Following the rejection of a class-action lawsuit brought against Coinbase Global Inc on Thursday, the stock price of the publicly-traded crypto currency exchange Coinbase Global Inc skyrocketed by an astounding 46%! The stock cost was $85.40 a share at time of writing.
Coinbase was accused of marketing 79 different digital assets as unlicensed securities in the complaint submitted to the federal court in New York in October of 2021. Also mentioned is that this transaction consisted of unlawful contracts because the platform in question did not register with the United States SEC.
Clients who had filed this complaint against Coinbase wanted reimbursements for transaction fees, token sales, and other damages that were suffered by the platform.
The case was filed against Coinbase in August 2018. The lawsuit said that Coinbase encouraged the sale of the tokens by taking part in promotions and providing news updates on the swings in the price of crypto currencies, and Coinbase did this.
However, in a decision handed down earlier this week, United States District Judge Paul A. Engelmayer stated that the user agreement for Coinbase "flatly contradicts" the charges made in the case that the business maintains the ownership of the digital assets that are exchanged on the exchange.
Engelmayer, in response to allegations that the company engaged in promotional activities, stated that such endeavors "are in keeping with the marketing efforts,' materials,' and services."
As a result, they won't be considered an active solicitation of investments by potential parties. This information was sufficient to drive a significant 25% increase in the price of COIN shares in only a single session.
Crypto Stocks on the Move
The stocks of crypto currency companies have been steadily increasing since the beginning of 2023, and a general improvement has helped this surge in the performance of growth stocks. As of the time of writing this article, the price of a share of COIN has increased by a remarkable 163% since the beginning of the year.
Over 75% of the COIN stock's value was added during January 2023's final day. Nevertheless, despite this recent improvement, Coinbase shares are still exchanging hands at a discount of 76% from their all-time high.
UK Bank Barclays mentioned on Thursday that the volume for the Coinbase stock increased by 56% in the previous month and that "volumes are now close amounts shown in October before the breakdown of FTX, but continue to stay below the average for 2022."
Aside from Coinbase, the vast majority of equities connected to crypto currencies have also increased in value over the recent rebound, coinciding with a larger stock market revival.
MicroStrategy, a business intelligence provider, and Silvergate Capital, a crypto currency bank, had their share prices surge by an astounding 10% and 30%, respectively, on Thursday.
Similarly, the value of the stocks of several crypto currency mining firms rose over the final month of January. Bitcoin benefits from Wall Street's risk-on attitude, but it may need help breaking the significant barrier from the $25,000 mark.