Coinbase (NASDAQ:COIN) stock has dumped more than 12% in intraday trading on Thursday, the company’s shares currently poised at $82.80. The downside has the stock losing around $11.30 since trading on Wall Street on Thursday.
Thursday’s losses for COIN come after Coinbase posted more than $1 billion in losses for Q2, the loss reflecting a downside of nearly $5 per share. This is also happening amid a broader lull across equities, with both S&P 500 and Nasdaq struggling to hold onto Wednesday’s gains.
COIN price – why is Coinbase stock down?
The Coinbase stock is engulfed in a bearish battle, the dip coming after reports emerged the crypto exchange is being investigated by the SEC in relation to the platform’s staking programs.
In July, the SEC announced a probe against Coinbase over allegations of listing unregistered securities. This came days after the agency charged the exchange’s former product manager for insider trading, with the listing of nine alleged security tokens even seeing Binance US delist the Amp (AMP) token.
The latest investigation against Coinbase relates to its staking and yield farming services, the exchange noted in its Q2 report. According to the platform, the SEC had send “investigative subpoenas” asking for details and documents on the programs.
The negative news seems to be weighing COIN down and could see the token flip lower. The main support levels remain recent lows seen in July.
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