SEC’in USA’s largest cryptocurrency exchange Coinbase’After the lawsuit filed by Coinbase, the stock price of Coinbase decreased.
While it remains unclear whether there will be a further decline, a report for Coinbase came from investment bank Berenberg.
According to the news of Coindesk, Berenberg In a research report released today, Coinbase (COIN) shares are not suitable for investment in the near term.
Citing the SEC case as the reason, bank analyst Mark Palmer, citing his previous report, wrote:
“Weak trading volume was expected in the second quarter of 2023 already in COIN.
We think that this weakness in COIN will continue after the SEC lawsuit now due to the environment created by the lawsuit.”
The bank, which reduced its COIN price target from $ 55 to $ 39, said, “Given the significant impact the outcome of the lawsuit has on Coinbase’s US operations, we expect some investors to reduce their Coinbase exposures.” said.
The analyst also stated that 10 US states outside the SEC that allege Coinbase’s staking program violates state securities laws also created more uncertainty in the price of COIN.
Finally, the report also noted that the resolution sought by the SEC would likely require the complete shutdown of Coinbase’s core business in the US, which would have a predominantly negative impact on stocks.
*Not investment advice.
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