Coinbase (COIN) stock struggling as SEC sent Wells notice
The negative news about the Coinbase exchange resulted in a significant COIN stock price downfall.
Coinbase is a popular US-based crypto exchange and this company trades publicly on the Nasdaq exchange under the index COIN, since 2021. Just a few days ago, Coinbase exchange received a Wells notice from the United States Securities and Exchange Commission (SEC) over its crypto staking & particularly listed crypto trade services.
The SEC’s notice over Coinbase crypto services created a panic among Coinbase stockholders. Over the last 5 days of trade price, COIN stock is down by approximately 11.67%.
However, Wells’s notice doesn’t mean that SEC initiated any legal action against Coinbase exchange but it is an advance hint that SEC may take enforcement action against Coinbase in near future.
To this date, the SEC agency failed to explain the suspicious nature of any crypto service under the Coi, base exchange, and also Coinbase is to understand the issue raised by the SEC agency over its services.
Cathie Wood’s Ark investment firm took advantage of this opportunity and purchased 268,928 Coinbase (COIN) shares, nearly $18 million. Now ARK Invest holds 160,887 Coinbase shares.
To buy Coinbase shares, Ark dumped its $27 million worth of Tesla shares.
Since last few years, the Ark invest team showed significant Inclination toward the crypto companies’ stock assets e.g Robinhood (HOOD), Microstrategy (MSTR), etc.
Panic in the crypto space
In the present time, the majority of the US-regulated Crypto companies are under very big stress and feeling unsafe, as top-regulated crypto company Coinbase is already struggling.
Recently USDC stablecoin issuer Circle CEO said that he hasn’t seen such a situation in the crypto sector over the last 10 years.
Read also: Tether CTO says USDT reserves will reach $1.6 billion in excess
