Twitter Inc TWTR founder and CEO of Block Inc SQ Jack Dorsey equated rival Coinbase Gobal, Inc COIN with a casino on Wednesday.
Dorsey was responding to a tweet by River Financial CEO Alexander Leishman. The latter said that Coinbase was becoming a “prime acquisition target.”
nah it’s a casino
— jack (@jack) May 12, 2022
Coinbase stock fell sharply by 26.4% to $52.72 on Wednesday and slipped another 2.55% in the after-hours trading to $52.35. Leishman’s comments on the company being a takeover target seemed to have been made in this context.
See Also: How To Buy Coinbase (COIN) Shares
On Tuesday, Coinbase reported first-quarter revenue of $1.17 billion, which was lower than the $1.48 billion estimated by the Street.
“CryptoWhale,” a Bitcoin BTC/USD contrarian, asked Dorsey, who is bullish on the apex crypto, his thoughts on a recent Coinbase filing with the U.S. Securities and Exchange Commission. Cryptowhale highlighted a paragraph that said in the event of a bankruptcy crypto assets held custodially by Coinbase would be “considered to be the property of a bankruptcy estate.” Coinbase’s CEO Brian Armstrong said on Wednesday that the cryptocurrency trading platform did not face a bankruptcy risk.
Armstrong tweeted Wednesday, “Markets are irrational in the short term but not over the long term. They sometimes offer fire sale prices on the greatest companies in the world.”
“Markets are irrational in the short term but not over the long term. They sometimes offer fire sale prices on the greatest companies in the world.” – @fredwilson
— Brian Armstrong – barmstrong.eth (@brian_armstrong) May 11, 2022
The Coinbase CEO seemed to allude to the company’s shares being undervalued. Coinbase stock has slipped nearly 80% since the year began.