A Battered Crypto Infrastructure Won't Stop Coinbase's Longest Winning Streak Ever

Shares of cryptocurrency exchange Coinbase have seen a recovery this year after a prolonged crypto winter, and their recent gain has placed the firm on track for its longest winning streak ever.

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Blockchain Global Corp. On Tuesday, COIN, 10.86% shares increased by 8.1% and were trading at at $81.23. For the last seven days, the stock increased, rising by about 50%. Trading started in April 2021.

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Coinbase's recovery has coincided with a 0.31% increase in the price of Bitcoin BTCUSD this year. But, it also comes after the corporation made significant employment cuts and a greater retreat from crypto exchanges the previous year. Shares of Coinbase are still falling.

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Last year's collapse of competing exchange FTX raised issues with fraud, security, legislation, and the resilience of the crypto infrastructure. The collapse of the crypto-friendly bank Silvergate Capital Corp. earlier this month came after that. Signature Bank of New York and SI, -14.88%.

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According to a research note published last week by Oppenheimer analyst Owen Lau, the failure of those two banks as well as Silicon Valley Bank was "jeopardizing blockchain development" in the United States. As a result, he decreased his projected revenue on Coinbase.

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He claimed that the "dramatic fallout of [Silicon Valley Bank], the voluntary liquidation of [Silvergate], and the abrupt suspension of [Signature Bank of New York] have adversely harmed not only the ecosystem of digital assets but also the ecosystem of Silicon Valley."

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Certain crucial components of the digital asset infrastructure, such as Signet, a digital payments platform at Signature, and SEN, Silvergate's defunct exchange network, had "already broken" as a result of the failure of those institutions, he claimed.

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On Monday, Trade Algo reported that Coinbase had ceased supporting Signet while the exchange looked for a replacement and awaited additional details regarding Signet's future. This month, Coinbase made the announcement that, right before Silvergate stopped operating SEN, it had stopped receiving or initiating payments to or from Silvergate.

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