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Coinbase Bonds’ Price Plummet As Crypto Winter Advances

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. 

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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.

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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.

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As it is now, investors are really calculative about the set of risks they are willing to accept. 


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Jimmy Kelly

Jimmy is one of the news journalists for Tokenhell. He is a big crypto enthusiast and bought his first crypto token way back in 2015! Jimmy publishes updates about crypto tokens, events, price analysis and regulation among many other subjects.

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