Cashback programs have been part of credit cards for a long time now, and their existence is little surprise anymore. But cryptocurrency exchange giant Coinbase (COIN) took a new and unusual step recently by getting together with American Express (AXP) to offer up a new kind of cashback program: one paid in Bitcoin ($BTC-USD). The news did not sit well with investors, though, who sent shares slipping modestly in Monday afternoon’s trading.
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Coinbase will be offering up the card in question to “its most loyal users,” reports note, offering a cashback of up to 4% paid in Bitcoin. The rewards will be based on the assets currently held on the Coinbase platform, and cardholders will be made up entirely—at least for now—of Coinbase One subscribers. There will be no foreign transaction fees either, and payments can be made either through a linked bank account or through the crypto held on the platform.
The early word notes that the card will feature the Genesis Block etched on its surface, making it clear that this is a cryptocurrency enthusiast’s credit card of choice, or should be. It is not just a credit card, but also, as some call it, a “symbol” of the rise and growing prominence of cryptocurrency as an exchange medium.
“Dishonorable Actions”
But even as Coinbase advances on one front, it finds itself under fire on another. Marty Bent, a known Bitcoin advocate, recently called out Coinbase for promoting “worthless tokens” and moving customers away from Bitcoin.
Bent referred to Coinbase as the “…Tower of Babel,” which was engaging in “dishonorable actions” by “…pushing them (users) away from Bitcoin and toward worthless tokens…” While this is somewhat subjective, it does seem that Bitcoin has held its value the longest.
Is Coinbase a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on 14 Buys, 10 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After an 81.82% rally in its share price over the past year, the average COIN price target of $384.41 per share implies 9.22% upside potential.
