Coinbase Co-Founder Fred Ehrsam Led Insider Sell-off with $91M Worth of COIN Shares
Amid crashing crypto prices after the bull run in October and November 2021, US SEC data reveals that Coinbase executives have been on a selling spree over the past three months. Overall, the insiders dumped more than $90 million worth of COIN.
COIN Sell-off By Executives
According to a recent filing with the SEC, Coinbase co-founder Fred Ehrsam and Chief Product Officer Surojit Chatterjee together sold COIN stocks worth over $40 million in December 2021.
Ehrsam and Chatterjee sold shares worth $31,369,991 and $9,007,797, respectively. Chief Accounting Officer Jennifer Jones sold COIN stocks worth $253,606 during the month.
This sell-off is insignificant compared to the overall transactions in Coinbase stocks. However, analysts believe it does indicate dwindling confidence of insiders and early investors in the first publicly traded crypto exchange in the States.
Ehrsam Leads the Sell-off
The documents show that Ehrsam made the largest single sale on November 4 last year, worth over $63 million.
The sell-off by Coinbase insiders has totaled over $331 million in the last three months, while no purchases have been made by them during that period.
The U.S. SEC guideline requires directors, company officers, and shareholders with 10% or more outstanding stock to report their trading details with the regulator.
COIN Stock in Choppy Waters
Since its listing in April 2021, the performance of Coinbase (COIN) stock has been in line with the overall market movements.
According to public data, the newly-listed stock opened at $381, reached a high of $430, and closed its first trading day at $310.
However, by the first week of May, it slipped below $300 as bitcoin had begun its nosedive. On May 4, COIN stock opened at $292, and despite initially rising, it closed the day at $275. It again attained the $300 territory on October 19, opening at $300 and rising to $308.
Riding the bullish market sentiment in October and November, COIN maintained the $300 territory with a peak on November 9 when it jumped to $369. However, the crypto market correction that started in early December has impacted the shares as well. COIN has spent the majority of its time below $300 and even dropped beneath $240 on January 7.Source