Coinbase (NASDAQ:COIN) shares are trending lower today after the cryptocurrency exchange stopped accepting or initiating payments with Silvergate Capital (NYSE:SI).
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The move comes as concerns persist over SI’s financials and the crypto bank has already extended the deadline for its annual filing.
Earlier, Coinbase also put a stopper in the trading of the stablecoin Binance USD (BUSD-USD) as worries over its liquidity remain. Last month, mining of the stablecoin at Paxos was halted by the New York Department of Financial Services.
Overall, Wall Street has a consensus price target of $58.89 on COIN, implying an 8.9% potential downside in the stock. That’s on top of a 67% slide in the share price over the past year. Silvergate too, has seen its share price slide by nearly 89% over the past year while short interest in the stock still remains sky-high at about 70.6% at present.
Challenges in the crypto space continue to abound as investor interest wanes and sagging prices continue to lead to liquidity issues at multiple names. Bitcoin (BTC-USD) and Ethereum (ETH-USD), the two major cryptocurrencies, have nosedived 47% and 45% respectively over the past year.
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