Last week, Coinbase Global (COIN) blocked around 25,000 addresses connected to Russian individuals or entities. The firm has policies that align with sanctions against the country. To promote national security and deter unlawful aggression, the company sanctioned thousands of accounts.
Coinbase’s blocking may harm its brand. The company is blocking Russian accounts now. In the future, it has the flexibility in blocking other accounts for different reasons. Customers may lose their trust in the platform. They may use the site to complete a crypto exchange and then withdraw the funds upon completion.
In the last week, Coinbase stock peaked at around $180 and closed at $160. Competitor Voyager Digital (VOYG) also fared poorly. Investors are cautious about investing in platforms amid an increase in blocking accounts.
Investors need to monitor the ongoing conflict between Russia and Ukraine. The sanctions against Russia set a precedent for cryptocurrency platforms. U.S. consumer goods firms are also boycotting the country. The increasing tension among nations will hurt crypto stocks. As pressure on stocks mounts, Bitcoin prices may fall. This might send Coinbase stock to new 52-week lows.
Add COIN stock to the watch list. The company runs the best-known crypto platform and will not go away any time soon.
