Market Meditations | December 29, 2022

Coinbase is now worth less than Dogecoin. The cryptocurrency exchange’s stock has fallen almost 20% over the past few weeks, bringing its total value below Elon’s favorite token.

  • Many crypto investors are memeing on Coinbase all over Crypto Twitter, and it’s hardly surprising as centralized exchanges have been public enemy #1 recently.
  • Coinbase (COIN) trails $DOGE  by about $2 billion. Even so, the memecoin remains king of a very small hill. Dogecoin has fallen ~67% since the beginning of 2022.
  • Some remain bullish on the chance of a rebound, however. ARK Invest recently added over $3 million worth of COIN to its portfolio as the race to the bottom appears to be underway.
  • Edward Moya, a senior market analyst at forex broker OANDA, opined “Crypto traders remain skeptical about holding their crypto on exchanges” and “The fact that dogecoin has a higher market cap than Coinbase shows you that there is still something wrong with the cryptoverse”. 

According to Coinbase, the company had minimal exposure to FTX when it went under, limited to $15 million in deposits reserved for use as business operations and client trades. There’s no doubt that recent market conditions coupled with centralized entities betraying customer trust frequently have made for some truly trying times. If Coinbase is one of the good ones, the climb uphill is going to be arduous.