Coinbase Unveils $25M For Political Donations As Stocks Suffer Worst Day In Over Two Years

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As an experienced crypto investor who has witnessed the rollercoaster ride that is the digital asset market, I must admit I find myself both cautiously optimistic and slightly apprehensive about recent developments. The strategic move by Coinbase to commit $25 million to Fairshake is a clear sign of the industry’s growing influence in politics, which could potentially pave the way for pro-crypto legislation. However, it’s important not to forget that politics can be as unpredictable as crypto prices!

To bolster its political clout, the American cryptocurrency trading platform Coinbase has pledged an extra $25 million towards Fairshake, a political group, with the intention of backing pro-cryptocurrency contenders for the upcoming 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, supported by significant industry figures like Ripple Labs and Andreessen Horowitz, strives to make it clear to both Republican and Democratic political figures that understanding and valuing cryptocurrencies is essential within their campaign agendas.

The committee plans to allocate more than $40 million in the run-up to the 2024 elections, with a total of $140 million previously spent on different congressional campaigns throughout the country.

In the present political atmosphere, the Republican candidate Donald Trump has adapted his views on cryptocurrency, now advocating for the industry instead of earlier dismissing it as a fraud. His pledges encompass dismissing the chair of the Securities and Exchange Commission (SEC), Gary Gensler, and suggesting Bitcoin as a national strategic reserve asset.

Instead of this: Conversely, Democratic Vice President Kamala Harris has pledged to support a regulatory framework for digital assets if elected.

The CEO of Coinbase highlighted the increasing power of “cryptocurrency voters,” implying that their influence will undeniably broaden even more in the future.

In spite of ongoing political changes, Coinbase’s shares have been under considerable strain after their latest financial report failed to meet anticipated targets.

Analysts Call Current Crypto Market Dip A ‘Temporary Unwind’

On Thursdays session, Coinbase’s shares experienced a significant drop of 14.3%, representing their largest decrease since May last year. This fall was intensified by a general market downturn and underwhelming financial reports from other crypto-linked companies, such as Robinhood. The latter’s stock plummeted by 15% following the release of subpar performance figures.

Nevertheless, experts see the present market fluctuations as a short-term hiccup. Devin Ryan from JMP Securities referred to this situation in crypto stocks as a “temporary correction,” implying that long-term investors might discover potential opportunities within the market turbulence.

Additionally, the analyst noted that potential future occurrences like the U.S. elections and surging cryptocurrency values might boost Coinbase’s fourth-quarter earnings, assuming these trends persist.

According to analyst Owen Lau from Oppenheimer, the recent drop in Coinbase’s stock price could be linked to worries over reduced trading volumes and the possible influence of lower U.S. interest rates on the company’s income derived from its stablecoin offerings.

Currently, COIN stocks are being exchanged for approximately $179, having reached a peak of $223 three months ago on Tuesday.

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2024-11-01 06:04