Coinbase Soars 381% In 2023 On Binance Legal Woes, Resurgent Crypto Market

Updated: 21 December 2023

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Coinbase’s shares have soared 381% this year, outperforming Bitcoin and tech giants including Nvidia as it is boosted by Binance’s legal troubles in the US and a resurgent crypto market.

COIN stock reached $168 on Dec. 20, marking a 20-month high as it easily outstripped Bitcoin’s 160% gain and Nvidia’s 236% rise.

Coinbase Gains From Binance’s Pain

Legal and regulatory troubles at Binance, the world’s biggest crypto exchange, helped boost Coinbase as Binance hemorrhaged market share.

As the world’s largest cryptocurrency exchange, Binance has been facing regulatory scrutiny and a series of setbacks in the U.S., prompting many investors to flock to Coinbase as a more reliable alternative.

Last month, the crypto exchange agreed a $4.3 billion settlement with the Department of Justice to settle criminal charges of money laundering and sanctions violations levelled against it. Zhao was fined $50 million and agreed to step down as CEO for three years.

On Dec. 18 a US court approved a settlement deal between Binance and the Commodities Futures Trading Commission (CFTC) that involves a payment of $2.7 billion by the exchange and a $150 million fine for co-founder Changpeng Zhao (CZ).

Coinbase shares also have been buoyed by a booming crypto market, which is up 121% so far this year, according to the S&P Cryptocurrency Broad Digital Market Index.

The expansion of PayPal integration in Germany and the UK has broadened the platform’s global reach, further contributing to its growth.

Cathie Wood’s ARK Invest Sells COIN

The surge has occurred even as Cathie Wood’s ARK Invest takes profits on one of its core holdings. ARK sold COIN shares worth $24 million yesterday and has sold more than $174 million of the stock this year as it trims holdings seemingly with every high.

https://twitter.com/crypto_rand/status/1735235487688770016?s=20

COIN is still 52% down from its November 2021 all-time high.