A recent report from the Financial Times shows that Coinbase Exchange risks losing control due to the White House's enthusiasm for Crypto. It's enabled “Covering the competition.”
Bitwise's Ryan Rasmussen told FT that the US exchange giant may have lost its head start.
Coinbase stocks stumble
You can't convey this based on Coinbase's stock performance. July, AS Reported by U.Todaythe company's stock has first won a new record since its first public offering in 2021.
Stock has undergone an adjustment of about 33% since its peak at $444. That said, it has increased 25% since the beginning of this year, up 178% from the low 2024.
The stock is under some degree of pressure due to the overwhelming revenue recorded in the second quarter of the year.
Growing competition
According to various analysts, the fierce competition possible due to new crypto-friendly US rules poses a serious challenge to Coinbase.
In addition to facing an increase in rivalry in the trading sector from Asian exchanges, Coinbase's custodian business is threatened by traditional financial players such as BNY Melon.
That said, some industry participants believe that more competition will actually be a positive development, as they only have one major custodian.
