Coinbase has been struggling lately. About two weeks ago, an ex-Coinbase product manager was charged with fraud over an alleged insider trading scheme involving crypto. Then last week, Coinbase shares dropped more than 20% after news broke that it’s facing an SEC probe into whether the platform is offering unregistered securities.
Even Cathie Wood seems to be losing faith in Coinbase. Her Ark Investment Management firm bought about $3 million worth of Coinbase shares back in May. But in response to the insider trading investigation, the firm sold more than 1.4 million of its Coinbase shares – which were worth more than $75 million.
Fraud charges and SEC investigations are never a good sign. So Coinbase investors — and crypto investors in general — have reason to be concerned.
In this episode of Crypto Insider, Vin Narayanan and Allison Brickell discuss what Coinbase’s struggles mean for investors — and what its future might look like.
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