Investors Who Put Their Pennies in Coinbase Could Get Pinched

Investors Who Put Their Pennies in Coinbase Could Get Pinched

This column is part of the Heard on the Street stock-picking contest. You’re invited to play along with us here.

Coinbase Global’s stock valuation is predicated on a view that cryptocurrencies will only gain in popularity and acceptance in the years ahead. Regulators could have a thing or two to say about that in the coming months.

In its April stock market debut, Coinbase, which runs the largest U.S. exchange for bitcoin and other private digital currencies, made a very big splash. It closed its first day of trading at $328.28 a share, putting its market capitalization at $85 billion—more than 10 times what it was valued at in its previous fundraising round.