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Why Is Coinbase Stock So Cheap?

Andrew Willis Nov 18, 2022

Why Is Coinbase Stock So Cheap?

Andrew Willis:

The ongoing FTX saga has not made the crypto world look good, and that includes the exchange platform Coinbase COIN. But notice how the stock bounced back after the big reveal from Sam Bankman-Fried?

As equity analyst Michael Miller points out, while the FTX implosion is a negative event for Coinbase in the near term, when it comes down to it, what actually happened was that one of the company’s biggest competitors collapsed. In the long run, that could be a good thing for the now second-largest crypto exchange in the world.

The price action we’ve seen recently in Coinbase stock is yet another reminder of the inherent risks with crypto, with considerations for Coinbase holders at the lower-value transactions lead to lower trading fees ... although the latest meltdown likely helped with trading volume.

For Morningstar, I’m Andrew Willis.

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Andrew Willis

Senior Editor

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Andrew Willis is senior editor for Morningstar Canada, covering stocks, alternative assets, funds, and personal finance. He is the writer and host of two weekly stock features, including Morningstar's Stock of the Week.

Willis previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor. He has also written for Thomson Reuters and CNN.

Willis holds a bachelor's degree in business administration from Bishop's University and a master's degree in journalism from the University of Hong Kong. Follow him on Twitter @Andrew_M_Willis.

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