Shares in Coinbase (COIN) are plummeting to a new all-time low as the industry continues to deal with the aftermath of the collapse of FTX and its associated entities.
Coinbase was already facing headwinds as a result of the crypto bear market and is now facing more uncertainty due to the disintegration of FTX, which used to be the second-largest crypto exchange in the US by volume.
Opening the month at $63.29, COIN closed at $41.23 on Monday, which rice is its lowest price to date and marks a drop of around 35% this month.
The price drop puts COIN down by over 90% from its all-time high of $426, which it saw on its opening day in April of 2021.
Coinbase CEO Brian Armstrong commented on the FTX collapse, referring to it as a “non-issue.” While affected by the overall damage it did to crypto markets, Armstrong said that Coinbase has a completely different reserve system that was fully audited by respected firms, unlike FTX.
Says Armstrong during an interview on CNBC,
“So for Coinbase this is a non-issue and the reason is that we hold customer funds one-to-one backed. And you don’t have to take our word for it. We are a public company and so we publish audited financial statements by a Big Four accounting firm. And when we went public in the United States we filed and registered an S-1 with the SEC and we explained to them exactly how our business works. We showed them our audited financials and they approved us as a company to go public.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/urzine