Kraken Crypto-Staking Shutdown: Why Coinbase Stock is Crashing
US based crypto exchange Kraken was forced to shut down its crypto-staking service by the SEC and pay a $30 million fine.
This news sent the crypto markets crashing including Bitcoin and other crypto stocks. Coinbase stock in particular fell 14% after the news was released and continues to crash in February.
Coinbase is probably the most risky crypto stock to own right now because Coinbase CEO Brian Armstrong has big plans for the company’s staking product in the future.
Coinbase CEO Brian Armstrong Went Off on Twiter After the Decision
Armstrong vented his frustrations on Twitter where he attacked SEC chairmen Gary Gensler and called out for less staking regulation.
Why? The SEC will most likely suspend Coinbase’s crypto staking service and shut down a growing revenue source for the company. Coinbase has tried to diversify away from trading revenue since the crypto 2021 bull market by launching several other products to its users.
I’m Buying the Dip on Coinbase Stock
It’s not the best news to hear but this presents a good opportunity to buy more shares of COIN stock before the 2024 crypto bull market run.
Coinbase has well over 100 million verified members and gained market share after the collapse of FTX. I think the company will surprise investors in 2023 and I believe it’s a good long term hold.