After a disastrous Super Bowl advertising campaign, Coinbase (US cryptocurrency exchange) saw its shares drop 5% pre-trading.
Cointelegraph Markets Pro and TradingView data showed that COIN was preparing to open at $194.53, just before Monday’s Wall Street opening.
Snowden: Coinbase crashes “so very Internet”
Crypto investors will remember the Super Bowl 2022, where many of the biggest names in the industry aired full-scale ads.
Coinbase was not so lucky. The platform’s app and website crashed after Coinbase promised a $15 prize.
@coinbase saw more traffic than ever before, but our teams worked together and were able to only throttle traffic for a few seconds. We are now back and ready for you at https://t.co/ZUJqRlnZPH. We are humbled to have witnessed this. #WAGMI
— Surojit (@surojit), February 14, 2022
Although the problem lasted less than an hour, Coinbase was not spared from widespread social media jibes. Some of these became viral.
Amusement was also generated by the ad’s high price: it cost more than $15 million for a single-minute spot.
Edward Snowden tweeted, “Coinbase spends $16,000,000 to direct people to its website and $0 for website to crash within 10 seconds.”
This is not a rare mishap for the U.S.-based giant. It has been headlined many times for system outages at critical times for Bitcoin price action, such as periods when there is sudden volatility, when trading opportunities can be most lucrative.
The ad’s approach was praised by many, as well as those of Crypto.com and FTX.
Chart of 1-day candle for COIN/USD Source: TradingView
BTC price action adds to the gloom
Coinbase’s stock slump comes at a similar time for Bitcoin traders. The two assets are clearly linked.
Related: Two key indicators cast doubt upon the strength of the current cryptocurrency market recovery
BTC/USD fell just below 1% in 24 hour at Monday’s writing. This was part of a trend that has been ongoing for several days and could lead to a retest support of $40,000
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Coinbase announced last Wednesday that it had partnered with One River Digital Assessment Management in order to offer a new platform specifically for institutions.
This sector of crypto investors is expected to make a big comeback in 2019, following the rise in retail presence in 2021.