Why Coinbase Global, Inc. (COIN) Crashed on Monday

We recently compiled a list of the 10 Firms Suffer Steep Downfall on Monday. In this article, we are going to take a look at where Coinbase Global, Inc. (NASDAQ:COIN) stands against the other stocks.

Ten companies kicked off Monday’s trading in a bloodbath, mirroring the broader market pessimism, with valuations slashed by double digits mostly due to investor caution brought about by key economic uncertainties.

Wall Street’s main indices all fell in the red, with the tech-heavy Nasdaq recording the steepest downfall with 4 percent.

The S&P 500 declined by 2.7 percent, while the Dow Jones dropped by 2.08 percent.

We have identified the 10 worst-performing companies on Monday and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion in market capitalization and $5 million in trading volume.

A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.

Coinbase Global, Inc. (NASDAQ:COIN)

Coinbase Global, Inc. (NASDAQ:COIN) lost 17.58 percent of its value on Monday to end at $179.23 apiece as investor sentiment was influenced by an overall market pessimism.

Similar to other Bitcoin mining firms, Coinbase Global, Inc. (NASDAQ:COIN) traded lower in line with the drop in Bitcoin prices, which are at the $79,000 level as of this writing.

Investors shunned news that the company’s Coinbase Derivatives LLC, a CFTC-regulated futures exchange, is launching the first 24/7 Bitcoin and Ethereum futures contracts.

“[This would give] US traders uninterrupted access to manage risk and seize opportunities—just like crypto,” it said.

Coinbase Global, Inc. (NASDAQ:COIN) added that it was also developing a perpetual style futures contract which unlocks a key product that US traders “have been missing.”

“Built in response to strong demand from crypto-native traders, these innovations make US markets more accessible, competitive and aligned with global standards,” Coinbase Global, Inc. (NASDAQ:COIN) said.

Overall COIN ranks 3rd on our list of Monday’s worst performing stocks. While we acknowledge the potential of COIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COIN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.