Lưu trữ cho từ khóa: Coinbase

Phân tích

Analyst lowers Coinbase price target, still sees 40% upside

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Analyst lowers Coinbase price target, still sees 40% upside

Coinbase stock price has been in a freefall, dropping for eight consecutive days, but one analyst believes that it could rebound to $295, ~40% above its Friday’s open. 

Coinbase’s retreat happened as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other altcoins suffered a harsh reversal, leading to lower volumes across centralized and decentralized exchanges.

Coinbase earnings

In addition to the trends in the crypto market, the Coinbase stock price reacted to the company’s earnings, which showed the benefit of its diversification.

Coinbase made $1.3 billion in net revenue in the second quarter, a big increase from the $663 million it made in the same period in 2023. The figure was lower than the $1.58 billion it made in Q1.

Coinbase’s net income of $36 million was also higher than the $97 million loss it made in the same period a year earlier. All its numbers were better than its guidance and analyst estimates. 

Most importantly, Coinbase’s efforts to diversify its business are working. Its transaction revenue came in at $780 million, while the subscription and services revenue jumped to $599 million.

A big increase in its latter segment was its custodial fee part, whose revenue rose to $34.5 million. This is an exciting business for Coinbase because it has become the biggest custodian for most Bitcoin and Ethereum ETFs. Its figures will see less volatility in the future since investors hold their ETFs for a long period. 

The other part of Coinbase’s subscription and services revenue includes its stablecoin, blockchain reward, interest and fee, and other subscriptions.

Analyst is bullish on Coinbase stock

Most Wall Street analysts are bullish on the COIN stock. According to Yahoo Finance, the average analyst price target is $265, 25% higher than its Friday’ open. 

Citigroup changed its tune on Coinbase, moving from neutral to buy in July. Other analysts from Needham, Goldman Sachs, and JMP Securities are bullish on the stock.

The latest analyst to comment on the stock was from HC Wainwright, who lowered their price target from $315 to $295, implying a still strong 40% gain from its current price. 

The analyst cited two key catalysts to drive shares higher. First, the crypto industry could get the regulatory clarity it has always wanted this year. Brian Armstrong, the company’s CEO has seen some bipartisan moves about crypto in Congress in the past few months. 

Second, HC Wainwright noted that Coinbase has now become a more diversified company, meaning that it is no longer dependent on transaction revenue. 

“While it is plausible that we could see crypto asset prices and trading volumes trend sideways in the coming months due to macro related headwinds/uncertainty, we remain bullish on these critically important drivers for Coinbase as we look out over the next 12-18 months, as we enter the next leg of this bull market cycle for crypto,” the analysts wrote.

Coinbase stock | Chart by TradingView

HC Wainright faces some technical risks. On the daily chart above, the stock has retreated below the 50-day and 100-day Exponential Moving Averages (EMA), meaning that bears are taking over. It has also formed a slanted double-top pattern whose neckline is at $195.02. A drop below that level will point to more downside.

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DeFi

a16z, Coinbase back $50m funding round for Morpho

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Decentralized crypto lender Morpho has announced a $50 million strategic round backed by a16z and Coinbase Ventures among other top crypto venture capital firms.

On August 1, 2024, Morpho disclosed that Ribbit Capital, an early-stage VC investor whose portfolio includes Robinhood, Revolut, Coinbase, NuBank, and Mercado Libre, led the funding round.

Funding key to Morpho growth, CEO says

Morpho will use the strategic funding to bolster its network’s decentralization. The funds will also go into supporting global growth for financial infrastructure as a public good, Morpho CEO Paul Frambot wrote in a blog post. According to Frambot, support from these top venture capital firms is key to the protocol’s continued growth within the decentralized finance space.

Two years since its launch, Morpho has grown from its primary product. Having started as an optimization layer for interest rates on Aave and Compound dubbed Morpho Optimizer, the platform has evolved to Morpho Blue, a layered architecture that allows for the building of lending protocols that feature built-in risk management features. Funding provides an opportunity for Morpho to thrive by extending grants to active contributors helping to build its DeFi infrastructure.

“The potential impact of Morpho extends far beyond current DeFi markets, as the protocol is capable of becoming decentralized infrastructure to underpin a truly global, internet-native financial system,” Frambot noted.

a16z, Coinbase Ventures back Morpho

Other than Ribbit Capital, Morpho Labs’ latest funding round attracted the participation of some of crypto market’s biggest VC firms.

They include Andreessen Horowitz, Coinbase Ventures, Pantera Capital, Variant, Brevan Howard and BlockTower.

The strategic funding round follows the $18 million financing round Morpho Labs secured in July, 2022. a16z and Variant led that round.

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DeFi

Coinbase hacker jailed 3.5 years for stealing from over 500 users

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A hacker has been sent to prison for draining over $900,000 from the accounts of several Coinbase users.

Elliot Gunton, a resident of the United Kingdom, and his accomplices designed fake websites that mimicked the prominent cryptocurrency exchange. Coinbase users trying to log into the exchange were redirected to these malicious websites, resulting in their accounts being compromised.

These websites are typically designed to collect user data. When a victim enters their log-in information, the sensitive data is recorded and sent to the attackers.

While the exact details of Gunton’s tactics were not disclosed, Judge Alice Robinson of the Norwich Crown Court said the scheme was “highly sophisticated” and was the result of significant planning and technical expertise.”

The phishing scheme was reportedly active between 2018 and 2019. According to a 2020 Chainlysis report, the period saw a significant uptick in crypto crimes, with over  $4.3 billion worth of cryptocurrencies lost to various hacks and scams.

Gunton, who was 17 at the time, infiltrated over 500 Coinbase accounts and siphoned over $900,000. One United States resident allegedly lost over $16,000, while others were drained for hundreds and thousands of dollars.

He pleaded guilty to charges of conspiracy to commit fraud outside the UK and money laundering and is facing 43 months in prison.

Meanwhile, Coinbase has become the most impersonated crypto platform among global brands. According to a June 24 report from Mailsuite, the crypto exchange’s brand was tied to 416 reported phishing attacks over the past four years.

Most recently, on July 8, scammers pretended to be Coinbase employees and stole $1.7 million from a victim’s self-custody wallet. The victim was socially engineered into clicking a phishing link that compromised a part of his key phrase.

Scammers have also mimicked Coinbase Pro, Coinbase’s now-defunct professional trading platform. In May, an Indian national was charged with stealing $37 million in crypto from unsuspecting users via the fake Coinbase pro phishing website.

Security firm SlowMist has marked phishing as one of the leading causes behind crypto thefts in the second quarter of 2024. 

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Công nghệ

Brevan Howard’s new fund to target firms with crypto on balance sheets: report

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Brevan Howard’s crypto hedge fund has launched a new unit that will help companies generate more returns on their crypto treasuries.

Brevan Howard Asset Management’s crypto-focused branch, Brevan Howard Digital, has unveiled a new unit aimed at enhancing returns for companies holding crypto as a reserve asset.

According to a Financial News report, the new unit called BH Digital Solutions will be led by Chris Rayner-Cook, former head of trading and financing at Coinbase. The unit’s initial focus will be on blockchain and crypto mining companies, helping them generate increased returns from their holdings.

The launch comes as BH Digital, Brevan Howard’s crypto hedge fund which manages $2.3 billion, reported a 20% increase in assets under management in the first half of 2024. As crypto.news reported, since its launch in late 2021, BH Digital has seen its assets swell to $2.3 billion, with a more than 50% gain since its trading debut in March 2022.

Gautam Sharma, CEO of Brevan Howard Digital, emphasized that the new unit represents a “natural extension” of the firm’s offerings, highlighting the growing “opportunities” in the crypto space for institutional investors.

As the financial landscape remains uncertain, an increasing number of companies are incorporating crypto into their balance sheets. Data from BitcoinTreasuries.com reveals that over 90 companies globally hold Bitcoin (BTC), with MicroStrategy leading the pack with more than 226,330 BTC, valued at over $15.7 billion at current prices.

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Phân tích

Coinbase stock price is rising; Aug. 1 will be crucial

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Coinbase stock price rose almost 5% in the pre-market session as Bitcoin and other altcoins bounced back.

The stock was trading at $242, up 15% from this month’s low of $210. Other crypto-related stocks, such as Marathon Digital, Riot Platforms, MicroStrategy, and Core Scientific, rose by over 4%. 

Coinbase stock price chart | Source: TradingView

Cryptocurrencies are bouncing back

The recovery happened as Bitcoin (BTC) rose by 4%, reaching an intraday high of $67,240. Other top gainers were cryptocurrencies like SATS, Aave (AAVE), and Mog Coin (MOG). In most cases, Coinbase and other stocks in the industry rise when cryptocurrencies are recovering.

Still, despite its rebound, Coinbase stock remains in a technical correction, having dropped by over 15% from its highest level this year. 

Also, this recovery is happening in a low-volume environment. Data shows that the 24-hour volume in centralized and decentralized exchanges dropped by 5.4% to $80.6 billion. 

Coinbase earnings ahead

The next important catalyst for Coinbase stock will be the company’s quarterly results on Aug. 1. 

According to Yahoo Finance, the average estimate among 17 analysts is that the company made $1.41 billion in the second quarter. The highest estimate is $1.73 billion while the lowest one is $1.23 billion. 

If the average estimate is correct, it will represent a 98% year-on-year growth rate and a drop from the $1.64 billion it made in the first quarter. The drop will happen because cryptocurrencies were muted in the second quarter after soaring in Q1.

Data by DefiLlama shows that the volume in the DEX market peaked at $288 billion in March and has dropped to $157 billion this month. Centralized Exchanges (CEX) have also seen a similar drop in volume.

Wall Street analysts also expect that its forward guidance will point to an annual revenue of $5.94 billion, a 91% increase from the same period in 2023. 

The bullish case for Coinbase stock

Most analysts have a buy or neutral rating on Coinbase stock. The average COIN stock target is $267, up from the current $231. In a recent note, crypto.news pointed to an analyst who predicted that the shares would jump to $1,700 in the long term. Citigroup upgraded the stock from neutral to buy this week.

Bulls note that Coinbase is the biggest crypto exchange in the United States, is audited by Deloitte, and is under the supervision of the Securities and Exchange Commission since it is a publicly traded company. 

Additionally, Coinbase has diversified its business and is making money from different sources. For example, it has become the biggest custodian of Bitcoin and Ethereum (ETH) ETFs. It is also one of the biggest Bitcoin holders in corporate America with 9,480 coins.

However, shorts believe that the company is highly overvalued. It has a market cap of over $60 billion, annual revenues of $2.92 billion, and a forward price-to-sales ratio of 34. The industry has also become highly competitive, and Coinbase has lost market share to Bybit. 

Therefore, Aug. 1 will be important as its earnings will provide investors with more details about its operations, especially its ETF custody business.

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Phân tích

Brett token price rises 12%; analyst sees another 30% upside

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Brett, the biggest meme coin in the Base Blockchain, rose by over 12% on Friday as sentiment in the crypto and stock industries improved.

Brett (BRETT) token rose to $0.133, up 31% from its lowest swing this month. Some traders believe that the meme coin has more upside going forward.

Analyst is bullish on Brett

In an X post, Michael van de Poppe, a trader with over 721,000 followers, noted that he was optimistic that the token would rise to $0.1712, a 30% increase from Friday’s trading level.

If he is correct, Brett’s market cap will pass Floki (FLOKI), which has a market cap of $1.7 billion. 

Brett’s rebound happened as the Bitcoin 2024 conference kicked off today. In a statement at the event, Robert Kennedy, an independent presidential candidate, noted that he was a big supporter of Bitcoin (BTC).

The event’s main headliner will be Donald Trump, who is leading in most polls, including in Polymarket. Trump is expected to reiterate his support for cryptocurrencies. Analysts are torn about whether he will announce a Bitcoin reserve at this event. 

Base Blockchain is doing well

Brett token also rallied as the Base blockchain ecosystems continued doing well. Launched in 2023 by Coinbase, Base has accumulated over $1.6 billion in DeFi assets, making it the 6th biggest chain in the industry. It has passed popular networks like Cardano (ADA), Avalanche (AVAX), and Polygon (MATIC).

At the same time, Brett and other altcoins jumped as the US stock market rebounded, signaling that investors have embraced a risk-on sentiment. The Dow Jones index rose by over 600 points, while the S&P 500 and Nasdaq 100 jumped by over 80 basis points. 

Brett price chart | Source: TradingView

Technically, Brett has formed a morning star pattern, which is a popular reversal sign. In the past, the token rose by double-digits when it formed this pattern. For example, it formed on July 12 and then rose by 40%. 

On the flip side, this rebound could be a dead cat bounce, where an asset rises briefly and then resumes the bearish trend.

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Theo Crypto News

Pháp Lý

Kraken, Coinbase form blockchain council to develop crypto security standards

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Crypto exchanges Coinbase and Kraken, along with blockchain firms like Fireblocks, have established a new council aimed at addressing emerging threats like contract exploitation.

American crypto trading giants Kraken and Coinbase have co-founded a new non-profit organization aimed at safeguarding the industry from emerging security threats by developing a “consensus of agreed upon standards.”

In a Wednesday blog announcement, Kraken said the new organization, called the Blockchain Security Standards Council (BSSC), will seek to establish “uniform security standards” to drive confidence in the industry. The council’s founding team also includes Coinbase, Anchorage Digital, Bastion, Figment, Fireblocks, Halborn, OpenZeppelin, Ribbit Capital, and Sentinel Global.

Kraken says all firms in the BSSC are committed to developing “industry security benchmarks and a robust audit process by the end of 2024.” For instance, the BSSC will focus on addressing threats such as fraud, nation-state targeted campaigns, and protocol and contract exploitation.

Besides addressing security issues, the council will also seek to engage with regulators to ensure the sector develops “unified standards that protect consumers while nurturing innovation in the asset class,” the announcement reads.

For Coinbase and Kraken, this is not their first venture into forming councils. In 2019, both platforms co-founded the Crypto Ratings Council to clarify which tokens could be traded without regulatory oversight. Despite these efforts, the council failed to shield Coinbase and Kraken from lawsuits filed by the U.S. Securities and Exchange Commission in 2023, which alleged that both companies violated securities laws.

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DeFi

COVAL plunges 41% amid Coinbase delisting

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Circuits of Value (COVAL) has witnessed a deep dive in its value as the Coinbase crypto exchange decided to suspend trading for the asset.

COVAL plunged by 41% in the past 24 hours and is trading at .01 at the time of writing. The asset’s market cap is sitting at .4 million, making it the 892nd-largest crypto. COVAL’s daily trading volume increased by 2,760%, reaching .75 million.

COVAL price and exchange activity – June 19 | Source: Santiment

Following the price fall, COVAL is down by 99.99% from its all-time high of 3.01 in January 2022. 

COVAL is the native token of the Circuits of Value ecosystem which offers an asset management platform and an exchange. The token was launched on the Ethereum blockchain in early 2015.

The COVAL price plunge comes as some users claim that Coinbase has decided to stop supporting the asset with a notification earlier today. This made many users complain about the exchange’s approach in delisting COVAL with a very short time window. 

Coibase did not respond to crypto.news’ immediate request for comment on the matter.

One X user, called Satoshi kakaroto, claims that the team behind COVAL has been involved in the token’s price manipulation. 

On March 3, claimed that three Circuits of Value developers drained a huge amount of the token’s supply, calling it a “Pump & Dump” project.

According to data provided by Santiment, the number of COVAL active exchange deposits surged from zero to 29 over the past 24 hours. 

Moreover, the number of COVAL active exchange withdrawals increased from seven to 59 over the past day. This shows that investors have been trying to swap or withdraw their COVAL holdings due to the Coinbase delisting.

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Altcoin

Coinbase proposes new blockchain adoption metric to combat airdrop-related distortions

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Crypto exchange Coinbase has unveiled a new metric dubbed the h-index to address distortions in tracking onchain adoption caused by airdrop-related activities.

Coinbase, a publicly traded U.S.-based cryptocurrency exchange, known for its development of Base, a layer-2 solution for Ethereum, has introduced a new metric to provide a more accurate measure of blockchain network adoption. This new metric aims to mitigate distortions caused by airdrop-related activities and Sybil attacks.

In a research report on Friday, Coinbase noted that investments in blockchain infrastructure have led to an excess of blockspace, making onchain transactions cheaper and fueling networks with a new wave of decentralized applications. However, this change also made it challenging for analysts to track ecosystem adoption as more applications launch.

Traditional network metrics such as total transactions or daily active addresses can be skewed by Sybil attacks and airdrop activities, Coinbase says. To address this issue, Coinbase proposes a new metric called the h-index, which balances the depth and breadth of onchain adoption. The h-index counts the number of addresses receiving transactions from at least that same number of unique sending addresses.

“In other words, an h-index of 100 means that 100 different receiving addresses had received transactions from at least 100 unique sending addresses over a given time frame.”

Coinbase

According to Coinbase’s findings, when h-index applied, Ethereum and Base networks exhibited the most widespread user activity for the week ending Jun 6, followed by Arbitrum and Polygon.

H-index for blockchain networks | Source: Coinbase

While acknowledging the metric’s imperfections, Coinbase believes the h-index can shed “new perspectives on comparative chain adoption by mitigating the outsized influences of Sybils and measuring growth more broadly.”

The crypto exchange noted though that challenges still remain, including differences in blockchain execution environments, which can affect transaction formats and data interpretation. Additionally, the influence of exchange or other smart contract wallets “could also distort numbers,” Coinbase admits.

Sybil attacks are a well-known type of network attack in the crypto industry where a single entity creates multiple fake identities or nodes to gain control over a network or influence its operation. This sort of activity can manipulate network metrics and data by creating numerous false accounts or addresses to inflate transaction volumes or user activity artificially to distort the perception of network usage and adoption.

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