Exchange Coinbase has denied having any issues with withdrawals after being affected by the rumor of FTX, the exchange that has paused cryptocurrency withdrawals amid a controversy with Binance.
Tension between the world’s largest cryptocurrency exchanges has dragged Coinbase into the eye of the storm.
Coinbase is the largest platform in the United States and a publicly traded company. That is, any issue associated with it must be reported to the US CVM as it is a highly regulated multi-shareholder company.
Coinbase CEO Brian Armstrong is also trying to calm his customers amid the rumours.
Coinbase Denies Withdrawal Issues After FTX Freezes Withdrawals
Binance announced the purchase of FTX to resolve a liquidity problem in the exchange after days of tension between the two companies.
But through its social networks, Coinbase was tasked with dispelling all rumors about the battle between its two main competitors.
In a warning from security firm Certik, it became clear that internet reports said Coinbase had also halted withdrawals. If confirmed, it could be possible that the largest US platform has some exposure to the FTX Token (FTT) or the exchange itself.
“There are several reports from the user community that are having problems withdrawing funds from Coinbase after the FTX crash. Coinbase co-founder and CEO Brian Armstrong refutes such claims and claims to be the most trusted crypto community.”
There have been multiple community reports of users having issues with recording assets from @Coinbase after the FTX fallout.
Coinbase Co-Founder and CEO @brian_armstrong refutes such claims and doubles down on the fact that it is the most trusted crypto community.
🇧🇷
— CertiK warning (@CertiKAlert) Nov 9, 2022
What does Coinbase’s CEO say?
To clarify the situation and quell rumours, Coinbase said it has support for all its customers’ cryptocurrencies.
In addition, investor-owned cryptocurrencies do not mix with coins owned by the platform itself, the CEO said. Brian Armstrong🇧🇷
He recalls that situations like FTX’s are stressful, especially because of the chance of losing customers.
However, Coinbase has never acquired FTT or participated in FTX’s business, including the potentially insolvent Alameda Research, the linchpin of the current market crisis.
“Second, Coinbase has no material exposure to FTX or FTT (and no exposure to Alameda).”
According to Brian, it’s possible that FTX’s business was mismanaged and under management, leading to the impending collapse of the major brokerage, which had been solid until then.
Another point driving the Coinbase crisis out is that the company does not have its own token, which Armstrong says is important for his business.
Finally, he said that situations like this often pressure the market for more regulation, but he believes it is important to implement sensible and non-rigid rules for cryptocurrency exchanges.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
