February 6, 2023

Banking giant Citi is reportedly saying that the upcoming Ethereum (ETH) Proof of Stake transition expected next month could be bullish for Coinbase, the largest US crypto exchange.

According to customers’ remark I have seen Looking for Alpha, Citi analyst Peter Christiansen closed his radar on Coinbase stock for 90 days in a bullish catalyst hour.

According to Christiansen, there are “good developments brewing” for Coinbase in the Ethereum consolidation, as well as potential regulatory clarity over the stablecoin.

The first “could represent hundreds of millions of annual Coinbase (COIN) blockchain reward revenue” and spur development of Web 3.0, the analyst says.

At the time of writing, the coin is down 74% from its all-time high, but has doubled since late June and is now trading at $93.

Citi’s bullish stance on Coinbase comes as the exchange faces a fresh lawsuit from investors who felt misled into buying the coin.

According to the court deposit Filed by Bragar Eagel & Squire, PC, a law firm that specializes in securities litigation, Coinbase failed to adequately disclose the exchange’s policy on what happens to clients’ crypto assets in the event of bankruptcy.

Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, the defendants made false and/or misleading statements and/or failed to disclose the following: (1) Coinbase held crypto assets on behalf of its customers, which could be assets that Coinbase knew about or were recklessly ignored act as ownership of a bankruptcy property, making those assets likely to be subject to bankruptcy proceedings in which Coinbase customers will be treated as the company’s generally unsecured creditors;

(2) Coinbase allowed Americans to trade digital assets that Coinbase was aware of or recklessly ignored that should have been registered as securities with the Securities and Exchange Commission; (iii) past conduct has exposed the company to increased risks of regulatory and governmental oversight and enforcement action; and (iv) as a consequence, the Company’s public statements have been materially false and misleading at all relevant times.”

The lawsuit is filed on behalf of all persons and entities that purchased or acquired Coinbase securities between April 14, 2021 and July 26, 2022.

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