Coinbase Stock: What’s happening?
Storing your your holdings on a centralized exchange is never without risk. In the end, you have no say in what they can do with your money. Coinbase, one of the well-respected exchanges, has every reason to offer a pleasant experience.
It’s probably safer to put your bitcoin in a cold storage cryptocurrency wallet. Ledger if you have a lot of it and don’t plan to exchange it anytime soon. For instance, if you misplace your private key, all of your money is lost forever. Thus, you must be knowledgeable in your field.
You should also keep your money in a safe cold wallet if you plan to hoard it for years at a time. You can never predict what will happen to the exchange where you invest money. However, in general, I think it’s ok to retain your money on Coinbase. This is especially true if you want to trade or sell your bitcoin in the coming months. There isn’t much of a chance that something significant will occur then.
The bitcoin exchange Coinbase was sued on September 22 by Varitaseum Capital LLC, a blockchain-based financial software business in New York. The Delaware lawsuit claims that Coinbase infringed on the Veritaseum Capital 566 Patent. The patent essentially describes the bitcoin payment and transfer technology utilized by Veritaseum, which is said to be present in Coinbase’s Pay, Cloud service, wallet, website, and app.
Stock in Coinbase plummets
It appears that an out-of-court settlement was attempted. However Coinbase remained unresponsive, so a lawsuit was launched with a $350 million damage cap. 16th factual allegation Claims: “Defendant had previous knowledge of the ‘566 Patent,’ should have known. Or at the very least was intentionally blind of it. The ‘566 Patent’ has been known to the defendant since at least July 3, 2022, if not before via other parties or sources. The patented technology will also no longer be used by Coinbase in its services.
The shares have been trading in a wide range between $59.43 to $84.58 during the past month, remaining below all moving averages. A support line at $61.87 and a resistance range from $71.81 to $74.29 are indicated by technical analysis.
The shares are a moderate buy. With the average price in the following 12 months rising to $96.50, or 55.95% more than the share price at the time of writing. Which is $61.88. Furthermore, out of the 17 Wall Street analysts who cover the company, 8 have a buy recommendation, 7 have a hold rating, and 2 have a sell rating.
This is not the first legal dispute that Coinbase has encountered. On August 31, a number of investors filed a class action complaint alleging that the company had made false and deceptive claims about its operations, business, and compliance procedures.
Additionally, accusations of insider trading against Coinbase have rocked the company. As a result, investors who are considering staying away from this stock may be right. If the lawsuits reach a more advanced stage and additional information on possible misbehavior by Coinbase becomes clear.
