The stock price of Coinbase (NASDAQ: COIN) plummeted 8.16% to $251.85 on Thursday, continuing to lose its value for the fourth straight day. The price of the largest cryptocurrency exchange went public two weeks ago opened at $381 and instantly surged to an all-time high of $429.54.
“Coinbase, from a stock perspective, has entered bear market correction territory,” David Wagner, portfolio manager, and analyst at Aptus Capital Advisors, told Business Insider.
Coinbase’s debut on Nasdaq saw highly volatile trading since the company went through the initial public offering. The crypto exchange’s value soared to about $86 billion by the end of its first session. However, the stock has been plummeting since then and had hit its all-time low price of $251 amid the bearish stock market conditions.
Wagner said that institutional investors are afraid to make a bet on the exchange platform. He argued that the stock appears to be priced at a very high multiple. In fact, Elon Musk demanded from Coinbase to list Dogecoin once. Additionally, Wagner said that “the lack of a lock-up period may be one reason for the price decrease, giving insiders and early investors little incentive to hold shares.”