Coinbase is down 22% from the high reached on August 11, 2021, after a blowout Q2 2021 earnings report.The company is heavily dependent on retail cryptocurrency trading which comprises 82% of its total revenue.The downtrend in broad cryptocurrency prices since the peak on the day of the Coinbase IPO is likely to place significant downward pressure on cryptocurrency trading volumes.The regulatory environment has reached a tipping point and is trending toward a significant realignment of the cryptocurrency industry along financial industry norms.Coinbase should be placed high on the watchlist of all growth investors given its attractive relative valuation and vast unquantifiable upside opportunity.
