Analysts at HC Wainwright said the crypto winter of 2022 no longer had any impact on related stocks.
HC Wainwright believes the crypto winter is over and has called for a buy on Coinbase (NASDAQ:COIN) stock. According to the New York-based investment bank, Coinbase will benefit from the growth of the global digital asset economy sooner rather than later. H.C. Wainwright released a file statement On Wednesday that confirmed its bullish trend for crypto-asset prices.
The investment banking platform wrote:
“Crypto-asset prices are up 45% since the beginning of the year, supported by a 67% increase in Bitcoin’s price, which signals to us that the crypto winter is over and that we’ve probably now entered the next bull price cycle for BTC (we didn’t factor in current estimations), which is Something that has historically been caused by significant growth in total cryptocurrency market capitalization, growing retail, institutional adoption, and increased cryptocurrency trading volumes.”
Summarizing these key metrics as drivers of Coinbase’s operating results, including transaction revenue, HC Wainwright also said:
“(As a leading exchange in the US and globally), we believe Coinbase is uniquely positioned to benefit from the large and rapidly growing global crypto economy due to its trusted brand, user-friendly products, and focus on compliance and regulation, and we expect the company to gain market share in 2023.”
According to the bank, Coinbase’s revenue will become more “permanent” over time due to its increasingly alternative sources of income. Besides generating income from fees based on transactions, Coinbase has begun to lean towards subscription and service revenue.
HC Wainwright Analyst Names Coinbase As The Only Exchange Valued Over $10 Billion In Light Of Crypto Winter
HC Wainwright analyst Mike Colonise posted a “Buy” rating for Coinbase stating that “the rewards outweigh the risks at these prices.” Moreover, the analyst mentioned that COIN, which is currently trading at $54.17, is a “rare asset” that is unlikely to change in the near term. Colonies also noted that the major cryptocurrency exchange is the only publicly listed US company with a market capitalization of more than $10 billion. As a result, the analyst concluded that competition for investor capital is still very limited.
Although the Nasdaq-listed coin closed down 3% on Wednesday and 85% below its November 2021 peak, Wainwright analysts see the stock as still an attractive prospect. These analysts say Coinbase’s share price levels provide investors with an attractive entry point because the shares are trading at a 35% discount to all-time highs.
Coinbase vs. the SEC
In other recent Coinbase news, the exchange has filed a lawsuit against the Securities and Exchange Commission (SEC) over differences in regulatory guidelines for cryptocurrencies. In its lawsuit, the American Stock Exchange asked the court to seek clarification of cryptocurrency from the securities regulator. Coinbase called on the Securities and Exchange Commission (SEC) to respond to its July 2022 petition immediately. In its previous petition, the exchange suggested that the Commission propose and adopt clearer regulatory guidelines for the cryptocurrency space in the United States through its own formal rule-making process. Since then, more than 1,700 individuals and entities have submitted comments on the Coinbase petition, also calling for more regulatory clarity from the SEC.
Yesterday, Coinbase responded firmly to Wells’ notification from the SEC last month, claiming that there was no violation of securities laws. The exchange’s chief legal officer, Paul Grewal, accused the regulator of refusing to engage in meaningful dialogue on crypto regulations. Moreover, Coinbase also noted that the SEC has been scaring off several other exchanges about violations of the securities law. However, Coinbase has expressed its intention to remain firm as it has not committed any wrongdoing.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.