse of Sam Bankman-Fried’s exchange has sent shock waves throughout the industry, with watchdogs like the US Securities and Exchange Commission likely to increase their scrutiny of the crypto market.

Furthermore, lowered crypto valuations will likely lead to lower retail trade volumes. However, despite this, Coinbase is still considered to be a viable option for crypto enthusiasts. As such, Cowen’s decision to downgrade the shares will likely have minimal impact on the platform’s future success.

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