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Coinbase Stocks Falls by 10% Following Wells Fargo Speech ‘Sell’ [Report]:

Wells Fargo, the multinational financial services company, issued a profitability warning to investors stating that the current market conditions may hurt the publicly traded crypto exchange, Coinbase.

Despite having the early-entry advantage, Coinbase is now facing hot competition from its rivals which have ventured into the space in recent times.

From, CNBC report, Wells Fargo meant that the company would sell COIN shares and set a $57 price target.

Market analyst, Jeff Cantwell, ranked Coinbase with an Underweight rating, claiming that downward pressure on the exchange is close and that the retail pricing is to blame.

Following the projection and analysis, Coinbase shares (COIN) plunged nearly 10% after US markets opened on Thursday –  $60.93 at press time.

Amid the financial industry winter, the cryptocurrency exchange lost more than $1 billion in the second quarter.

Coinbase generated a revenue of $808 million, lower than $2.2 billion a year earlier.

The company has continued to endure the market troubles, even the latest stock decline.

We previously reported how the company was forced to lay off hundreds of employees, and to end their affiliate program.

Apart from trouble from the Crypto market, the company still faces regulation stings, as the US Securities and Exchange Commission (SEC) intensified scrutiny over cryptocurrencies listed on the platform after deeming them as securities.

The regulatory body previously stung charges of insider trading against two former Coinbase product managers.

More recently, it was sued by Veritaseum Capital over patent infringement of crypto transfer technology.

By Meekness Nnoka

Blockchain Analyst & Writer with top-notch Technological background. Enjoys reading and writing fascinating crypto contents. 4 years content creating experience.

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