The market capitalization of Coinbase just dropped below $10 billion. This time last year, it was more than $70 billion.
Why it matters: The amount of value lost in Coinbase stock is probably greater than the loss of value of FTX equity plus the loss of customer funds held at FTX.
The big picture: The fallout from FTX’s implosion is rippling across crypto markets in the U.S., causing a loss of trust in all the major players.
- BlockFi and Genesis have blocked withdrawals, with Genesis reportedly warning that it, too, might have to file for bankruptcy.
The bottom line: Coinbase is trying hard to make the case that as an SEC-regulated public company, it’s more trustworthy than its rivals. If there’s any kind of flight-to-quality trade in Coinbase’s favor, however, it’s not visible in the share price.