Crypto exchange Coinbase Global not only rattled its already tortured shareholders when it reported horrific results afterhours on May 10, but also its crypto holders, when it added new language to its quarterly filing with the SEC, explaining what could happen to their cryptos at Coinbase if it files for bankruptcy.
In the same breath, it filed a shelf registration with the SEC to raise more money by selling shares, whose collapse has made selling more shares to raise money much more precarious.
Shares of Coinbase [COIN] kathoomphed 26.4% during regular trading today and another 3.2% in afterhours trading to $52.01, down 88% from its intraday peak on April 14, 2021, thereby earning itself a prominent spot in my column, Imploded Stocks.
Turns out, cryptos aren’t fun anymore. They’re money-sucks – I mean fiat-sucks. Prices are plunging. Bitcoin is now at $27,144, down 60% from the peak in November. How the heck are you supposed to have fun trading, when you get powwoozzled on a daily basis? But Coinbase needs people to trade so that it can extract its fees.Coinbase Shares Go Thunkadunk, -88% from High, amid Crypto Chaos, Plunging Revenues, Huge Loss: New Paradigm Where Gambling Tokens Blow Up the Casinos? | Wolf Street
What is the value or meaning of cryptocurrencies, when they charge to even be part of them, and a person loses money on every transaction, via a ‘fee’?
Credit cards are free to use, as long as it is paid back within 30 days, and that is an ‘artificial’ currency, using borrowed money.
Banks do not charge a person to receive or write checks and/or do transactions using cash.
Cryptos charge for everything, much like a mafia boss, who takes a cut of EVERYTHING.