Shares of cryptocurrency exchange Coinbase Global (NASDAQ: COIN) hit all-time lows on Tuesday. As of 3 p.m. EST, Coinbase stock was down almost 9% and still falling. The move was particularly unusual considering the S&P 500 and many cryptocurrencies, including Bitcoin, were all up today. However, fear is definitely starting to grip investors regarding Coinbase's long-term prospects.

Here's a tangible example of how high fear is running for Coinbase investors: According to data from Morningstar, Coinbase's bonds are currently trading for $0.52 on the dollar. In other words, if the company is able to satisfy all of its long-term debt obligations, these bonds have substantial guaranteed upside. But bondholders would rather sell now than risk Coinbase defaulting later.

There are a couple of things stoking fears for Coinbase. First, rival exchange FTX completely collapsed with spectacular speed mere weeks ago. And FTX's founder Sam Bankman-Fried was consequently arrested less than 24 hours ago. Investors fear that all cryptocurrency exchanges will eventually fall apart in similar fashion, including Coinbase.

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Source Fool.com