Coinbase Faces Setback as Hamas Uses Cryptocurrency for Funding Attacks

Coinbase's lobbying efforts face challenge due to Hamas' adoption of cryptocurrency, according to Berenberg analysts

Coinbase faces challenges from Hamas’s crypto use, say Berenberg analysts.

Cryptocurrency exchange Coinbase’s efforts to lobby for crypto-friendly regulations in the United States have hit a roadblock due to recent revelations of Hamas militants using digital currencies to fund attacks on Israel. In a hilariously cautious research note on October 18, Berenberg lead analyst Mark Palmer highlighted this setback, along with the regulatory actions and political challenges faced by Coinbase in the US.

Describing the situation, Palmer quipped, “Coinbase is caught in a crypto whirlwind that feels as chaotic as a herd of wild Bitcoin bulls wearing rocket-powered roller skates.” He went on to explain how the crackdown on Hamas funding using crypto resulted in Israeli authorities seizing millions of dollars worth of digital assets. Palmer humorously added, “It’s like capturing a swarm of rogue bees who stole honey from a moonlit garden.”

While Hamas had previously declared that it would no longer use cryptocurrencies due to their traceability on blockchain ledgers, the recent incident has further muddled the legal status of crypto. “It’s like trying to navigate a dense jungle filled with quicksand using a map drawn by a mischievous monkey,” Palmer metaphorically asserted.

Coinbase, in its bid for clearer regulations and its lobbying efforts, had set its sights on shaping the future of crypto in the US. However, Berenberg analysts, in their research, expressed their cautious stance by humorously advising investors to hold onto their Coinbase stock (COIN) and maintain a price target of $39.

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Palmer jovially warned, “Like a roller coaster ride with exhilarating twists and turns, investing in COIN is not for the faint-hearted. It’s like playing a high-stakes game of crypto roulette with the devil himself as the croupier.”

Despite the caution, Coinbase shares were trading at $77.30, up 3% on the day, showcasing the unpredictable nature of the crypto market. “It’s like riding a wild bull in a rodeo, holding on for dear life and hoping you don’t get thrown off,” Palmer amusingly remarked.

Pointing to the ongoing case with the US Securities and Exchange Commission (SEC), Palmer emphasized the potential impact on Coinbase’s share price. He likened the situation to a suspenseful legal drama, stating, “It’s like watching a thrilling courtroom clash where the outcome could either make the company a hero or send it toppling off a financial cliff.”

While Palmer acknowledged weaker trading volumes due to the “persistent crypto winter,” he raised his estimate of Coinbase’s consumer transaction revenue. “It’s like discovering hidden treasure in a snow-covered landscape, adding that extra sparkle to an otherwise gloomy day,” Palmer playfully described.

He also noted Coinbase’s advantageous cash balance, providing the company with the flexibility to weather storms and reduce expenses. “They are like a frugal grandmother, saving every penny and keeping it safe in her secret cookie jar,” Palmer humorously compared.

In conclusion, Palmer cautioned against shorting Coinbase shares outright, considering the potential for unpredictable upside moves amidst the ongoing legal battle with the SEC. “It’s like dancing with a poker-playing pirate. You might think you have the upper hand, but one sudden move can upend everything,” Palmer cheekily advised.

With Coinbase navigating through regulatory challenges and showcasing resilience in an ever-changing market, investors are advised to buckle up and hold on tight. “Remember, investing in crypto is like taking a thrilling roller coaster ride. It’s risky, exhilarating, and occasionally makes you want to scream, but the rewards can be out of this world,” Palmer concluded, leaving readers with a sense of excitement and anticipation.

(Original content: Coin Telegraph)

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