Coinbase, In addition to being one of the largest cryptocurrency exchanges in the world, it is the leading cryptocurrency exchange that is offered to the public. Although Coinbase initially achieved a significant valuation by doing this, COIN price It had an incredible fall. A statement about this was “understood” by everyone.
Coinbase: We Are Not Going Bankrupt
Armstrong, He responded to the reactions after he used the phrase “stock market bankruptcy” in his recent statement. CEO Armstrong stated that the phrase “liquidation and loss of users’ funds” was misunderstood and stated that there was no such risk.
Expressing that they do not have the risk of bankruptcy, Armstrong stated that despite this, cryptocurrencies held for third parties should be declared due to an SEC regulation.
2/ We have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121, which is a newly required disclosure for public companies that hold crypto assets for third parties. https://t.co/lwmgb1kFtA
— Brian Armstrong – barmstrong.eth (@brian_armstrong) May 11, 2022
CEO Armstrong said this after the new terms and clause:
In the event of a possible bankruptcy, Coinbase may present crypto assets held by the exchange as property to be seized, and customers may be considered general unsecured creditors. General unsecured creditors will be the last to receive their receivables in such a case.
Although this new requirement of Coinbase scares everyone, the CEO stated that the cryptocurrency exchange is not in such a situation for now and this will not happen. Coinbase‘s share price, on the other hand, has decreased incredibly, just like its income, and it seems that it will continue to decrease.