The Crypto Winter is here and your investments will be shaky, ask Coinbase or ask Kevin Durant, who might be down over 80%!
Well, there is pandemonium in the markets and it looks like every big investor is down, huge. In the cryptocurrency market, drawdowns can be brutal.
There are no safeguards in place and hence coins can lose value by over 90%! So, as Bitcoin continues to crash, it will take down most of the market with it. This drag will also include cryptocurrency exchanges.
Coinbase is among the world’s largest exchanges and today they announced a layoff of nearly 18% of their entire staff. 1100, employees were sent home.
The company is currently trading at $52. Its market value is at $13 billion and it can go lower. It is down nearly 85% from its all-time high.
If you didn’t know, Kevin Durant is one of the biggest investors in Coinbase. His company, Thirty-Five Ventures was part of the series D funding round for Coinbase.
— Brandon (@blongshanks77) June 14, 2022
Kevin Durant brought Coinbase shares at 1.6 billion and now his big returns are flatlining!
At one point, Kevin Durant’s return on investment was as high as 5300%. Now it is most likely down to less than 10 times. While that is still a solid figure, the net losses are huge.
KD invested when the company was gathering up a $100 million at a $1.6 billion valuation. As it languishes in the low ten billion mark, who’s to say it cannot go any lower.
The Nets superstar should look to get out soon or hold his share until it reaches a bottom. We reckon he won’t be too happy with the latter option.
We won’t claim to know a lot about the world of investment but we doubt anyone would be happy about losing a 53x return on their investment.