15 February 2022

Market News

Coinbase stock tumbles following viral Super Bowl ad

Coinbase couldn’t handle the traffic generated from its ad debut on Super Bowl causing a brief outage and a dip in stock prices.   

Coinbase was both praised and criticized for its cryptic Super Bowl ad debut. However, the Nasdaq-listed cryptocurrency exchange wasn’t prepared for how this massive increase in traffic would affect its server infrastructure. The result? Website outages, traffic throttling and the inevitable stock dip.   

Getting your advertisement featured on such a high-profile event as the Super Bowl, of course, comes at a heavy price already and any brand worth its salt tends to go all out – investing in a star-studded cast as well.

However, Coinbase decided to go completely the other way, and even though their ad was nothing more than a bouncing QR code, it ended up being more successful than its own website could handle.  

The Coinbase ad

Coinbase stood out from the rest of the pack by opting for a very cryptic QR code bouncing along the sides of a black background for 60 seconds instead.

Those that did end up scanning the QR code, before the outage, ended up on Coinbase’s website where they could claim $15 of Bitcoin for free just for signing up for a Coinbase account – along with other prizes.

Impact on stock price

As soon as the server issues began, Coinbase started to throttle traffic to its website in order to provide relief to its servers. However, the damage had already been done: stock prices dropped by nearly 2% and ended up finding support at $190.

Thankfully, the bouncing QR logo was a wild success and prices also bounced back to normal levels shortly after. Coinbase is currently trading near $196, however, Bitcoin’s recent rocky performance could also be capping any potential upside.

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