The U.S.-based cryptocurrency exchange Coinbase’s stock soared by 18% from last week. This is from about $100 to $118 as of today (Monday). Coinbase believes its heightened share price is because of the enforcement action against Binance. In a CNBC interview in London, Brian Armstrong, CEO of Coinbase, said that companies who have tried to skirt regulations will find that it is “just not going to work.”
But Coinbase has not been without its own legal issues. Last June, only one day after suing Zhao and Binance, the SEC sued Armstrong’s Coinbase exchange, and that litigation is still ongoing. However, Amstrong has stated that the legal problem has helped the exchange get within its goal of “regulatory clarity. ” He fully expects that they will be able to come into full trust and compliance.
Coinbase was founded in 2012 and has worked to brand itself as the crypto “good guy” and has been careful with which cryptocurrencies it focuses on — especially those that are not as welcomed or crypto that are considered unregistered securities by the Securities and Exchange Commission.
The company became a public company on the NASDAQ on April 14, 2021. Since then Coinbase stock has fallen 65% since its initial public offering (IPO) as it struggled in the wake of 2022’s crypto industry crash and subsequent trading volumes.
Coinbase has had a brief market dominance before — after the fall of Mt. Gox — and it’s hoping the fall of Binance will give it enough time to make a bigger splash this time around.
Featured Image Credit: TechCrunch, CC BY 2.0 via Wikimedia Commons
