Coinbase Could Become A New Crypto Powerhouse
Coinbase continues to see itself in the spotlight of crypto adoption. Since it's creation all the way back in 2012 the company has become one of the pivotal places for crypto adoption and buying into it. Heck I even used it myself at first for a number of years buying up bitcoin and then Ethereum at $11 a pop.
Since then Coinbase has only been adopted more and more by the masses and in 2020-2021 become a powerhouse as adoption reached an all time high and a IPO was released for the stock.
Since then however the price of the stock has fallen drastically which is pretty on point with any IPO as people sell out their shares early instead of holding on to them. But shortly after the SEC started to attack coinbase after the mess of FTX and try and slap a bunch of random fees on them. However since then Coinbase has taken the SEC to court of which many people speculate that the base of the SEC case is rather light and most likely will not hold up. (A great thing for crypto)
The stocks price has been slowly holding steady and a small increase since then. But today it shot up by over 10% and after hours by another 1%. It's most likely that this stock will continue on it's way up for the next few days as block rock launching the ETFs will over 27 trillion in assets has named Coinbase as the surveillance branch of the ETF. This should shore up the security feature the SEC marked for the ETF to not pass giving them now no reason not to pass the ETF. When that happens we will most likely see the floodgates open that mimic the launch of this ETF which means Coinbase is set to start providing surveillance and fees on ETFs over trillions of dollars.
This rather passive income source for Coinbase will most likely be massive and skyrocket the price of Coinbase to levels we saw during the first release of the stock. Coinbase mainly makes money off of trading and staking fees on the platform so adding trillions of dollars in higher asset management fees will most likely make any current fees they are earning small.
Coinbase is looking like it's going to be a powerhouse in crypto adoption once again in the US markets and there is very little competition to it right now and most likely in the near future. This could almost bring up a monopoly on the company in which they might need to split further making holding this stock an even more powerful juggernaut as often when companies split it is shared with their share holders.
*This article is for entertainment purposes only and is not financial advice. Do your own research before investing and take responsibility for your own actions.
Posted Using LeoFinance Alpha