Coinbase co-founder Fred Ehrsam has shown his bulling sentiment on the crypto exchange’s stock by spending a whopping $48.8 million on purchasing 800,000 shares across Tuesday and Wednesday. This means he now holds a 5.6 million stake in Coinbase (COIN) indirectly through three entities: Paradigm One LP, The Frederick Ernest Ehrsam III Living Trust, and Paradigm Fund LP.

Coinbase launched its Initial Public Offering (IPO) on Nasdaq Exchange in April 2021 and since its listing, COIN saw a massive 75% drop from its opening bid. However, in year-to-date terms, Coinbase’s stock has become very competitive in the market as it has shown a growth of 81%.

Shopify CEO Tobias Lutke also acquired a large amount of Coinbase stock for which he spent hundreds of thousands of dollars every week in the beginning of 2021. However, the purchases have been ceased recently, according to OpenInsider data compiled by Blockworks.

In addition to Ehrsam and Lutke, Coinbase CEO Brian Armstrong has also been liquidating his shares slowly to fund his other ventures. He intends to offload around 2% of his holdings over one year.

Ehrsam is an ex-Goldman Sachs foreign exchange trader and, together with Armstrong, established Coinbase in 2012. He has been involved with the company ever since and is currently serving as a company director. Moreover, he co-founded the cryptocurrency investment firm Paradigm with Matt Huang, a former Sequoia Capital partner, after leaving the day-to-day role at Coinbase in 2017.

The businessman first purchased Coinbase dip one year ago when he spent a total of $76.8 heading for 1.1 million COIN stock. Consequently, Ehrsam’s cost average presently stands at $65.67 and thus, he is about 9% down on his Coinbase stock purchases.

Fred Ehrsam’s purchase appears indicative of his faith in Coinbase and depicts a promising future for the US based crypto exchange.



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