Banking giant Citi says next month’s move to proof-of-stake for Ethereum (ETH) could be bullish for shares in Coinbase, the largest U.S. cryptocurrency exchange. I’m here.
According to a memo to clients seen by Seeking Alpha, Citi analyst Peter Christiansen has locked his radar for 90 days on Coinbase’s stock price with an upward Catalyst Watch.
According to Kristiansen, the Ethereum merger not only brings “good development” to Coinbase, but could also clarify the regulation of stablecoins.
The former “equates to Coinbase (COIN)’s hundreds of millions of annual blockchain rewards revenue and could stimulate Web 3.0 development,” analysts said.
At the time of writing, COIN is down 74% from its all-time high, but has doubled in price since late June and is currently trading at $93.
Citi’s bullish view on Coinbase comes as the exchange faces new lawsuits from investors who feel they were misled into buying their COIN.
According to court filings prepared by securities litigation law firm Bragar Eagel & Squire, PC, Coinbase has properly enforced the exchange’s policy on what happens to customers’ crypto assets in the event of bankruptcy. did not disclose.
“Defendant made materially false and misleading statements regarding our business, operations and compliance policies. Specifically, Defendant made false and/or misleading statements and/or or failed to disclose that: (i) Coinbase had crypto assets in custody on behalf of its customers, but assets that Coinbase knew or recklessly ignored would qualify as property in bankruptcy; and these assets may be subject to bankruptcy proceedings in which Coinbase’s customers are treated as general unsecured creditors of the company.
(ii) Coinbase allowed Americans to trade digital assets that Coinbase knew or recklessly ignored should have been registered as securities with the SEC; (iii) the foregoing actions put the company at increased risk of regulatory and governmental scrutiny and enforcement action; (iv) as a result, our public statements were materially erroneous and misleading at all relevant times; “
This lawsuit has been filed on behalf of all individuals and entities who purchased or acquired Coinbase Securities between April 14, 2021 and July 26, 2022.
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