Autor: dot-traders

• Cowen cited the absence of clarity on a possible trading volume recovery after FTX collapsed 
• Cowen also reduced its price target on the shares
• Coinbase has features that make it one of the safest platforms to trade

Financial services and investment firm Cowen, which has locations throughout the US, Europe, and several in Asia, downgraded cryptocurrency exchange Coinbase shares from outperform to market perform. 

They cited the absence of clarity on a possible trading volume recovery after competing crypto exchange FTX collapsed, CNBC reported. 

Shares dropped to $37 in premarket session

Cowen also reduced its price target on the shares from $75 to $36, almost 50%. In the premarket session, the stock lost 1.5%, falling to $37.14. Coinbase shares lost 84% last year. 

Positive predictions despite current developments 

How Coinbase will perform in 2023 remains to be seen. According to experts, however, the regulated company has an excellent security record and disposes of a number of features that make it one of the safest platforms to trade, buy, and sell crypto. 

Sterner scrutiny from regulators 

The collapse of Sam Bankman-Fried’s exchange sent shock waves throughout the industry. One effect is likely to involve sterner scrutiny from watchdogs like the US Securities and Exchange Commission according to insiders. 

Reduced crypto valuations will lead to lower retail trade volumes 

Lowered crypto valuations will result in depressed retail trading activity. There is still some interest from institutional investors, but they are becoming far more cautious, conducting careful due diligence in each sector. Analysts George Kuhle and Stephen Glagola wrote in a note: 

COIN’s business is significantly correlated to crypto asset prices, trading volumes and volatility.

Visibility remains low 

The leading US exchange’s monthly trading volumes have been declining fairly consistently each month since the universal all-time high in November 2021. 

Visibility remains low into a rebound and a stabilization in retail trading volumes in the current year considering the FTX contagion risks, the macroeconomic backdrop, and their compounded effects on crypto prices.  

The post Cowen downgrades Coinbase to market perform appeared first on CoinJournal.

• Silvergate held deposits for FTX units and Alameda Research
• Silvergate appears to be most at risk from what happened to FTX  
• Shares plunged by more than 40%  

Shares of crypto bank Silvergate Capital Corp. have plummeted. The company says the crypto industry’s breakdown caused a run on deposits, prompting it to fire 40% of its staff and sell assets at a major loss. 

Silvergate held deposits for FTX units and Alameda Research, the company at the core of the crypto exchange’s collapse. Su Keenan reports on Bloomberg Television.

The FTX collapse continues to have ramifications

The bank Silvergate is reeling. It appears to be most at risk from what happened to FTX. They made a big bet on crypto, but the FTX collapse put it in crisis. It’s down 42% in the latest session. It was holding funds and assets for many of these crypto entities, Bloomberg TV reported. 

Shares plummeted by over 40% 

Shares plunged by more than 40% after customers withdrew the equivalent of $1.1 billion of these digital assets deposits in the fourth quarter. That forced Silvergate to load off assets and fire 40% of staff, which put the bank in further crisis. 

Regulators are also eyeing the bank 

Lawmakers are scrutinizing the bank itself due to its affiliation with FTX and some of its deposits. Meanwhile, crypto broker Genesis has laid off 30% of its staff and the former CEO of bankrupt crypto lender Celsius is being sued by the New York Attorney General for defrauding investors. 

All of this news is tarnishing the space even further and dispersing gloom throughout the industry. 

The post Silvergate plunges after crypto meltdown triggered deposit run appeared first on CoinJournal.