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Crypto World

Coinbase stock jumps as top analysts maintain buy rating

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coinbase stock

Coinbase stock jumped by 5% on Friday, a day after the top crypto exchange reported weak financial results, including falling revenues and soaring losses.

Summary

  • Coinbase share price bounced back after publishing its financial results.
  • Its revenue declined, and its profits fell as expenses rose and crypto prices fell.
  • Top Wall Street analysts maintained their bullish outlook while lowering their targets.

Coinbase shares jumped to $147, well above the year-to-date low of $140. It remains well below the all-time high of $445.

Top analysts maintained a buy rating on COIN stock 

The rebound came after H.C. Wainwright maintained its buy rating on the company and set a $350 target. A move to that target would imply a 135% surge from the current level.

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The company’s analysts noted that Coinbase had become a bargain after the recent crash, pushing it to its lowest level since 2024. 

Additionally, they noted that the company would benefit from the CLARITY Act, which has been stuck in the Senate Banking Committee. A meeting between banks and companies in the crypto industry at the White House failed to resolve the key issue of allowing stablecoin rewards.

Other Wall Street companies maintained their buy rating on Coinbase stock even as they lowered their target price. Chris Brender of Rosenblatt Securities lowered the target price from $325 to $240, while Needham’s John Todaro slashed it from $290 to $230. 

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Benchmark’s Mark Palmer also slashed the target from $421 to $267. As a result, the average target among Wall Street analysts dropped to $303 from $400 three months ago.

Coinbase reported weak financial results on Thursday and blamed the ongoing crypto market crash. Its transaction revenue dropped to $982 million in the fourth quarter from $1.5 billion in Q4’24. This slowdown was offset by an increase in subscription and services revenue, which jumped to $727 million.

Coinbase reported significant quarterly losses after marking down its crypto assets like Bitcoin (BTC) and Ethereum (ETH). Its operating costs continued rising as it aims to become the “everything exchange”.

The company has invested in several key products, which it hopes will boost its revenue in the future. For example, it recently unveiled a prediction marketplace and aims to become a stockbroker by introducing tokenized stocks.

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A major risk for Coinbase stock is that some analysts expect Bitcoin to remain under pressure in the near term. In a note on Thursday, analysts at Standard Chartered lowered their Bitcoin target to $100,000 and warned it could drop to $50,000.

Coinbase stock price technical analysis 

coinbase stock
COIN stock chart | Source: TradingView

The weekly chart shows that the COIN stock price has crashed in the past few months as Bitcoin and most altcoins have plunged. It dropped to a key support level, marking the lowest swings since September 2024.

The coin remains below all moving averages, while the Relative Strength Index has moved to the oversold level of 30, its lowest swing since 2023.

Therefore, the most likely scenario is where it resumes the downtrend, potentially to the key support level at $100.

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Crypto World

Crypto Scam Leader Extradited to China to Face Charges

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Crypto Scam Leader Extradited to China to Face Charges

Li Xiong, a key member of a group that allegedly helped crypto scam rings in Asia to move money, has been extradited from Cambodia to China, where he will face fraud and money laundering charges, according to Hong Kong-based news outlet Ta Kung Wen Wei.

On April 1, with strong support from the relevant authorities in Cambodia, a task force sent by China’s Ministry of Public Security successfully escorted Li Xiong, a core key member of the Chen Zhi criminal syndicate, back to China from Phnom Penh, Cambodia,” it said on Wednesday, citing a statement from China’s Ministry of Public Security on WeChat.

Xiong previously served as chairman of Huione Group, an alleged criminal organization that served scam centers in Cambodia that carried out “pig butchering” scams and other investment schemes to steal crypto from victims around the world. 

Huione Group was responsible for one of the largest illicit online marketplaces in the world, handling over $89 billion in cryptoassets.

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Source: Jacob in Cambodia

His extradition comes three months after the arrest of Chen Zhi, the head of Prince Group, which operates Huione Group. In October, it was reported that the US Department of Justice seized 127,271 Bitcoin (BTC) worth more than $15 billion from Zhi.

Related: Hong Kong retiree loses $840K in triple ‘crypto expert’ scam

The US Treasury Department’s Financial Crimes Enforcement Network directed US banks to cut payments and accounts tied to the Huione Group in October.

Authorities ask other Huione members to surrender

Ta Kung Wen Wei noted that several other members of Zhi’s criminal syndicate have been brought to justice “one after another,” citing comments from Chinese public officials.

“Public security authorities will continue to intensify efforts to capture fugitives,” it said, adding:

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“At the same time, they once again warn criminals to recognize the situation, stop before it is too late, surrender as soon as possible, and strive for lenient treatment.”

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