A type of cryptography known as multi-party computation (MPC) enables multiple parties to evaluate a computation without disclosing any of their own secret data. Unbound Security is a pioneer in this area, according to Coinbase.
According to a blog post published on Tuesday, Coinbase will also have a presence in Unbound's home country of Israel as a result of the acquisition.
Finances for the transaction were not disclosed at the time of the announcement. After CoinDesk inquired about Coinbase's response, the company did not immediately answer.
Crypto assets may now be stored, transferred, and deployed with greater security, ease, and flexibility than ever before thanks to a mathematical advancement called "safe multi-party computing," according to a blog post on the Coinbase platform.
INVESTMENT IN COINBASE
A direct listing of the crypto behemoth on the Nasdaq was launched on April 14, at a price of $250 per share. First-day trading saw Coinbase stock soar nearly 72 percent to 429.54 before closing at 328.28, up 31.3 percent, for a valuation of $87.3 billion, according to CoinMarketCap data.
The IPO of Coinbase is expected to boost confidence in the bitcoin market.
In a letter to clients, Wedbush analyst Dan Ives wrote: "The Coinbase IPO is possibly a watershed event for the crypto market and will be something the Street will be laser-focused on." Bitcoin and other cryptocurrencies' acceptance by the general public will be measured by Coinbase over the next several years.
Is there a way for Coinbase to generate revenue?
To date, Coinbase has been the most popular bitcoin exchange in the United States. About 50 cryptocurrencies are available for trade, with Bitcoin and Ethereum at the top of the list, respectively. The value of Bitcoin has increased by more than75% this year, making it the most valuable digital currency in the world. According to Coindesk, the value of Ethereum has increased by approximately 500 percent in the year 2021.
In order to make money, Coinbase charges fees of multiple percentage points to deposit funds and trade. By 2020, trading and other services like storage will account for nearly all of the company's revenue.
The Fundamentals of Coinbase's Share Price: Record-High Revenues and Earnings
While the price of cryptocurrencies and trading activity have both increased over the past three months, the cryptocurrency exchange's third-quarter earnings fell short of expectations on Nov. 9. Coinbase made $1.62 a share, or $1.62 per coin. That was much below FactSet's $1.82 prediction. The corporation made $1.235 billion in revenue. That's an omission worth $1.614 billion in revenue.
Revenue grew by 316 percent year-over-year, while earnings jumped 295 percent.
From 7.6 million to 7.4 million monthly transactional customers, the number of monthly users decreased. During that time, trading volume decreased as well.
Technical Analysis of the COIN Stock
COIN stock has fallen roughly 40% since its IPO. Following an Oct. 15 breakout, shares gave up their whole huge gain at the 280.71 buy mark, triggering the critical round-trip sell rule, in early December. Shares of COIN have fallen significantly from their 50-day moving average.
According to the IBD Stock Checkup, the IBD Composite Rating for Coinbase is increasing, rising from an initial score of 81 to a current score of 81. It's easy for investors to see how a stock's fundamental and technical measurements stack up.
Coinbase Stock Price
In a research note published on April 22, Mizuho analyst Dan Dolev began following the stock, giving it a neutral rating and setting a price objective of $285. "Coinbase's price may come under less pressure in the future if payment services such as PayPal and Cash App become more prevalent." Dolev said. PayPal and Cash App mostly use their crypto trading goods as engagement tools, whereas Coinbase focuses on its crypto trading products as its major source of revenue and profitability. '
A buy rating and a price target of $306 were first introduced by Goldman Sachs on May 24. For investors who want to get a taste of the cryptocurrency market, Goldman Sachs analyst Will Nance recommends Coinbase.
A 371 price target and an overweight rating were issued by JPMorgan on May 25. As a result, the price of Coinbase rose by 7.6 percent.
A buy rating and a price target of $285 were given to the stock by Canaccord Genuity on June 16th.
- Coinbase announced on Sept. 7 that it had received a notification from the Securities and Exchange Commission (SEC) last week. Over the company's Coinbase Lend program, regulators said they want to file a lawsuit against the company.
- On September 24, China's central bank said that all transactions involving cryptocurrencies were illegitimate. The People's Bank of China stated on its website that financial institutions and non-bank payment institutions are prohibited from providing services linked to virtual currency activities and operations.
- Coinbase NFT, a peer-to-peer marketplace that allows users to mint, collect, and exchange NFTs, or non-fungible tokens, was launched on Oct. 12 by the business.
- Coinbase revealed in a news release on October 19 that Facebook had picked Coinbase as its custodian for the testing of Novi, a new digital wallet that allows consumers to send and receive money internationally quickly, securely, and without incurring any fees.
Is it a good time to invest in Coinbase stock right now?
The price of Coinbase fell by nearly 6% on Tuesday. According to Coindesk, the price of Bitcoin fell to $47,400 on Tuesday, a loss of more than 8% in the last 24 hours. On Nov. 10, Bitcoin reached a new all-time high of $68,990.
After recent losses, the stock is no longer a good investment. Before making a purchase, watch for a new base to form in the stock.
These IBD stock lists, such as the Stocks Nearing Buy Zones, have additional leading stocks and those nearing buy points. Check out The Big Picture, IBD's daily hallmark analysis, to see how the stock market is currently trending.