>>144670
They (coinbase) are trying so hard to not have all those classified as securities (That is basically all they are-and a rare point that I will agree with "gary" on and it was heavily shorted becauseof all the SEC noise about the regulations so they do this and fry the short interest in it
Coinbase’s BlackRock Pact Reinforces Crypto Status, Burns Shorts
The crypto winter that has dogged Coinbase Global Inc. for nearly nine months might finally be showing signs of thawing.
Shares of the largest US cryptocurrency exchange surged as much as 44% on Thursday, the most intraday since its 2021 direct listing, after announcing a partnership with BlackRock Inc. to help institutional investors manage and trade Bitcoin. The rally puts the stock on track for a third straight day of gains and sets it up for a record weekly rally.
For Coinbase investors, the news is a much-needed signal that its status as a giant in the crypto sector remains rock solid. To be sure, shares are still deeply in the red this year, down more than 60%.
“After this validation, it is possible that Coinbase will be able to partner with more traditional financial industries,” said Owen Lau, an analyst at Oppenheimer & Co. “It shows that even with the size of BlackRock, they are going to partner with a crypto-native company, rather than building their own capabilities.” The sudden surge added $6 billion in value to the company’s market capitalization, bringing it back above $20 billion for the first time since mid-May. While that’s more than double the size of rival Robinhood Markets Inc., it’s a far cry from the peak valuation near $75 billion from Novmeber, when Bitcoin was trading at a record high.
The company has faced a wave of headwinds in recent months as its trading volumes dwindled amid a plunge in the price of Bitcoin and other digital tokens. It’s also facing a probe from the US Securities and Exchange Commission into whether it improperly lets US customers trade assets that should have been registered as securities.
Short sellers, meanwhile, are taking a beating as the stock extends its sharp rebound from July. While shorts are still up more than $800 million this year in mark-to-market profits, those returns are 40% lower than they were prior to Thursday’s jump, according to S3 Partners’ managing director of predictive analytics Ihor Dusaniwsky. “We expect continued short covering in Coinbase as BlackRock’s announced partnership puts a python-like squeeze on short sellers,” he said.
Shares sank more than 21% on July 26 after funds controlled by Cathie Wood sold roughly $1.4 million of stock in the company holdings, worth about $75 million at the time.
Thursday’s move is also notable because it comes on a day when prices of Bitcoin, Ether and other popular digital assets are all lower. The stock has maintained a tight correlation to the world’s largest cryptocurrency since it began trading last year.
Other cryptocurrency-related stocks were also higher following the BlackRock deal, with firms including Marathon Digital, Riot Blockchain and Silvergate Capital all rising at least 5%.
https://www.bnnbloomberg.ca/coinbase-s-blackrock-pact-reinforces-crypto-status-burns-shorts-1.1801578
f this was anything but a short squeeze it would have retained the rise- but since it isn't it don't-doesn't even look like it's gonna hold what it has now
and on the day after this
Coinbase ex-manager pleads not guilty to insider trading charges
A former Coinbase Global Inc product manager and his brother pleaded not guilty on Wednesday to wire fraud charges in what U.S. prosecutors called the first insider trading case involving cryptocurrency.
Ishan Wahi, 32, the former product manager, was arrested last month in Seattle on charges he shared confidential information with his brother Nikhil and their friend Sameer Ramani about forthcoming announcements of new digital assets that Coinbase would allow users to trade.
Nikhil Wahi also pleaded not guilty during an arraignment on Wednesday in Manhattan federal court before U.S. District Judge Loretta Preska. Ramani, who was also charged, is at large.
Prosecutors said Nikhil Wahi and Ramani used ethereum blockchain wallets to acquire the assets and traded at least 14 times before Coinbase announcements in June 2021 and April 2022. The announcements typically caused the assets to rise in value and generated at least $1.5 million in illicit gains, prosecutors said.
Coinbase is one of the world's largest cryptocurrency exchanges.
David Miller, a lawyer for Ishan Wahi, said the charges should be dismissed because insider trading needs to involve securities or commodities and this case did not.
Miller also said Coinbase tested new tokens before it publicly listed them, meaning the information his client was accused of sharing was not confidential.
Noah Solowiejczyk, a prosecutor, countered that the information was nonpublic and the prosecution was consistent with previous wire fraud cases.
U.S. regulators are weighing how to oversee cryptocurrency trading.
Coinbase did not immediately respond to a request for comment. Last month, the company said it had shared with prosecutors its findings from an internal probe into the trading.
Bail for the Wahi brothers was set at $1 million each. Their next court appearance is scheduled for March 22. The U.S. Securities and Exchange Commission has filed related civil charges against them.
https://news.yahoo.com/coinbase-ex-manager-pleads-not-171616030.html