Coinbase Unveils $25M For Political Donations As Stocks Suffer Worst Day In Over Two Years
01 Novembre 2024 - 4:00AM
NEWSBTC
In a strategic move to increase its influence in the political
landscape, US-based cryptocurrency exchange Coinbase has committed
an additional $25 million to Fairshake, a political action
committee (PAC), as it prepares to support pro-crypto candidates
ahead of the 2026 midterm elections. Coinbase CEO Armstrong Commits
$25M To Fairshake Coinbase CEO Brian Armstrong confirmed the
investment during the company’s third-quarter earnings call,
stating, “We’re not going to slow down post-election. We know we
need to have pro-crypto legislation passed in this country.”
Fairshake, which has garnered backing from major players in the
digital asset sector, including Ripple Labs and Andreessen
Horowitz, aims to ensure that both Republican and Democratic
candidates recognize the importance of cryptocurrency in their
platforms. The committee is poised to spend over $40 million
in the lead-up to the 2024 elections, having already invested $140
million in various congressional races across the nation. Related
Reading: Analyst Claims Ethereum ‘Is Not Dying,’ Bitcoin Surge No
Threat To Ether In the current political climate, Republican
nominee Donald Trump has shifted his stance on cryptocurrency, now
embracing the industry after previously labeling it as a scam, with
promises including firing the Securities and Exchange Commission
(SEC) chair Gary Gensler and Bitcoin as a strategic reserve asset
for the nation. Conversely, Democratic Vice President Kamala
Harris has pledged to support a regulatory framework for digital
assets if elected. Armstrong noted, “We get the US election results
in six days, and no matter how you slice it, it will be the most
pro-crypto Congress ever.” Coinbase’s CEO emphasized the
growing influence of the “crypto voter,” suggesting that their
impact will only continue to expand. Despite these political
developments, Coinbase’s stock faced significant pressure following
the company’s recent earnings report, which fell short of
expectations. Analysts Call Current Crypto Market Dip A
‘Temporary Unwind’ Coinbase shares dropped 14.3% on Thursday,
marking the steepest decline since May 2022. This downturn was
exacerbated by a broader market decline and disappointing earnings
from other crypto-related firms, including Robinhood, which saw its
stock tumble 15% after reporting weak results. However, analysts
are viewing the current market conditions as a temporary setback.
Devin Ryan of JMP Securities described the situation as a
“temporary unwind” in crypto stocks, suggesting that long-term
investors may find opportunities amidst the volatility. The
analyst further pointed out that upcoming events—such as the US
elections and rising crypto prices—could positively impact
Coinbase’s fourth-quarter revenue if trends continue. Related
Reading: Institutional Traders Bet On Bitcoin Exceeding $79,300 By
End Of November Owen Lau, an analyst at Oppenheimer, also noted
that the recent stock decline might be tied to concerns about
subdued trading volumes and the potential impact of lower US
interest rates on Coinbase’s stablecoin revenue. At the time
of writing, COIN shares were trading at $179 after hitting a
three-month high of $223 last Tuesday. Featured image from DALL-E,
chart from TradingView.com
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