Coinbase’s value is $1 billion lower than ‘Joke’ token Dogecoin

(Bloomberg) — Coinbase Global Inc., the largest public digital asset exchange in the US, is trailing meme cryptocurrency Dogecoin in terms of market value.

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The exchange now has about $8 billion in market cap, while the value of Dogecoin – originally created as a joke in 2013 – is over $9 billion. The measurement doesn’t necessarily reflect the intrinsic value of those projects, but it can show how a meme coin can outperform the shares of a major US exchange in a highly volatile market.

Coinbase is one of the hardest hit crypto companies as investors snatch coins from exchanges or abandon the asset class as a whole. The exchange has laid off more than 18% of its workforce, or the equivalent of about 1,200 this year. Chief Financial Officer Alesia Haas said the company is preparing for 2023 with a more conservative slant.

“Coinbase is tied to the fate of the broader crypto markets.” said Michael Safai, a partner at crypto trading firm Dexterity Capital. “Dogecoin has no real connection to the macro, instead driven almost primarily by headlines and hype, retail investors seem hungry for one last pop.”

Shares are down about 86% in 2022. Coinbase fell 3.9% on Monday in New York to a record low of $35.17.

Dogecoin saw a substantial uptick since billionaire Elon Musk took over Twitter in October, but has fallen along with the broader crypto market due to the implosion of exchange FTX.

“I don’t think there’s a huge amount of substance to be gleaned from the fact that Dogecoin has surpassed Coinbase in terms of market cap — other than to say that the crypto market is in a lot of flux right now,” said Jacob Sansbury, chief executive officer at online trading platform Pluto. “It’s in such a state of flux that good projects are doing poorly, while the crazy projects are doing relatively well.”

Dogecoin saw an all-time high earlier last year when Musk said Tesla’s customers could buy electric cars with the token. The coin, alongside a variety of other doge-themed cryptocurrencies and meme stocks, was widely traded on trading platforms including Binance and Coinbase.

“Dogecoin was a simple, straightforward joke that went above his pay scale to become a heavyweight champion,” said Teong Hng, CEO of crypto investment firm Satori Research.

(Updates to add Coinbase trading. An earlier version corrected the year of Dogecoin’s historical rise.)

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