Shark Tank investor Kevin O’Leary says he’s optimistic about Coinbase’s long-term potential despite the considerable drop in the company’s stock price.
In an interview with CNBC’s Halftime Report, O’Leary notes that while pressure from regulators stifled Coinbase’s plans to offer yields on the USD Coin (USDC) stablecoin in the US, the crypto exchange’s Lend product remains viable overseas.
“The play on Coinbase is crypto infrastructure. They’re going to go to other jurisdictions where they’re allowed to allow staking because they’re a global platform.
They’re getting very savvy at it. They’re going to different geographies and putting out the Lend product there.”
In September, Coinbase scrapped its lend program, which would have generated 4% annual percentage yield (APY) on the company’s dollar-pegged stablecoin USD Coin (USDC)
The businessman notes that in light of the recent Congressional hearings discussing cryptocurrencies, he believes regulators will eventually permit Lend-type products in the US.
“I like the direction of this, and so for me, I’m looking for infrastructure, and Coinbase is one of those global platforms [with] millions of accounts.
And as soon as these products get turned on, [customers] have to prove [their] geography. You have to have an IP address that’s allowed in.”
The Coinbase stock trades on the Nasdaq under the ticker symbol COIN. At time of writing, it’s valued at $251.37, down over 46% from the November high of $368.90.
O’Leary concludes the discussion of his investing strategy by saying,
“If you’re into crypto… it’s a binary decision, either you like it or you don’t.
I’m in the ‘like it’ camp, and so I’m looking for ways to diversify my portfolio.
Coinbase is one way to do that.”
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