After a second-week of trading, shares in Coinbase have closed at $293.45. That’s a 32% decline from its opening day high of $429.54 on its first day of trading.
Coinbase, the largest US crypto exchange, debuted its COIN stock via direct listing on Nasdaq on April 14 at a price of $381, and quickly found buyers above the $400 mark before closing at $328. After recovering slightly mid-last week, it’s been a steady drumbeat downward since—though the rate remains higher than the Nasdaq reference price offered before trading began.
Prior to Coinbase going public last week, analysts had speculated that the price of the exchange’s stock would likely be closely linked to the health of the crypto market. Today’s action may have proven them right.
Crypto markets lost a collective $400 billion in value based on market capitalization in the last week. Bitcoin, the market’s leading coin, dipped below $50,000 late Thursday night for the first time since early March. It is currently trading just above that mark.
Meanwhile, the San Francisco-based exchange yesterday added the controversial “dollar-pegged” stablecoin Tether (USDT) to its pro trading platform. Tether has come under fire within the last few years over various allegations, including that the stablecoin is used to manipulate the price of Bitcoin.
In February, Tether’s parent company iFinex settled a fraud investigation launched by the New York State Attorney General’s Office stemming from a nearly $900 million hole in the finances of sister company Bitfinex, as well its connections to alleged Panamanian “shadow bank” Crypto Capital.