Why is Coinbase tanking, when crypto is stonking?

Crypto looks like it's back, with bitcoin up by more than 20% in the past month.

Usually, crypto-related stocks like Coinbase, tend to also trend in tandem.

Not this time though.

Coinbase is down back to USD 66 a share. That is around a 20% correction.

So what happened?

The company disclosed that the U.S. Securities and Exchange Commission had sent it a Wells notice, which is typically one of the final steps before the commission formally issues charges.

The notice itself did not specify the details, but with regulators going after Binance as well, this could be a widespread tactic to relook into the business models of crypto companies.

That said, the litigation will not wrap out in just a few days. It would drag on for a period of time.

The long-term prospect is if the SEC is getting tougher on crypto-related companies, then one might need to proceed with more cautiousness.

That aside, do you think its cheap to buy Coinbase now?

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