Jim Cramer stated regarding Coinbase stock, “I wouldn’t touch it at all”

Coinbase Global Inc (NASDAQ: COIN) has lost nearly 30% over the past few weeks, but renowned investor Jim Cramer does not consider this a buying opportunity.

The anchor of Mad Money is disappointed that the crypto exchange did not benefit from the recent bank failures in terms of capital inflows.

The Securities and Exchange Commission issued a Wells notice to the cryptocurrency company last month for violating U.S. securities laws.

Also on Thursday, a Bank of America analyst cited data from CoinGecko and stated that Coinbase’s first-quarter transaction volumes remained essentially unchanged, missing expectations by a staggering $24 billion.

Since the beginning of the year, crypto prices have been trending upward since this time. This is noteworthy because transaction volume accounts for a substantial portion of its total revenue.

Jason Kupferberg, maintaining his “underperform” rating on Coinbase stock, cited a 6.0% decline in app downloads as another reason for his rating. The number of app downloads in the first quarter was the lowest since the third quarter of 2020. The analyst continued:

While we do not foresee a significant risk to Coin’s 1Q interest income, USDC’s market cap decline of 24% since the beginning of the bank crisis could add risk to interest income estimates for the following few quarters.

Read Also: Bitcoin outperforms the five largest indexes by 170% in Q1 2023

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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