In light of the state of the crypto industry, bonds issued by Coinbase that are due by 2031 have plummeted to about 15% this month. The reason has been pegged to the drastic loss of confidence in the crypto industry by investors.
Drastic Loss Of Crypto Confidence Plummets Bonds’ Price
The price of Coinbase bonds has fallen drastically in recent times. The bonds that were issued by the crypto exchange Coinbase have continued to seriously plummet.
According to Finra-Morningstar, the price of the bond has declined by about 15% just this month alone, leaving the price at about 50 U.S. cents, and the yield has gone up to about 13.5% generally. This pretty big fall in price is no doubt linked to the recent happenings in the crypto industry.
It is safe to say that since the folding up of the FTX exchange and with a number of other crypto firms following suit, crypto investors have begun to lose faith—perhaps not in crypto itself but in the people in charge of things.
Also read:The news of Coinbase bonds’ decline was particularly unexpected, as the numbers had been really good and things seemed to have been going pretty well.
However, it seems apparent that the effects of the FTX exchange’s collapse are undoubtedly big ones.
MicroStrategy Follows Suit
In addition to Coinbase’s news, the bonds issued by the business-intelligence firm, which also doubles as an investor in Bitcoin MicroStrategy (MSTR), have also gone crashing.
Normally, high-yield bonds, as their name implies, have the tendency to yield higher rates of profit, but definitely not without their fair share of high risk. Experts have gone on to criticise the concept of bond yields themselves as obtainable in many crypto exchanges.
Like it has been earlier predicted by economic experts such as Nouriel Roubini, the fall of FTX will have a great impact on the crypto economy, and the decline in the price of bonds issued by crypto exchanges seems like just the beginning.
While the likes of crypto exchanges such as Coinbase might not have necessarily shared in the misfortune of FTX, a couple of the resultant effects of the collapse will however be felt by them too.
As it is now, investors are really calculative about the set of risks they are willing to accept.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.