Coinbase (COIN) plunges 21% because of SEC Investigation
The investigation by the US Securities regulatory body against Coinbase exchange resulted in a significant negative impact on the stock price of Coinbase exchange.
Coinbase is a leading crypto exchange in the United States. Exchange is listed on the Nasdaq exchange and provides services under a highly compliance-based environment, which helps it to grab institutional crypto investors. The current ranking of this exchange in the crypto industry is 3, in terms of 24 hours trade volume on its platform.
Just a couple of days ago, Bloomberg reported that the Coinbase exchange is facing hurdles because of the ongoing investigation against its former employee. According to the report, former Coinbase manager – Ishan Wahi was a key player to facilitate insider trading against particular crypto assets.
After the report of Bloomberg, Coinbase’s share price is facing a huge struggle. Today the current price of COIN is 52.93 USD, which is 21% down.
On Tuesday, the COIN price opened at $61.74 and closed at $52.93.
So, now COIN is down by 75% this year and 84% down from its all-time high.
Coinbase provides Securities assets trading?
The SEC agency is mainly investigating the violation of securities law by the Coinbase exchange. According to the SEC agency, ENS, GALA, POWR, and ALCX are securities on the Coinbase exchange.
Through a blog post, Coinbase exchange noted that not all the 9 mentioned crypto assets by the SEC agency are listed on Coinbase.
All these things together created a situation for the exchange to fight against the legal hurdles and also spoiling the reputation of the exchange to some degree.
Caroline D. Pham, Commissioner at CFTC agency, shared her point of view on the steps taken by the SEC agency against such kinds of assets (security or non-security) on a public exchange. Caroline directly criticized the ruling system of the SEC agency.
Ripple’s CEO supported the statement of the CFTC commissioner on Twitter against the SEC agency.
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