Coinbase CEO Says Market Fear And Volatility Are A `Moment To Shine`

The executive told staff that Coinbase does not have material exposure to rival Binance and has $5 billion on its balance sheet.

With Coinbase's shares are at an all-time low, CEO Brian Armstrong sent out a memo to staff reassuring them that unlike other struggling or failed crypto exchanges, their company would persevere.

“This is our moment to shine,” wrote Armstrong in a communication obtained by The Block. “It was not always easy, as we saw competitors skirt rules and rocket up in value and media attention.”

Armstrong also urged employees to be “prepared to serve” customers amid market volatility, citing what he called “large withdrawals happening on Binance” as potentially a contributing factor.

The 39-year-old chief executive also sought to remind staff that Coinbase does not have material exposure to rival Binance, safely stores customer assets and possesses $5 billion on its balance sheet. Coinbase shares closed Tuesday's trading session below $39 apiece, marking an all-time low.

The comments come on the heels of weeks of turmoil spurred by liquidity uncertainty and crisis, bankruptcies and layoffs spurred by the collapse of multi-billion dollar crypto exchange FTX.

Ever since FTX customers demanding to withdraw funds contributed to the exchange's downfall the industry has been on high alert. Binance, the world's largest cryptocurrency exchange platform by daily volume, has seen since Monday a net outflow of over $2 billion in various crypto assets, according to estimates from Simon Cousaert, director of data at The Block. 

Binance claims to hold more than $60 billion worth of assets across all of its wallets. Binance's BNB token dipped 2.1% today after the company resumed USDC withdrawal requests around midday EST. The exchange had temporarily stopped processing withdrawals due to inadequate reserves on the platform, according to Binance CEO Changpeng Zhao.

Frank Chaparro contributed reporting.

Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions. (edited) 

Source: theblock.co