Coinbase shares tumble as bitcoin slide continues, investors fear contagion from FTX collapse

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Brian Armstrong, CEO and Co-Founder, Coinbase, speaks during the Milken Institute Global Conference connected May 2, 2022. successful Beverly Hills, California.

Patrick T. Fallon | AFP | Getty Images

Coinbase shares fell much than 8% Monday, extending a descent that's pushed the crypto speech to its lowest since its marketplace debut successful April 2021. The driblet comes arsenic bitcoin's slump continues and investors interest astir contagion from FTX's spectacular collapse earlier this month.

Nineteen months aft going nationalist with a marketplace headdress of implicit $85 billion, Coinbase has fallen beneath the $10 cardinal people and has mislaid implicit a 4th of its worth successful the past 4 trading sessions.

Questions person been swirling astir the health of FTX's rival exchanges, sparking industry-wide selloffs that person caused immoderate companies to temporarily suspend trading, and others to hole imaginable bankruptcy filings. Mizuho analysts wrote successful a enactment connected Friday that regular volumes successful the manufacture are trending 30% to 40% beneath their mean for the year.

Coinbase CEO Brian Armstrong said successful an op-ed for CNBC connected Nov. 11, that his institution does not person "any worldly vulnerability to FTX," but helium has "sympathy for everyone involved." Coinbase shares are down much than 83% truthful acold this year.

"It's stressful immoderate clip determination is imaginable for lawsuit nonaccomplishment successful our industry, and a batch of radical are losing a batch of wealth arsenic a effect of FTX's struggles," Armstrong said.

Bank of America downgraded Coinbase connected Friday, citing "contagion risk" for the cryptocurrency speech platform, adjacent if it is not "another FTX."

"That does not marque them immune from the broader fallout wrong the crypto ecosystem," wrote Bank of America's Jason Kupferberg said.

Prior to FTX's descent, the marketplace was successful the midst of a crypto wintertime that had sent prices of bitcoin and ethereum tumbling and forced a fig of firms into bankruptcy. Earlier this month, Coinbase reported a revenue plunge of much than 50% successful the 3rd 4th from a twelvemonth earlier, and a nonaccomplishment of $545 million. In June, the crypto exchange slashed 18% of its workforce.

The consequent sell-off has been adjacent much extreme, with bitcoin falling much than 3% connected Monday to its lowest successful implicit 2 years. Ethereum fell implicit 6% connected Monday. Solana, a coin that was touted and backed by FTX laminitis Sam Bankman-Fried, has mislaid implicit two-thirds of its worth successful 2 weeks.

In a substance of days, FTX went from a $32 cardinal valuation to bankruptcy arsenic liquidity dried up, customers demanded withdrawals and rival speech Binance ripped up its nonbinding agreement to bargain the company. FTX filed for Chapter 11 bankruptcy protection Nov. 11.

Bankman-Fried said the company's assets were "fine" 2 days earlier helium was hopeless for a rescue. He has since said successful tweets that he's trying to retrieve deposits for the company's customers.

WATCH: CNBC's afloat interrogation with Coinbase CEO Brian Armstrong

Watch CNBC's afloat  interrogation  with Coinbase CEO Brian Armstrong connected  the FTX fallout

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