The US based cryptocurrency exchange Coinbase is slightly affected by the FTX downward wave. Goldman maintained its sell rating on Coinbase and reduced its year end price forecast to $41 (USD) from $49 (USD).
“When new technologies come on the scene, they often go through these cycles, and the good companies can ride through,” Coinbase’s CEO stated.
Coinbase CEO Brain Armstrong assured their platform users that Coinbase is a regulated institution and that the entity holds users’ funds as one-to-one backed, making a situation like FTX impossible. Brain stated that he was upset with the recent third quarter earnings report.
He thought it was necessary to provide clarity about how Coinbase crypto assets are different from others. The new approach is to maintain transparency, risk management, and consumer protection.
“Coinbase is a publicly traded company in the United States, and we have built our business in a way that allows us to be transparent about our track record, balance sheet strength and effectively and prudently manage risk for our customers and ourselves,” Brain stated.
Brain said the crypto regulation in the US plays a vital role in avoiding crypto asset breakdowns like FTX. Because crypto regulation in the United States is too difficult to implement, until now some of the popular regulators in the country have failed to introduce new regulations on cryptocurrency.
“Crypto markets need regulation to avoid more washouts like FTX,” Brain added further.
Recently, the President of the United States reacted to this matter and ordered lawmakers to prepare legislation to regulate cryptocurrency in the country. Janet Yellen, US Treasury Secretary, officially stated that the country needs rigid regulations on the crypto industry. The lawmakers also accepted the idea of Janet Yellen; they said now is the time to implement new regulations on cryptocurrency.
The CFO, Alesia Hass, stated that “At Coinbase we are different. And as we clearly disclose, we are holding customer assets one-for-one. So there can’t be a run on the bank at Coinbase.”
How To Deposit Crypto Into Coinbase Wallet
- Buy Crypto
- Transfer Crypto
- Import a wallet
- Network fees
The United States’ largest crypto currency exchange platform, Coinbase, announced its third quarter earnings, which show a decline in the profits. Due to weak market conditions and lawsuits filed against Coinbase, revenue fell to $576.4 million (USD), a decrease of 28% from second quarter earnings. Its net loss was reduced to $544.6 million (USD).
Coinbase is looking to expand its global market into European nations. Recently, it got permission from the Netherlands and Italy to start their crypto businesses. Brian Armstrong, recently attended the Singapore Fintech Festival (SFF) 2022 event. On this occasion, he stated that regulation can protect retail users of the crypto assets while enabling Web3 innovations.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/15/goldman-lowered-its-coinbase-year-price-forecast-to-41-usd/