Coinbase Dispels The Doubts Of Its Users, Ensuring No Exposure To Celsius, 3AC Or Voyager
✍️ 21 July, 2022 - 8:36 👤 Editor: Jakub Motyka
- The liquidity crisis generated by Celsius, 3AC and Voyager has put a lot of pressure on the crypto ecosystem.
- Coinbase reassures its users by ensuring they are fully solvent and not do business with these companies.
- Following the release, COIN shares rose 16% on NASDAQ.
Coinbase has been one of the main targets of the wave of FUD that has taken over the crypto market, with great exposure among users. This, due to the insolvency crisis they are experiencing going through entities of the DeFi world such as Celsius, Three Arrows Capital (3AC), Voyager, among others. For this reason, the US exchange has decided to respond forcefully to the rumors.
After the suspension of the affiliate program and the Pro version of Coinbase, some Twitter users became suspicious about the possible insolvency crisis of the company. As the crypto winter progresses and It is claiming new victims, fear and mistrust are gaining strength among investors. For example, Ben Armstrong, better known as Bitboy, pointed out the exchange's actions very negatively. However, he ruled out the possibility of bankruptcy, since his large investors would not allow it.
What Has Been Coinbase's Response To Rumors Of Its Insolvency And Exposure?
Coinbase posted in your official blog that they had “no funding exposure” to the companies that plunged into bankruptcy as a result of the crypto winter. Let's remember that at the time of the LUNA crash, companies like Celsius and 3AC lost a large part of their capital in the process. On this, the exchange pointed out that they have not engaged in such risky lending practices and instead have focused on building their own funding business prudently.
According to Coinbase, risk management is the fundamental principle of the company, ensuring to keep client assets fully backed. The news had a very positive action on the exchange's valuation within NASDAQ, as the value of its shares soared 16% after the publication.
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