Coinbase bonds: The FTX saga undermines the credibility of Wall-St-Möchtegern

For supporters of the cryptocult, the fall of FTX is a severe test of faith. To pass, one has to believe that the collapse of the digital platform has strengthened the sector. The former CEO Sam Bankman-Fried must be dismissed as a false prophet.

The drop in the price of bonds, which is issued by Coinbase, a cryptoplattform listed in New York, suggests that this is wishful thinking. FTX's problems were due to bad mismanagement. Falling prices for the bonds emitted by Coinbase show that even a crypto business with the surrounding of the Wall Street intentability carries a high risk.

Coinbase Notes In 2028, a little more than $ 58 per dollar are traded, compared to 94 cents a year ago. A convertible bond has fallen to the needy level and is traded on the dollar at 55 cents.

Coinbase seemed to offer investors the opportunity to invest in the boom of the crypto trade instead of investing even in digital assets. But fear is contagious. The collapse of tokens like Luna and the end of FTX has hit the entire sector.

The Bitcoin price has more than halved this year and is currently around $ 17,000. The results of Coinbase for the third quarter reflect the darkening prospects. The value of the commercial volume fell by more than 50 percent to $ 159 billion in the year, which contributed to an input tax loss of $ 545 million.

The market value of Coinbase fell by 80 percent to $ 10 billion last year, compared to a decline in NASDAQ by 66 percent. According to data from S&P Capital, the market capitalization only corresponds to the triple of the forecast sales for 2022, compared to 25 times.

Coinbase is a solid proposal as Bankman-Fried's imaginative undertakings. The company lacks the same conflicts of interest. As of September 30th

true believers see the "crypto winter" as a time of tribulation. Secular investors, especially those in coin base bonds, are rightly cynic. The securities gradually resemble relics of a past than the capital base of a new type of stock exchange.