The Black Swan writer recently described Coinbase as “cash-flow negative,” suggesting little faith in the exchange.
“Black Swan” author Nassim Taleb recently expressed pessimism at the prospect of popular American crypto exchange Coinbase (NASDAQ: COIN). Describing Coinbase as “worthless” in a Tweet posted yesterday, Taleb said:
“…[Coinbase] is cash-flow negative, with a grisly future (even if crypto comes back) & owners have been getting out. The company is worthless.”
Бирок, бир акыркы деми, the “Black Swan” author stated that his prognosis is restricted to the exchange’s operability. Taleb explained that headlines were misquoting his COIN statement, saying:
“I said nothing about their holdings & risks of blowup, no analogy to FTC.”
However, despite his bearishness on Coinbase, Taleb does not foresee the American crypto exchange imploding the same way FTX кылды.
Taleb also stated that the crypto industry relies on speculation owing to its inability to generate cash flow.
“Black Swan” Author Coinbase Assessment Comes on Heels of Recent COIN Setback
Previous reports stated that Coinbase stock sank to a record low a week ago following waning investor faith from FTX’s collapse. Last Monday, COIN was trading at $40.61 after suffering a staggering 90% drawdown from its record high of $429 achieved in April 2021 when it first went public. In addition, amid the ongoing tailspin in the crypto space, Американын банкы (NYSE: BAC) downgraded COIN to neutral earlier this month. At the time, the US banking powerhouse explained that Coinbase was facing a number of headwinds. However, just like Taleb, Bank of America also stressed that the Брайан Армстронг-led company would not suffer the same fate as FTX.
Armstrong has since moved to calm investors’ nerves and recently айтып the Financial Times that he remains bullish on crypto. Explaining why digital currencies are here for the long haul, the Coinbase head said that “the trend of history is towards, you know, more digitization, more electronic payments; our wallet is becoming our phone.”
However, Armstrong also admitted that there is a need for more regulatory clarity within the crypto space for sustenance.
Observers Question Crypto Validity amid Contagion Fears
As several tech players continue to advocate for crypto’s sustenance, an equal number of analysts, like Taleb, also deem it a waste of time. Dan Dolev, senior analyst at Mizuho Americas, also shared similar sentiments to the “Black Swan” author’s COIN assessment earlier this week. In a research note, Dolev claims that Coinbase would not benefit from FTX’s dramatic crash, which occurred earlier this month.
Prolific investor Warren Buffett is also skeptical of digital currencies. In May, the “Oracle of Omaha” slammed lead crypto Bitcoin (BTC) as worthless. Buffett also expressed apathy for the BTC hype and referred to the token as “magic”. In addition, Buffett stated that regardless of crypto’s rise or decline, “one thing I’m pretty sure of is that it doesn’t produce anything.”
Buffett’s scathing assessment of Bitcoin incurred backlash from the crypto community, especially the Bitcoin maximalists. They argued that the popular digital currency is worth far more than the Б.Гейтс CEO imagined.
Толу Локостогу cryptocurrency жана blockchain ышкыбозу. Ал крипто окуяларын жылаңач негиздер менен бөлүшкүсү келгенди жакшы көрөт, ошондуктан каалаган адам өтө көп маалыматсыз түшүнүп алат.
Крипто-аңгемелерге терең кирбегенде, Толу музыкадан ырахат алат, ырдаганды жакшы көрөт жана киного жакын.
Source: https://www.coinspeaker.com/black-swan-author-coinbase-coin/