Coinbase Drops 10% On Binance-FTX Contagion, Says No Exposure To FTT

Coinbase allayed fears of its clients in the face of worries that it might have been affected by a development that made the crypto space lose all of its gains since it rallied back in October 25.

On Tuesday, the price of shares of the cryptocurrency exchange platform declined by 10.78% as it settled to $50.83.

One culprit for this sudden dip that Coinbase is experiencing is the culmination of a spat that involved its fellow exchanges Binance and FTX.

This is after Changpeng Zao, the CEO of Binance, announced his company will be buying FTX, the Bahamas-based crypto exchange platform owned by Sam Bankman-Fried.

Shortly after this news went public, FTT, the native crypto asset of FTX, experienced severe price dump as it lost almost 80% of its value in just 24 hours.

According to tracking from Coingecko, the digital asset is trading at $4.20 at the time of this writing. Its spot trading price is significantly lower than the $25 territory it held before Binance announced it will unload all of its holdings of the token.

Coinbase Assures It’s Not Affected By Binance-FTX Brouhaha

The crypto exchange admitted having technical concerns on Tuesday as users had problems with web and mobile connection.

Coinbase has yet to release a statement if said issues have already been addressed but assured it has nothing to do with the Binance-FTX brouhaha.


In fact, the company said it only has minimal exposure to Bankman-Fried’s FTX as it only has $15 million worth of deposit there that is dedicated for customer trades and business operations.

The Brian Armstrong-led firm also emphasized it has no exposure to both FTT and FTX’s investment arm, Alameda Research.

Some experts think that if the situation between FTX and Binance doesn’t take a turn for the better over the next few days, Coinbase will continue to be affected as its share prices might be pulled down to even lower levels.

Binance-FTX Drama Jolts The Crypto Market And Coinbase

It would appear that the Binance-FTX situation has greatly impacted the crypto market as many assets were smothered in crimson yesterday.

Bitcoin, for example, has once again fallen below the $18K marker after briefly reclaiming and maintaining the $21K zone. At press time, the maiden crypto is trading at $17,975.

Ethereum, the king of all altcoins, plummeted all the way down below the $1,300 marker as it is now changing hands at $1,220.

Moreover, in a span of 24 hours, the entire crypto market lost 11% of its total market cap which now stands at $913 billion.

As cryptocurrencies continue to bleed, the sector’s overall valuation will continue to decline and will probably take some time to once again regain the $1 trillion territory.

Crypto total market cap at $824 billion on the daily chart | Featured image from Cointribune, Chart:

Related Posts

Ripple to tackle $9-trillion dollar market and could serve 50% of world’s population

Ripple is confident that its XRP Ledger is capable enough to handle stablecoins and CBDCs for billions of people across the world. Ripple said that central banks…

Report: AAX Users Storm Crypto Exchange’s Nigerian Offices, Attack Employees

Nigeria users of the crypto exchange AAX, which suspended withdrawals on Nov. 12, reportedly stormed its offices in Lagos and began assaulting employees. Reports that disgruntled AAX…

Polygon partners with Walmart and industry giant Flipkart from India – Will MATIC price rise to $50?

Ethereum layer 2 scaling protocol Polygon enters partnership with Walmart-associated Indian e-commerce marketplace Flipkart  Polygon’s multiple recent partnerships has been boosting the price of MATIC Flipkart, one…

Mysterious Bitcoin miner shows off oldest signature dated Jan. 2009

Answering the question ‘Who has/had the oldest mined Bitcoin?’ an anonymous member shared a signature dating back to January 2009, just a week after Bitcoin came into…

Demand for Cryptocurrency Miners Rises in Russia Amid Low Prices of Hardware

Russia’s market for specialized crypto mining equipment has been seeing high demand over the past couple of months, with buyers attracted by the low price tags. Russian…

How NFTs Can Shape the Future of Music

When people hear of NFTs, the first thing they think of is beautiful but quirky digital images. But those images are only one kind of NFT. NFTs…

Generated by Feedzy