By
Temitope Olatunji
April 18th, 2024
Despite the unpleasant situation and poor performance with its 2022 performance, Coinbase is confident in a better 2023.
Crypto company Coinbase (NASDAQ: COIN) is optimistic about 2023 despite recording its all-time low since its initial public offering last year, declining 85.88%. On this day last year, the company traded at $268.15 before the crypto winter that affected many. It has amassed so much loss and now sells at $35. It has been the tough year 2023 for crypto, and many crypto firms had their own share, with many dismissing workers, including Coinbase
Apart from its one-year loss, Coinbase has also shed more than 86% since the year started. The company dropped 48.30% in the last three months and declined 23.26% over the past month. In the last five days, COIN has lost almost 13%. Even with Coinbase’s poor performance for the past year, the chief investment officer and portfolio manager at Ark Invest, Cathie Wood, purchased an additional 296,578 shares of Coinbase stock worth $11.9 million. With the latest purchase, the investment fund owns 6,139,480 Coinbase worth nearly $215 million at the current trading price.
Before Coinbase let go of 1,100 workers in July, the company initiated a hiring freeze and pulled job offers for recruits. According to CEO Brian Armstrong, the company had to reduce headcounts due to changes in economic conditions and a possible recession. Armstrong said Coinbase was preparing for the worst.
Coinbase Is Positive for 2023
Despite the unpleasant situation and poor performance with its 2022 performance, Coinbase is confident in a better 2023. The company took to Twitter last week to share images of transformed innovations that were initially doubted. It mentioned the evolution of the telephone, airplane, elevator, and cars. Coinbase published three key themes expected to prevail in 2023 against the backdrop of the 2022 crypto winter. The company highlighted the points in its 2023 Crypto Market Outlook, released on the 20th of December. The company believes that ecosystem maturity, relative market liquidity, and sustainable tokenomics would trigger digital asset selection to focus on top cryptos like Bitcoin and Ethereum. Also, this year’s poor crypto performance has discouraged investors from altcoins, and it may take months to get their attention back. Additionally, Coinbase wrote regulatory frameworks that will shape the next digital asset market cycle.
“Looking ahead, we believe the evolution of the crypto ecosystem is putting subjects like tokenization, permissioned DeFi, and web3 front and center. Meanwhile, bitcoin’s core investment thesis remains intact, and Ethereum seems to be outpacing its layer-1 competition in terms of network activity. We are seeing a greater variety of use cases for non-fungible tokens outside of art, like using NFTs to certify and authenticate real world assets or as ENS domain names. Stablecoins are not one of the largest sectors in the crypto ecosystem with an outsized role in storing and transferring wealth.”
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