Why Coinbase Global Stock Dropped This Afternoon
Shares of Coinbase Global (NASDAQ: COIN) fell as much as 6.2% in trading on Wednesday as investors sold the crypto sector overall. Shares were down 3.7% at 3 p.m. ET and look like they'll likely close the day lower.
Cryptocurrencies are generally down today with some like Solana and Polygon dropping nearly 5%. When the crypto market falls, it's not uncommon to see Coinbase drop as well.
The more troubling report was an academic study published by SSRN that accuses Coinbase insiders of earning $1.5 million in trading profits from insider trading. The company has already seen one person be charged with insider trading, so a widening legal problem wouldn't be welcome by Coinbase. It's unclear what the outcome of this study will be, but it's not a great headline today.
Source Fool.com
