Coinbase stock remains undeterred despite Citi's bullish calls

Coinbase stock remains undeterred despite Citi's bullish calls

Coinbase stock [COIN] has largely mimicked the price action of the broader cryptocurrency market of late. But the powerful rally may have stalled.

Shares took a hit, down 1.45% to $320.82 on Tuesday afternoon. This came hours after multinational investment bank Citi set a very bullish price target of $415 on shares of cryptocurrency exchange Coinbase.

After last week's performance, many speculated that COIN would soon reach a “ridiculously high revenue multiple,” similar to Tesla, Amazon and other high-profile players. However, Citi's foray into the picture had little impact on the bullish outlook.

Will Citi’s arrival boost Coinbase’s stock price?

Coinbase had previously sidestepped the more conventional IPO process, which essentially involves intermediaries, also known as underwriters, (like banks) to facilitate the listing. The company led by Brian Armstrong, on the other hand, opted for the direct listing approach or direct public offering (DPO).

Citi analyst Peter Christiansen, specified that Coinbase is like “crypto’s general store” and discussed the importance of the trading platform in offering cryptocurrencies to both private and institutional players.

Citi believes the company has made significant progress in expanding its footprint beyond a traditional crypto exchange and has expanded into other areas such as NFTs and cold wallet storage.

Coinbase’s very own regulatory framework

Christiansen also revealed his optimistic mood with regard to regulation. It is important to note that Coinbase's relationship with US regulators has not been pleasant. It is spit with the Securities and Exchange Commission [SEC] over a digital asset lending product sparked new debates in the crypto community about regulatory clarity.

However, the multinational banking giant's analyst believes increasing regulations could positively impact the exchange's "competitive positioning" as he compares business models that largely depend on unregulated markets.

Nevertheless, Coinbase is now prepares himself to publish a proposal detailing how the federal government should monitor the rapidly evolving market. While Speaking of which Speaking to Fortune, Coinbase President and COO Emilie Choi highlighted the "paranoia surrounding crypto" and explained that the company wants to be treated "on the same level as other financial services institutions." The exec continued to add,

“We want transparency”

.