Coinbase Enters Fresh Controversy As Stock Plummets, Here’s Why

Profile picture
CoinGape
16w ago2022-07-27

Coinbase released the first part of The Degen Trilogy, the Coinbase-produced BAYC trilogy of BAYC flicks. The Bored Ape Yacht Club is one of the biggest NFT brands in the world. The trilogy is also expected to tie into the launch of the Coinbase NFT marketplace. 

However, in light of the recent controversy surrounding Coinbase, some did not receive the work well. Brekkie Von Bitcoin, a major crypto influencer and the author of Rhyming Bitcoin, stated his disgust with the first part of the trilogy. According to him, the platform is “bastardizing” everything that Bitcoin stands for. 

Series Of Bad News For The Company

Coinbase recently faced a lot of insolvency rumors after many other crypto platforms like 3AC and Celsius were declared insolvent and the company shut down its affiliate programs. Multiple reports stated Sam Bankman-Fried’s interest in acquiring the company. 

The Security and Exchanges Commission also launched a probe into Coinbase regarding the recent insider trading incident in the firm. SEC also revealed that some of the tokens listed on Coinbase are securities. According to the SEC, the platform is not registered with the SEC to be able to do that. 

Cory Klippstein, a major crypto influencer, blasted the platform on their process to list “sh*tcoin” and highlighted that the company does not have a process to weed out securities. According to him, if a token pays sufficient fees and a market maker is willing to support the price, they go ahead with listing the coin. 

It is also recently reported that Cathie Woods’ Ark Investments is selling its shares in Coinbase. Coinbase’s share has fallen more than 21% in a short period to reach $52.93.

Could Coinbase Survive SEC’s Probe

Coinbase has been struggling with a flurry of bad news. However, the platform has received indirect support from crypto leaders and politicians. Senator Pat Toomey of Pennsylvania has chastised the SEC for not publicly declaring the definition of security. 

According to him, the SEC is engaging in regulation through enforcement and might be trying to get a win at the expense of proper regulation. 

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society's biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.