Just In: Wells Fargo Flags Major Concerns Over Coinbase

Wells Fargo, a multinational financial services company has flagged a major concern against Coinbase, which can lead to a dip in the Crypto exchange share prices.

Coinbase share prices to drop?

According to CNBC, Wells Fargo initiates Coinbase with an underweight. The firm has cited increasing macroeconomic pressures as the possible negative catalysts. Coinbase is currently trading at $65.29. It is down by 3% in premarket trading.

Wells Fargo stated that they believe in the value of the crypto exchange. However, the firm sees the early mover advantage but now that has been eroded due to competition.

Meanwhile, Coinbase share prices have dropped by more than 73% over the year to date basis. Recently, US SEC filed a lawsuit against the crypto exchange platform’s official over insider trading.

The Commission alleged that while employed at Coinbase, Ishan Wahi assisted to arrange the public listing announcements. This act included which digital assets should go for trading among the public.

However, the crypto exchange used to treat these details as confidential. Meanwhile, from June 2021 to April 2022, the Coinbase official tipped the timing and content of the listing declaration to its brother. These crucial details helped them to make more profit as crypto prices surge over the increased listing announcement.

As per reports, the alleged officials purchased at least 25 crypto assets. However, around nine of them were securities.

Crypto market on a decline?

Earlier, Coingape reported that Coinbase got sued for patent infringement for crypto transfer technology. The complaint states that Veritaseum Capital accused the crypto exchange of violating intellectual property rights.

However, Coinbase’s share price has been on a decline due to the negative outlook of the market. Data depicts that the trading volume on the crypto exchange is on a decline. Meanwhile, the global crypto market cap has dropped to stand under the vital $1 trillion mark.