Shares in Nasdaq-listed cryptocurrency exchange Coinbase (COIN) tanked 19.6% to $314.69 last week, registering its worst performance since September 2024, according to data source TradingView. On Thursday, COIN published its second-quarter earnings report, revealing a net operating earnings per share of 12 cents, with an 88.8% year-over-year decrease in the bottom line. The $1.5 billion in revenue fell short of FactSet's $1.59 billion estimate, while the EBIDTA declined to $512 million as transaction revenue slipped 39% from the previous quarter. The price sell-off is consistent with the late June analysis by crypto research firm 10x , which stated that the second-quarter price rally appeared overstretched relative to fundamentals. The firm recommended shorting COIN while buying BTC. Early last month, investment firm H.C. Wainwright sharply downgraded Coinbase to Sell from Buy, saying that the second quarter rally outpaced fundamentals. COIN put options in demand The sell-off has traders chasing downside protection in COIN. As of Friday, the one-year put-call skew, which measures the implied volatility (demand) differential between put and call options, rose to 2.6%, the highest since April 21, according to data source Market Chameleon . In other words, put options, offering insurance against price losses in the underlying asset, traded at a 2.6 volatility premium to call options or bullish bets. Read more: Bitcoin Still on Track for $140K This Year, But 2026 Will be Painful: Elliott Wave Expert
