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Coinbase stock price rockets amid rival Binance’s woes

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The stock price of the U.S.-based cryptocurrency exchange Coinbase has surged by 18% from last week, rising from about $100 to $118 as of today (Monday). The company attributes this significant increase to the enforcement action against Binance, its rival. In a CNBC interview in London, Brian Armstrong, CEO of Coinbase, stated that companies attempting to evade regulations will find that it is simply not viable.

While Coinbase is enjoying a boost, it has not been immune to legal troubles. The SEC sued Coinbase last June, just a day after suing Zhao and Binance. However, Armstrong believes that these legal challenges have aided the exchange in achieving its goal of “regulatory clarity.” He is confident that they will be able to operate in full compliance and trust.

Coinbase, established in 2012, has positioned itself as the crypto “good guy” and has been selective in its focus on cryptocurrencies, especially those that are not widely accepted or considered unregistered securities by the Securities and Exchange Commission.

The company went public on the NASDAQ on April 14, 2021, but its stock has since fallen by 65% from its initial public offering (IPO) as it faced challenges following the 2022 crypto industry crash and subsequent trading volumes.

Coinbase has previously experienced market dominance after the fall of Mt. Gox, and it is hoping to capitalize on Binance’s decline to make a greater impact this time around.

Featured Image Credit: TechCrunch, CC BY 2.0 via Wikimedia Commons

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