Banking giant Citigroup reportedly said it expects ethereum (ETH) to transition to proof-of-stake next month, which could be positive for shares of Coinbase, the largest U.S. cryptocurrency exchange.
According to the instructions to the customer seen Via Seeking Alpha, Citi analyst Peter Christiansen has locked his radar on Coinbase stock for 90 days, on upside catalyst watch.
According to Christiansen, amid the ethereum merger, Coinbase is brewing “good developments,” as well as clarity on possible regulation of stablecoins.
The analyst said the former “could represent hundreds of millions of annual blockchain rewards revenue for Coinbase (COIN)” and spur Web 3.0 growth.
At the time of writing, COIN is down 74% from its all-time high, but has doubled in price from the end of June and is currently trading at $93.
Citi’s bullishness on Coinbase comes as the exchange is facing new lawsuits from investors who believe they were misled into buying COIN.
According to the court archive Produced by Bragar Eagel & Squire, PC, a law firm specializing in securities litigation, Coinbase has failed to adequately disclose the exchange’s policies regarding what happens to customers’ crypto assets in the event of a bankruptcy.
“Defendants made material false and misleading statements about the company’s business, operations and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that these assets may be subject to bankruptcy proceedings impact, in which Coinbase’s customers will be considered general unsecured creditors of the company;
(ii) Coinbase allows Americans to trade digital assets that Coinbase knew or recklessly disregarded that should have been registered as securities with the SEC; (iii) the above actions expose the Company to an increased risk of regulatory and government scrutiny and enforcement actions; (iv) therefore, the Company ‘s public statements were materially false and misleading at all relevant times. “
The lawsuit was filed on behalf of all individuals and entities who purchased or otherwise acquired Coinbase securities between April 14, 2021 and July 26, 2022.
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