Even after the company dismissed such claims and aggressively expanded its business offshore, rumors of Coinbase’s bankruptcy persist.
July 2022, Coinbase pause its affiliate program. A month before we shut down Coinbase Pro (Coinbase’s advanced trading arm), we announced a similar feature called Advanced Trade. In addition to these two announcements, the merger of the USD and USDC orderbooks has sparked rumors swirling that Coinbase is going bankrupt.
Additionally, Coinbase’s financial performance in 2022 has been a major blow to cryptocurrency exchanges after the 2021 bull market overheated in most cryptocurrency markets.among them Second quarter earnings report, the company outlined a material loss of about 1.1 billion. This was a nearly 60% decline in terms of revenue, largely due to macroeconomic factors and systemic factors in the cryptocurrency industry, which led to a drop in Coinbase trading volume.
The crypto community seemed divided. On one side of the spectrum are those who claim Coinbase is on the brink of bankruptcy (a claim Coinbase has repeatedly dismissed) and those who claim this is nothing more than FUD. Rumors and controversy have sparked in the aftermath of the collapse of cryptocurrency companies such as Celsius, Voyager and Three Arrows Capitals. All of these companies were directly exposed to Terraform Labs and the bankrupt UST/LUNA.
“We prioritize risk management,” the company said in the second quarter shareholder letter, emphasized that it has never done business with the above companies. Instead, Coinbase said in its second quarter earnings call that it has invested heavily in developing products with high-quality features and adequate risk management for retail users and institutional investors.
‘No risk of bankruptcy,’ says Brian Armstrong
Brian Armstrong says the company is not at risk of bankruptcy, but is committed to giving retail users the same legal protections as Prime and Custody customers in the event of a black swan event. .
this comes after Coinbase 10-Q Form It was filed with the SEC and essentially stated that the retailer’s funds would be at risk in the event of bankruptcy. The SEC’s SAB 121 requires disclosures from public companies that control cryptocurrencies on behalf of third parties.
What’s next for coinbase?
Coinbase is currently dealing with pressure from the SEC. The regulator has sent multiple subpoenas and document requests to the exchange, along with all relevant information regarding the staking program, yield-generating products, and token listing process. The SEC has previously challenged exchanges by stating that nine-tenths of cryptocurrencies are securities, but the SEC has repeatedly dismissed this claim.
Pressure from US regulators prompted Coinbase to fight back and support digital asset manager Grayscale in its legal battle with the SEC. The latter is suing the SEC for rejecting the Bitcoin ETF, saying the SEC “fails to apply consistent treatment to similar investment vehicles.”
Political frenzy in the U.S. aside, Coinbase will continue to promote the U.S. and international marketplace, such as a cryptocurrency scorecard that lets you know the stance of U.S. politicians on cryptocurrencies based on where Coinbase users live. We focus on launching new products and services.
coinbase recently Partner with Google Allow users to pay for cloud services with cryptocurrencies. Both companies say the collaboration will help popularize his Web3 technology in 2023 and beyond.
Coinbase, which generates most of its revenue through transaction fees on its platform, is set up to capture a portion of cryptocurrency payments made to Google’s cloud services. Exchange moves data-related applications from Amazon Web Services to Google.
The tech giant is also reportedly exploring ways to use Coinbase Prime, a service that allows organizations to safely store their cryptocurrencies and perform transactions. to “see how you can participate” in managing cryptocurrencies.
Coinbase also expands its services for retail investors in Australia, facilitating the buying, selling and trading of cryptocurrencies.
Our office is introduction PayID as a form of direct deposit from a bank account. It enables AUD deposits and withdrawals, as well as access to over 200 crypto assets. Additionally, the company said it will offer an Advanced Trading interface for professional traders.
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