Why Shares of Coinbase Are Falling Today

Shares of the large crypto exchange Coinbase (NASDAQ: COIN) traded more than 8% down as of 12:45 a.m. ET today, as stocks sold off today and after an analyst initiated coverage on the stock. Wells Fargo analyst Jeff Cantwell initiated coverage of Coinbase with an underweight rating, largely on the belief that other large competitors like Binance and FTX will prove to be insurmountable competition. Coinbase has already seen its trading fees compress, and more compression is expected as the environment gets more competitive.