Top Coinbase Executives Dump Stocks Worth $1.2 Billion Since its Listing


Reports have emerged that top Coinbase officials have sold $1.2 billion worth of their shares.

Per the report, the executives include the firm’s two co-founders Brian Armstrong and Fred Ehrsam and the other two executives are Emilie Choi, the company’s President and Chief Operating Officer, and Surojit Chatterjee, the Chief Product Officer.

It was revealed that the cofounders sold over $500 million worth of their shares combined while Choi and Chatterjee sold around $450 million worth of the shares.

It continued that Fred Ehrsam bought back shares worth $75 million using Paradigm One LP, a crypto investment firm he co-founded.

WSJ reported that experts in the industry opined that the sales are not surprising given that these individuals have had their stakes locked up for so long.

A Coinbase spokesperson who reacted to the development shared similar sentiments.

“These Coinbase executives maintain large positions in the company, reflecting their commitment to our long-term opportunities.”

Coinbase Stock Down by 80% Since Listing

Coinbase stock has shed over 80% of its value since its listing. Coinbase in its first earnings call for the year had revealed that its revenue was declining alongside the number of its users.

This has prompted the firm to step up its activities in other crypto niches like entering into the NFT scene with its own marketplace, though it is yet to record huge success.

Apart from that, the firm has also been trying to expand into new jurisdictions.

However, a recent note to investors from Cowen equity analyst Stephen Glagola said that the security infrastructure and regulatory compliance nature of the exchange put it at an advantage over its rivals.

Interestingly, Fortune 500 recently listed the company among the largest 500 companies in the United States. This makes Coinbase the first crypto firm to get into the exalted list.

Per Fortune 500’s Editor-in-Chief, Alyson Shontell, Coinbase was one of the firms that leveraged the impact of the coronavirus to gain wide acceptance and growth.