In a research report published by the German Investment Bank Berenberg, the Securities and Exchange Commission’s (SEC) soon to Coinbase that it will take a sanction decision against Bittrex And to Kraken He said it was likely to be similar to the decisions he made against it.
SEC Could Sanction Coinbase
Berenberg estimates that at least 37% of Coinbase’s $736 million first-quarter net income came from transaction fees and margins from trading crypto tokens other than Bitcoin (BTC) and staking services.”
Analyst Mark Palmer added that some of Coinbase’s other revenue streams, such as interest income and custody from USD Coin (USDC), could be plugged into the SEC’s crypto industry network in the near future, adding, “At the very least, these revenue sources are likely to open up commission soon. He will be targeted by the SEC in the sanctions case we are waiting for, he wrote.
The note said that successfully moving away from the US will be a challenge for the crypto exchange, as approximately 86% of Coinbase’s net income in the 12-month period ending March 31 comes from its US operations.
Berenberg said that shorting Coinbase shares is a very risky transaction, especially since about 23% of the publicly traded portion has already been shorted.
Short selling is a way to bet that a price will drop. An investor borrows a security and sells it in the hope that the price will drop.
It then buys back the security and returns it to the lender. The borrower can pocket the difference if he’s right, or pay the difference if he’s wrong.
Wall Street giant Citi lowered its price target for Coinbase from $80 to $65 earlier this month, citing regulatory uncertainty.
*Not investment advice.
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