Cryptocurrency exchange Coinbase experiences a boost following its listing on the S&P 500, yet share growth is tempered due to a cyberattack.
In a wild day for Coinbase, the cryptocurrency exchange saw a significant share price surge following news it would join the S&P 500 – the first crypto company to make that illustrious list. On Tuesday, shares skyrocketed 24%, just shy of the crazy 31% boost it saw after Donald Trump's election win in '16.
But the good times were short-lived. On Thursday, Coinbase shares plunged more than 5% after revealing it had been hit by a cyber-attack. Names, addresses, and emails were stolen, but login details remained secure. The company expects to take a hit of between $180 and $400 million due to the attack.
This cyber-attack came right after Coinbase scored a major win, announcing the acquisition of Deribit in the digital market's largest deal to date. While that acquisition strengthened Coinbase's position, this attack certainly stings. As Nick Jones, founder, and CEO of digital assets firm Zumo, put it, "This is understandably a huge blow... This attack underlines the critical importance of robust cybersecurity measures."
Despite these setbacks, Coinbase executives remain upbeat. CEO Brian Armstrong says, "Our long-term goal is we want to be the largest financial service app in the world." And as for the UK, Jones suggests the country should be keeping a close eye on crypto developments, as the UK economy has much to gain from the growth opportunities being seized by the US and even the EU.
Meanwhile, Bitcoin, Coinbase's most famous client, surged back above $100,000 last week, but couldn't crack $105,000. At the time of writing, Bitcoin was trading at $102,345.80. And as for Coinbase shares, they were trading at $251.57. Despite the recent dip, shares are up 43% over the past month.
The question is: Can Coinbase recover from this cyber-attack and continue its march towards becoming the largest financial service app in the world? Only time will tell. But one thing's for sure – Coinbase's inclusion in the S&P 500 is a surefire sign that crypto is here to stay, and the mainstream is taking notice.
- Coinbase's CEO, Brian Armstrong, maintains an optimistic stance, aiming for the company to become the largest financial service app in the world, regardless of the cyber-attack setback.
- The cyber-attack on Coinbase, which resulted in a significant financial loss, has emphasized the importance of robust cybersecurity measures, as pointed out by Nick Jones, the founder and CEO of digital assets firm Zumo.
- As the UK economy seeks to capitalize on growth opportunities, it is advised to closely monitor crypto developments, as the US and even the EU are already profiting from them, according to Jones.
