Goldman Sachs has called Coinbase the best way to invest in the cryptocurrency ecosystem. The bank said that though the company’s long term growth will be determined by the success of cryptocurrencies as an asset class it is a promising company and represents “a blue-chip way through which to invest in the development of the ecosystem”, revealed a note.
Coinbase is the biggest cryptocurrency exchange in the world which recently had its initial public offering on April 14, 2021. The company traded the day it entered the stock market at a 72% high and closed the day at almost 30% higher than its listed price.
Coinbase’s Initial public offering gave cryptocurrency validation and displayed the force of cryptocurrency, The company has been struggling a lot since last week when Bitcoin crashed along with other cryptocurrencies. It is currently trading at $225 far below its IPO of $250. The comment of Goldman Sachs could pull up its falling stock.
Goldman Sachs also has recently added Bitcoin to its class of assets and said Bitcoin is the new digital gold and has more potential to hedge inflation than actual gold. Goldman went on further, “While we believe the core business today offers an attractive growth profile with the potential to drive high levels of profitability, we see significant white space for new initiatives to drive more stable and recurring revenue streams to complement the core trading business over the longer-term”.
These comments by Goldman Sachs expressing confidence in the performance of Coinbase can have a positive effect on its stocks which have been performing poorly since few days after its listing at the NASDAQ.