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Swiper

Swiper

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Jan 8, 2011
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“Goldman Sachs Is Giving Up on Coinbase Stock”

“Goldman Sachs didn’t get it right about Coinbase Global—and is acknowledging that its bullish view about the crypto exchange was off.

On Wednesday, analyst Will Nance lowered his rating for the cryptocurrency-trading platform’s shares to Neutral from Buy, citing a softening earnings outlook.

“In the current macro backdrop, we believe COIN is unlikely to return to recent levels of profitability,” Nance wrote. “In an environment where the market is focused on profitability, recession risk, and the fading of pandemic-driven exuberance in retail trading, we believe COIN’s stock will struggle to outperform in the near term.”

The analyst noted there is downside risk to Coinbase’s revenue if cryptocurrency trading activity drops further. He slashed his price target for Coinbase (ticker: COIN) by 67% to $80 from $240.

Goldman didn’t immediately respond to a request for comment about the timing of the downgrade

Goldman’s move came a day after Coinbase posted disappointing March quarter results. It reported $1.17 billion in revenue, which was below the consensus estimate of $1.5 billion. The company also generated a net loss of $430 million, compared with net income of $388 million in the same quarter last year. Management reiterated it could lose as much as $500 million in adjusted Ebitda—earnings before interest, taxes, depreciation, and amortization—this year under a “prolonged and stressful scenario” for their business.

In recent trading Wednesday, Coinbase stock dived 31% to $50.34.

Looking at the recent trends in the crypto market, there aren’t any signs of a near term turnaround.

Digital currencies have been in free fall. Bitcoin has declined by 34% this year to $31,500, while other coins have tumbled much more. Since November, traders have been fleeing speculative risk assets because the Federal Reserve has shifted to tighter monetary policy. The central bank is raising interest rates and withdrawing liquidity to bring down inflation.

Sentiment for cryptocurrencies has gotten worse this week. A major stablecoin, TerraUSD, which is designed to serve as safer place to store value and maintain a peg to 1 U.S. dollar, plunged by nearly 50% to 51 cents, sparking worries that the selloff may spread to other coins.

Given all the cross currents, it raises the question why top analysts on Wall Street like Goldman didn’t foresee the risks. Coinbase has been one of the worst-performing stocks in the market, with its shares down nearly 80% year-to-date.”

 
Swiper

Swiper

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captaincaveman

captaincaveman

TID Board Of Directors
Oct 17, 2010
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The problem with Bitcoin is that it is backed by nothing - except someone else's (that is holding Bitcoin's) perceived value of it. And, you have to have an on-ramp and off-ramp. Those are regulated and taxed.
So, it's not anonymous. It is possible to have an encrypted, non-public wallet. But, the crypto has to get in the wallet (on the device) somehow. And, make sure you store it someplace that is EMP proof.

I am very much pro decentralized cryptocurrencies. However, they must be backed by something - a stable coin - otherwise you end up with a ponzi scheme. The people that got in last get screwed.
The gov will crash the fake dollar and roll out a CBDC. That's the plan any way. But, maybe I am wrong. Good at that! LOL
 
M

Massive G

VIP Member
Apr 10, 2020
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Where do you guys see it going after the crash? I think the government is behind it they hate crypto and anything else they can't regulate at least for now
 
HDH

HDH

TID Board Of Directors
Sep 30, 2011
2,952
2,284
I think it will go back up over the long haul. I see arguments from both sides but I believe it's the future. If I had extra money when it just hit $25,000 I would have bought more.
 
macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,955
1,609
I still think the possibility exists for a further dip, low 20's. But microstrategy would be in margin call territory with that so they might not let it happen.

I bought more at 26 and considering what to do from here.

I have a decent position. Certainly got skin in the game so I. Not talking from a place of BS. So if that means any thing. Been in this since 2013 and yes, I am not selling. And actually buying here and there.
 
macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,955
1,609
The problem with Bitcoin is that it is backed by nothing - except someone else's (that is holding Bitcoin's) perceived value of it. And, you have to have an on-ramp and off-ramp. Those are regulated and taxed.
So, it's not anonymous. It is possible to have an encrypted, non-public wallet. But, the crypto has to get in the wallet (on the device) somehow. And, make sure you store it someplace that is EMP proof.

I am very much pro decentralized cryptocurrencies. However, they must be backed by something - a stable coin - otherwise you end up with a ponzi scheme. The people that got in last get screwed.
The gov will crash the fake dollar and roll out a CBDC. That's the plan any way. But, maybe I am wrong. Good at that! LOL
Most of what you wrote is inaccurate.

If you are interested in crypto, the research you have done is not very good.

Fwiw, the emp comment is almost funny. And just plain wrong. You can store your wallet in your head if you want. But if you can't write your seed words on a piece of paper and bury it in your yard. No need to fear emp blast ;).
 
tommyguns2

tommyguns2

Senior Moderators
Staff Member
Dec 25, 2010
5,852
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BTC isn't backed by anything, just like the USD. At the moment, it's a heck of a lot easier to print my USD than it is to mine BTC, and it's limited to a maximum amount (21 million, or something like that).

One reasonable concern with any crypto is that as it increases in value and importance as a means of exchange, the more sophisticated the hacking will become. Being able to protect against a theft might be a very lucrative business opportunity for people who understand the process.
 
macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,955
1,609
Interesting article. People love to say btc does not have intrinsic value like gold.

But when looked at in more detail, why does gold, or anything have value...

Interesting look at gold, btc and value




Also interesting article of how gold and BTC compare by jp Morgan

Just general food for thought as some feel BTC has no real value. What makes value?

 
Last edited:
Swiper

Swiper

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Jan 8, 2011
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this is the same clown that told people to re-mortgage their homes and go all in on bitcoin when it was at $69k.

I wonder how many suckers took his advice.
 
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