Coinbase Shares Ascend Despite Technical Glitches; Cryptocurrencies Show Robust Growth
Summary:
Despite technical issues and operational hiccups, Coinbase saw an increase in its shares by almost 4% in after-market trading. The marked increase happened even as the platform was troubled by latency and inaccurately displayed zero balances for some users. Amid these challenges, Bitcoin and other cryptocurrencies enjoyed growth, with investment firms experiencing record inflows. The article also highlights the performance of 'memecoins' such as Dogecoin and Shiba Inu, achieving significant gains over the past week.
Despite experiencing technical difficulties due to heightened website traffic, Coinbase shares saw an increase of close to 4% in after-market trading. The cryptocurrency exchange's ticker (COIN) hit its highest point in over two years on the 4th of March, achieving a notable 11% increase that brought it to $229. Furthermore, this positive trend continued after the market closed, with shares rising 3.8%, peaking at $238 as recorded by Google Finance. Even though Coinbase was confronted with operational issues that resulted in the platform showing zero balance for some users or failing to load, the shares closed the day at $229.15, then ascended to $237.88 in the subsequent four hours post-market.
Despite these technical glitches, Coinbase reassured traders that their funds were safe, and the online exchange had taken steps towards mitigating the issue. The company had publicly addressed this concern earlier within the trading day, acknowledging the experience of increased latency for some users and intermittent zero balance displays.
This admittedly isn't the first instance of operational upset for the exchange, with similar issues appearing on the 28th of February and 1st of March. However, the company swiftly resolved the problems, which primarily affected user transactions such as sends, withdrawals and deposits.
The event triggered a reaction from Wallstreet's eminent short-seller Andrew Left's Investment research firm, Citron. The firm advocated for a short-sell on COIN, citing the company as one of the most attractive trading propositions in the cryptocurrency market.
However, even amidst the bumps, Bitcoin (BTC) saw a substantial leap of 7.8% over a day, inching closer to its 2021 all-time peak of $69,000. The American Bitcoin ETFs also experienced their second-largest trading day, with a total volume of approximately $5.5 billion. According to Farside Investors' data, Fidelity's ETF marked a record net inflow of $404.6 million, overshadowing Grayscale's funds.
MicroStrategy, a company that extensively purchases Bitcoin, wrapped up the trading day on an impressive note, marking a 23.5% increase and a closing price of $1,330, a high unseen since the dot-com bubble of 2000. Lastly, high-risk 'memecoins' such as Dogecoin (DOGE) and Shiba Inu (SHIB) also experienced a significant jump, with gains over the past week hitting triple digits.
Published At
3/5/2024 9:01:24 AM
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