Cowen downgrades Coinbase as crypto companies face elevated scrutiny after FTX implosion

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It's time to take a pause on shares of Coinbase as the company faces potential scrutiny in the wake of FTX's blowup, Cowen said.

It's time to take a pause on shares of Coinbase as the company faces potential scrutiny in the wake of FTX's blowup and retail trading volumes decline, Cowen said. Analyst Stephen Glagola downgraded shares of the crypto exchange operator to market perform from outperform, citing a difficult macro backdrop and FTX-fueled crypto concerns unlikely to subside near term.

" Coinbase shares plummeted 86% in 2022, slumping 34% alone since FTX filed for bankruptcy in November . That's in part due to the stock's heavy correlation to crypto asset prices, which have declined significantly. A consistent drop-off in trading volumes that began over a year ago is another factor weighing on shares, with Glagola expecting another round of layoffs this year to help cut costs.

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