- Bitcoin and Ethereum are down more that 50% from their all time high in late 2021
- On wednesday crypto exchange giant coinbase said that it had no financial exposure to crypto firm Celcius Network
- Expert say that crypto market will no longer go lower from the current stage
This year the crypto market has seen some major ups and downs, especially the first half of 2022. Bitcoin and Ethereum are down more than 50% from their all time highs in late 2021 at the same time crypto market has also seen some of the largest digital currency lending platforms and hedge funds implode.
For some time there has been news all around that crypto exchange giant coinbase is about to go bankrupt although the CEO of the company has denied the news multiple times. On Wednesday crypto exchange giant coinbase said that it had no financial exposure to crypto firms Celsius Network, Voyager Digital or Three Arrows capital –all which were declared bankrupt this month.
In a blog, the company said, “Coinbase had no financing exposure to the group above.We have not engaged in these types of risky lending practices and instead have focused on building our financing business with prudence and deliberate focus on the client.
One of the coinbase post said that
“We believe these market participants were caught up in the frenzy of a crypto bull market and forgot the basics of risk management . “ Hedge bets,huge investment in the Terra ecosystem and massive leverage provided to and deployed by 3ac meant that risk was too high and too concentrated. These events are Unfortunately more common in the traditional financial market than we would hope.”
There has also been news that the coinbase is allegedly shutting down its U.S affiliate marketing program . There were also several reports that the exchange is also facing its own liquidity crisis. After discovering that Coinbase is “temporarily shutting down” its US affiliate marketing campaign came as Business insider saw leaked emails from inside the company.
Coinbase is among one of the most trusted cryptocurrency exchanges today. And after the news of the company going bankrupt Coinbase tried to reassure users starting on its website that “ TLDR :your funds on Coinbase are protected, secure and yours,” the company said. “You may have heard some noise recently about who owns your asset and what claim coinbase creditors may have to them . The reality is that your assets are ..your assets Not ours or anyone else
According to the experts, despite the current crucial condition of the crypto market, the crypto market would not go lower from the current stage and discard the theory that the crypto market is dead.
The cryptocurrency market has seen many big and small falls since one last year and has always bounced back all the time, said Gaurva Dahake CEO & founder Bitbns.
Source: https://www.thecoinrepublic.com/2022/10/30/coinbase-ceo-brian-armstrong-said-no-risk-of-bankruptcy/