While COIN Keeps Tanking & ARK Dumps Coinbase Shares, Coinbase Releases First Part of BAYC-Featured Movie.

The first installment of Coinbase's Bored Ape Yacht Club (BAYC)-themed movie, "The Degen Trilogy," has been released, while the company's shares continue to fall as the US Securities and Exchange Commission (SEC) launches an investigation into whether the exchange has listed unregistered securities.

On Tuesday, Coinbase released what appears to be the first installment of its trilogy. The five-minute film, titled "RUN THE CHAIN," features dozens of BAYC non-fungible tokens (NFTs) as well as ApeCoin, an Ethereum (ETH)-based governance and utility token of the BAYC ecosystem.

According to reports, Coinbase's official Twitter account teased the film trilogy in mid-April, stating that the company is "creating an interactive three-part film featuring" the BAYC and Apecoin communities. At the time, the exchange provided some instructions to BAYC NFT holders on how to have their NFTs featured in the film.

Coinbase's official Twitter account mentioned yesterday in a follow-up tweet that those who want their NFTs to be featured in the upcoming Parts 2 and 3 must create a profile on the exchange's an NFT marketplace.

Meanwhile, it appears that the crypto community is having difficulty understanding the film and its goal.

"Bruh. You just called a peak. Of what I'm not sure, but this is peak something," one Twitter user commented.

Others have pointed out that the exchange chose a bad time to release its film. Another user commented, "Great situational awareness and timing to drop this today! SEC probably laughing at them behind closed doors."

As previously reported, the SEC has launched an investigation to determine whether Coinbase listed digital assets that should have been registered as securities.

Nonetheless, despite the increased scrutiny, the exchange's shares continue to fall. Coinbase's stock fell as much as 21.08 percent on the previous trading day, falling to USD 52.93 per share.

Cathie Wood's Ark Investment Management sold more than 1.41 million shares of COIN on Tuesday, according to Bloomberg, worth approximately USD 75 million as of Tuesday's close. On Tuesday, Coinbase Global's stock dropped by about a fifth of its value.

Ark sold at a low of USD 53, implying that the firm believes COIN's losses will be extended in the coming days.

According to Bloomberg, Ark has been buying Coinbase shares since its 2021 debut and was the third-largest shareholder of Coinbase as of the end of June, holding 8.95 million shares.

However, Ark has lost nearly half of its assets under management since December, and it's Ark Innovation ETF is down nearly 50% in 2022 - and "Wood is now closing one of her exchange-traded funds for the first time ever."