Tuesday, November 30, 2021

Coinbase shares fell by more than 11% after the SEC threatened to sue.

The Takeaway:

Coinbase's shares have fallen by more than 11% after the US SEC threatened to sue the American cryptocurrency exchange.

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Crypto exchange Coinbase’s stock plunged by 11.63% after Tuesday’s close, with the negative trend continuing today in pre-market trade. According to data from Nasdaq, COIN is down by an additional 2.93% at press time, with the pre-market dump bringing the stock down to $258.50. Coinbase’s stock began to plunge amid the overall crypto market crash as the exchange also suffered yet another service outage resulting in transactions being delayed or canceled.

 

Bitcoin fell as much as 11% on the same day El Salvador adopted it is as a legal tender. 

Bitcoin fell as much as 11% on the same day El Salvador adopted the cryptocurrency as legal tender. Many other top cryptocurrencies, including Ethereum, Cardano, Binance Coin, and Polkadot, also suffered double-digit losses as nearly $300 billion was wiped from the market in a matter of hours. Coinbase said that the outage was caused by “a sudden increase in network traffic and market activity,” with the service resumed about 1:40 pm EST on Tuesday. 

 

SEC is threatening to take sue Coinbase over plans to launch its new high-yield product called Lend.

The outages weren’t the exchange’s only concern on the day, however. The San Francisco-based exchange revealed that the U.S. Securities and Exchange Commission (SEC) is threatening to take the company to court over plans to launch its new high-yield product called Lend. The Lend program would pay USD Coin (USDC) owners. The second-largest cryptocurrency pegged to the U.S. dollar, 4% interest on their holdings. Despite six months of discussion between Coinbase and the SEC, the agency now appears to consider the product a security offering. This means it would need to register the product with the agency as such.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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