Is Coinbase Losing its Shine? Investor Jim Cramer Thinks So
The value of Coinbase Global Inc (NASDAQ: COIN) has recently fallen by almost 30%, but Jim Cramer, a well-known investor, does not consider it a good investment opportunity.
Cramer expressed his disappointment with the crypto exchange’s lack of inflows during the recent bank failures on CNBC’s “Squawk Box.”
He thought that Coinbase would have benefited from the failure of other banks and attracted more investors, but it did not happen. Therefore, he would not invest in it.
Coinbase recently received a Wells notice from the Securities and Exchange Commission for violating US securities laws. Despite this, Coinbase stock is still up 90% year-to-date.
On Thursday, a Bank of America analyst reported that Coinbase’s transaction volumes remained flat during Q1 and that the company missed consensus estimates by $24 billion.
READ MORE: Dogecoin Price Crashes After Twitter Returns Bird Logo
This is notable because transaction volume contributes significantly to its revenue. Jason Kupferberg also reported a 6% decline in app downloads and reiterated his “underperform” rating for Coinbase stock.
He added that USDC‘s market cap had fallen 24% since the bank crisis began, which could add risk to interest income estimates over the next few quarters.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
