American crypto exchange giant Coinbase has confirmed that it has no exposure to FTX, which continues to leach liquidity.
2022 has been the year of crypto contagions, and markets are reeling from this week’s debacle between Binance and FTX.
The latest development, as reported by BeInCrypto, is that FTX will be sold to Binance, making it the largest centralized crypto monopoly on the planet.
That leaves Coinbase as the second-largest CEX in the crypto industry by 24-hour volume. On Nov. 9, Coinbase CEO Brian Armstrong took to Twitter to confirm that the company had no exposure to FTX.
No FTT Holdings For Coinbase
“Coinbase doesn’t have any material exposure to FTX or FTT (and no exposure to Alameda),” he stated. FTT tokens have dumped a whopping 75% over the past 12 hours in a fall to $4.82 at the time of writing, according to CoinGecko.
Armstrong went on to tout the advantages of his own company, stating that the event appears to be the result of risky business practices. It has also been exacerbated by “conflicts of interest between deeply intertwined entities and misuse of customer funds,” he added.
He said that Coinbase doesn’t take risks with customer funds unless the customer instructs them to do so. The exchange has never issued its own token, and it is publically listed with total transparency and audits.
Armstrong fingered focused regulation as part of the problem:
“Part of the issue here is that regulators have been focused onshore in each of their respective markets, while customers have moved offshore to companies with more opaque and risky business practices.”
He said that Americans are losing money on these “overseas blowups” because of the regulatory uncertainty and lack of clarity at home.
Coinbase, which charges some of the highest fees in the industry, reported a 50% revenue slump in Q3 compared to the same period in 2021.
Crypto Markets Dump $160B
The crypto contagion has impacted the wider market, which has lost $160 billion since its weekend highs.
Total market capitalization has tanked a whopping 12.3% on the day, falling to $937 billion. As a result, markets are now at their long-term support zone and in danger of another large drop.
Bitcoin has been battered by 11.6% in a fall to $18,116 at the time of writing. Meanwhile, Ethereum has tanked 15.5% to $1,293, according to CoinGecko.
All of the altcoins are bleeding at the moment, with XRP, DOGE, MATIC, and SOL taking the biggest hits.
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