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.”
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