The largest cryptocurrency exchange in the U.S., Coinbase, has stated that it is not exposed to FTX, which is still draining liquidity.
Markets are in a state of shock following last week’s Binance and FTX saga, which has been dubbed the “year of crypto contagions” in 2022.
The latest news is that FTX will probably be sold to Binance, making Binance the world’s largest centralized crypto monopoly. By the 24-hour volume, Coinbase is now the second-largest CEX in the cryptocurrency market.
Brian Armstrong, the CEO of Coinbase, stated on Twitter that the exchange has no exposure to FTX.
Armstrong continued by touting the benefits of his own exchange and saying that it looked that dangerous business practices caused the incident.
According to him, Coinbase never “plays” with users’ money unless the client specifically requests it. The exchange is publicly listed with complete transparency and audits, and it has never launched its own cryptocurrency.
He went on to say that focused regulation was 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 due to the confusing regulatory environment and lack of transparency, Americans are losing money on these “overseas blowups.”
In Q3, compared to the same time in 2021, Coinbase, which levies some of the highest fees in the business, recorded a 50% decline in income.