Despite the fact that the malfunction lasted minutes rather than hours, it had far-reaching ramifications, as Bitcoin’s heading towards $40,000 puts even more pressure on COIN.
Coinbase (COIN), a cryptocurrency exchange based in the United States, has seen its stock drop 5% in pre-trading after a disastrous Super Bowl 2022 ad debut.
COIN was poised to open at $194.53 before Monday’s Wall Street open, according to data from TradingView.
Snowden describes the Coinbase disaster as “very internet-like.”
For crypto investors, the Super Bowl 2022 has been a memorable event, with several of the industry’s top companies running full-scale ad presentations.
Coinbase’s publicity, on the other hand, swiftly went sour when the platform’s website and app both failed after the ad’s promise of a $15 gift was broken.
@coinbase just saw more traffic than we've ever encountered, but our teams pulled together and only had to throttle traffic for a few minutes. We are now back and ready for you at https://t.co/ZUJqRlnZPH. Humbled to have been witness to this. #WAGMI
— Surojit (@surojit) February 14, 2022
Coinbase did not escape extensive social media jibes, some of which became viral in their own right, despite the issues lasting less than an hour.
The ad’s price tag, which came in at nearly $15 million for a one-minute spot, was also amusing.
“Coinbase spending $16 million on a Super Bowl ad to direct people to their website and $0 to make sure the website doesn’t crash 10 seconds after the ad starts is so very internet,” Edward Snowden tweeted.
The blunder is far from unusual for the American behemoth, which has been in the news far too often for system outages, sometimes during critical times for Bitcoin price action, such as periods of unexpected volatility when trading opportunities are at their most lucrative.
However, many people complimented the ad’s approach, as well as those of fellow participants FTX and Crypto.com.
The current state of BTC adds to the melancholy.
With the two assets clearly correlated, Coinbase’s stock squeeze comes at a similar inconvenient time for Bitcoin traders.
At the time of writing Monday, BTC/USD has fallen just under 1% in the previous 24 hours, part of a multi-day trend that could be paving the way for a retest of $40,000 as support.
Coinbase stated last week that it was teaming with One River Digital Assessment Management to develop a new platform designed exclusively for institutions, if the Super Bowl prank was intended to attract retail clients.
Following retail adoption in 2021, that segment of crypto investors is expected to make a strong comeback this year.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
