Fears Coinbase could fall apart as “crypto winter” undermines digital currency exchange
Coinbase shares reached a historic low after the digital currency exchange published sad results, which raised fears that it could fall apart with the onset of the “crypt of winter”.
Shares fell 30% on Wall Street after the company’s regulations found that any crypt it held for customers “could have been subject to bankruptcy”, raising concerns about its financial health.
Anxiety among investors and users prompted boss Brian Armstrong to tweet that the company “is not at risk of bankruptcy” and the funds are “reliable … as always.”
Coinbase’s stake fell 30% on Wall Street after the company’s regulatory documents revealed that any crypto that it held for customers “could be subject to bankruptcy”
He also apologized for not speaking “proactively” when the wording was added.
The fall in shares came after he reported results that led to a loss of £ 349 million in the first quarter of 2022 from a profit of £ 625 million a year ago.
The numbers were much worse than analysts feared.
They were accused of “lower crypto asset prices” and market volatility as investors fled the digital currency market amid rising interest rates and fears for the health of the global economy.
Shares of Coinbase, which tend to track the health of the wider crypto sector, have lost about 85 percent of their value since their debut on Wall Street last April.