Goldman Sachs Cut its Hype-and-Hoopla Creature Coinbase to Sell after it Collapsed 87%, as Crypto “Trading Activity Dries Up”
By Wolf Richter
A chart like this is an indictment of Wall Street and the hype-and-hoopla machine that pumped and dumped this stuff on the most gullible retail investors ever.
Crypto-trading platform Coinbase hired Goldman Sachs in late 2020 as a financial advisor for its efforts to go public. They decided eventually to go public via a direct listing. Coinbase was hyped to the nth degree by Wall Street and by the whole crypto pump-and-dump club. Goldman Sachs became the first listed of the joint managers of the direct listing, followed by J.P. Morgan, Allen & Co., and Citigroup. Goldman collected huge fees for its efforts. On April 14, 2021, Coinbase shares [COIN] started trading at $381 a share then spiked to $429.54 intraday, and closed at $328.28, giving it a market cap of about $88 billion.
Over the 16 months since that propitious intraday high, Coinbase shares have collapsed by 87%, to $56.40 at the moment. And today, after stock jockeys and dip buyers had taken huge losses in their Coinbase shares, Goldman Sachs cut its own creature to “sell” and cut its price target to $45. And shares dropped about 10% by mid-day today.
A chart that looks like this – and my Imploded Stocks column is full of them – is an indictment of the Wall Street banks and the hype-and-hoopla machine that pumped and dumped no matter what into the laps of the most gullible retail investors ever, chasing after the most fabulous get-rich-quick schemes ever. It takes two to tango. The 10% plunge today is barely visible after this utter collapse:
On June 14, following the hiring freeze announced on June 5 and reports of rescinded job offers, Coinbase announced that it would lay off 18% of its workforce. This was easy to do since the company switched to working-from-home during the pandemic in May 2020 – it became what it called a “remote-first” company – which was made permanent in 2021. And 1,100 laid-off people found out via personal email after they’d been locked out from their corporate emails and other access. So that was easy.
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Continue reading this article at Wolf Street.
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