Coinbase (COIN) Stock Holds Steady Amid Regulatory Scrutiny

Coinbase Global, Inc. (NASDAQ:COIN) is yet again in the spotlight amid heightened regulatory scrutiny.  On May 19, the US Department of Justice lodged an investigation into a significant security breach that resulted in the loss of customer accounts and internal accounts. The crypto exchange could have lost customer names, addresses, and emails following the breach. However, the actors did not gain access to login credentials and passwords.

The world's largest cryptocurrency exchange has already warned that it will incur a hit of between $180 million and $400 million following the breach. Nevertheless, Coinbase has reiterated that it is not being investigated as the DOJ is investigating criminal actors behind the breach.

In addition, Coinbase remains under scrutiny by the US Securities and Exchange Commission over claims it misstated customer data in its disclosure. The SEC is investigating whether the company has over 100 million verified users as claimed, even as it claims it stopped reporting the numbers two years ago.

Amid the significant regulatory scrutiny, Coinbase stock continues to edge higher, having hit its highest level since February and 88% above its lowest level this year. The impressive run stems from the overall cryptocurrency sector turning bullish, with Bitcoin powering through the $100,000 a coin level. Ark Invest predicts that Bitcoin will rise to over $2.4 million by 2030 as BlackRock insists on a $700,000 price tag per Bitcoin is one of the factors fueling momentum in the crypto sector.

While we acknowledge the potential of Coinbase Global, Inc. (NASDAQ:COIN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COIN and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.