Why is Coinbase stock at an all-time low after its marketplace launch

cnbctv18.com:

Coinbase announced its NFT marketplace in October 2021, and its launch has been much awaited since then. However, it failed to live up to the excitement as the company stock continued to trudge through the mud.Since the ‘Crypto Winter’ that started in November 2021 and continued well into the first quarter of 2022, all crypto tokens have struggled to regain their lost footing.

However, the sharp free fall of Coinbase stock belittles the YTD performance of even Bitcoin and Ethereum, which have recorded a 16.7 percent and 23.8 percent drop, respectively, in the same time frame.The stock’s dismal performance over the last few months even caused JPMorgan analyst Kenneth Worthington to cut his price target for COIN by 31 percent. His revised price target stands at $250, and even that seems beyond reach for now.Also Read: 5 blockchains with the fastest transaction speedsHe explained the new target price to his clients in a note that read, “The crypto markets are in need of some excitement in terms of new products and/or new use cases to continue to drive the crypto markets to becoming more mainstream, thus driving activity levels.”Other crypto stocks have been dragging their feet as well this year.

Since the start of 2022, Silvergate Capital is down 14 percent, Marathon Holdings has fallen 44.8 percent, Riot Blockchain has slipped by 47.9 percent, and Terawulf is down by a massive 68.8 percent.Despite diminished investor interest, which is evident from the massive selloff of Coinbase stocks, Owen Lau, an analyst at Oppenheimer, remains bullish. He believes that investors need not panic as fresh opportunities are now on the horizon.