Coinbase Global Inc. dropped to a historic low as investors chose to instead dive into speculative cryptocurrencies, Bloomberg reported.
- Coinbase sank for the fourth consecutive day on Thursday, dropping 6% to $256.76. The cryptocurrency exchange set a reference price of $250 for its direct listing in April.
- The drop brings Coinbase down 22% from the close on its first day on Nasdaq, when it started trading at $381.
- The Renaissance IPO ETF that tracks market newcomers likewise fell for the the eighth straight day, marking its longest decline in over five years.
- Thursday’s decline comes as investors headed to cryptocurrencies Dogecoin and Binance Coin, which Coinbase does not offer.
- An analyst said declines are being seen in many of the special purpose acquisition companies (SPACs), initial public offerings (IPOs), and cryptocurrencies which saw a boost in late 2020 and early 2021.
- Another analyst attributed Coinbase’s drop to market expectations that other cryptocurrency exchanges are coming on board.