While Coinbase executives dabbled in periodic and pre-planned stock sales, other major COIN holders have opted for a different approach.
Coinbase Global Inc (NASDAQ:COIN), the US-listed cryptocurrency exchange, has seen its share price soar despite facing a lawsuit from the US Securities and Exchange Commission (SEC) for allegedly offering unregistered securities.
Over the past month, Coinbase shares have risen a remarkable 51%, highlighting the company’s resilience and investor confidence in it in the midst of a tough legal battle. In early June, Coinbase was sued by the SEC. The lawsuit accuses Coinbase of operating as an unregistered national securities exchange and broker, conducting business in violation of regulatory requirements since at least 2019.
The lawsuit alleges that Coinbase failed to comply with regulatory obligations and obtain the necessary operating licenses, as required by federal securities laws. Despite this poor legal outlook, Coinbase has defied expectations, demonstrated resilience and attracted investor confidence.
According to TradingView stats, Coinbase shares have increased by 51% in just over a month. From about $52 per share on June 6, the stock rose to $78.7 on July 7. This significant stock increase underscores the market’s optimism about Coinbase’s ability to handle the SEC lawsuit and maintain its position as a leading player in the crypto industry.
Amidst this increase, prominent Coinbase stakeholders, including top Coinbase executives, sold off part of their equity holdings. On July 6, a total of 88,058 shares of COIN, valued at approximately $6.9 million, were sold by executives, including CEO Brian Armstrong.
according to Recently SEC filing board member Gokul Rajaram sold 4,580 COIN shares, while Chief Legal Officer Paul Grewal sold 1,818 COIN shares. Jennifer Jones, Chief Accounting Officer, also participated in the stock sales, selling 7,335 shares of COIN stock.
Furthermore, Jennifer Jones previously sold 74,375 shares of Coinbase on June 29, resulting in a net gain of $5.2 million.
Coinbase stock: Other major holders continue to HODL
While Coinbase executives dabbled in periodic and pre-planned stock sales, other major COIN holders have opted for a different approach. These “HODLers,” a term derived from a popular crypto meme that encourages long-term holding, have maintained their positions in COIN despite market volatility and executive sales.
For example, ARK Invest, known for its active involvement in innovative and disruptive technologies, including cryptocurrencies, made a large investment in Coinbase by purchasing an additional 400,000 shares in early June.
This investment indicated ARK Invest’s confidence in Coinbase’s future prospects and its potential as a major player in the crypto industry.
Cathy Wood, founder and CEO of Ark Invest, has affirmed her unwavering optimism about Bitcoin’s future potential, predicting that the digital currency will eventually reach a staggering price of $1 million per coin. Wood’s optimistic forecast reflects her long-term view of Bitcoin and its transformative power.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.