Today's 3% Surge in Coinbase Stock Could Be a Sign of What's to Come
Today, Coinbase (NASDAQ: COIN) is finally seeing some investors hit the bid, with this prominent cryptocurrency exchange surging 3% as of 11:45 a.m. ET. This move comes amid a broad-based market recovery, with most risk assets rising today as the U.S. dollar shows signs of cooling down.
The overall cryptocurrency sector rose 3.7% over the past 24 hours, with the Nasdaq exchange also shooting 0.7% higher. Risk-on sentiment in today's market has led to outsize gains for more volatile equities and tokens, leading to a more bullish outlook for Coinbase, which relies heavily on trading volumes from retail investors for its revenue and earnings.
That said, it's not all roses for this centralized crypto exchange. There are expectations that the existing crypto regulation framework put forward by the White House earlier this year could evolve over time, putting pressure on centralized entities like Coinbase. There's also a recently announced $350 million patent infringement lawsuit from blockchain company Veritaseum, which seeks damages from Coinbase and others for allegedly using its patent unlawfully.
Source Fool.com
