I love watching COIN not because I'm an investor in it but because I find it to be one of the more fascinating stocks as of late. Coinbase (stock ticker COIN) went public on 4/14 just a little over a month ago and how has the stock performs? Well as one might expect from any IPO a huge sell off...

Down nearly $100 since the IPO was released this IPO follows many if not all IPOs with a high release to a drastic few month sell off before it levels out and finally starts to climb in price again.

What's New With Coinbase

Coinbase has done a lot for the crypto ecosystem. Like them or not they where one of the few that made it easier for people to get involved with crypto.

With mounting competition however the company needs to start innovating and improving it's options. Once of those options they are currently pushing forward with are convertible bonds.

As of writing this the company has about $1.3 Billion in convertible bonds. This means that the bonds can be converted back into shares of stock thus increasing the amount of shares and diluting existing shares of stock. One of the plays some investors will do is short the stock while buying these convertible bonds as the two should counteract each other and issue a sell off on the stock. Yep, another case of if you have tons of money you can manipulate a stock in your favor.

Why are these bonds being issued? The company reported them as being issued to boost up the balance sheets and help with working capital and expenditures including general corporate purposes.

COIN Stock Price

As more and more companies start to get in on cryptocurrency we will see increase pressure on Coinbase in terms of competition. Once the main authority figure Coinbase now upcoming competition and honestly the barrier to entry for these company's to offer the buying and selling of crypto is very low. This will impact the price of COIN stock as less and less usage comes of the platform and it's instead used elsewhere.

One of the assets COIN does have going for it however will be PoS and I'm curious if they will expand in this area. Proof of stake allows the company to take a small fee for management of these nodes and proof of stake coins earning them a profit. While these fees are much higher than alternatives most people don't know that or care who are currently investing into Coinbase and crypto.

Are you looking to pick up some COIN stock soon? Why or why not, let me know in the comments. *Leaving valuable and insightful comments on my posts might get you a small upvote

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