Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Coinbase Reacts to Peter Brandt’s Warning that Users Could Lose All Their Bitcoin

Cryptocurrency May 11, 2022 10:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Coinbase Reacts to Peter Brandt’s Warning that Users Could Lose All Their Bitcoin

Coinbase, the biggest exchange in the United States, has come under intense fire after posting its Q1 2022 performance result, which displayed a net loss of $430 million for the first quarter.

Coinbase (NASDAQ:COIN) Users Could Lose All their Crypto

Following the discolure of the significant losses incurred by Coinbase, Peter Brandt, a legendary trader who has been trading the markets since 1975, has warned that the exchange’s users could lose all their Bitcoin if the exchange were to go bankrupt.

Brandt, who became famous for predicting the 2018 crypto market crash, warned that Coinbase was going bankrupt in March 2021, and the recent revelation of the exchange’s financial situation has brought his projections to the fore.

In addition to reporting a loss of $1.98 per share on sales of $1.165 billion, Coinbase has come under fire by the public for a bankruptcy statement which was included in the report. An excerpt from the report read;

“In the event of a bankruptcy, the crypto assets we hold in custody on behalf of our clients could be subject to bankruptcy proceedings. Such customers would be treated as our general unsecured creditors.”

Brian Armstrong Defends Coinbase

Reacting to the rebukes, Coinbase CEO Brian Armstrong has come to the defense of the exchange, assuring users, and the crypto space at large, that their funds were as safe as always with the exchange.

According to Armstrong, Coinbase is at no risk of bankruptcy. However, he added that the exchange would update its users’ terms to guarantee client protection at all times, even in the instance of a “black swan event.”

On the Flipside

  • Coinbase has cleared the air, dismissing rumours that the exchange would be teaming up with Robinhood (NASDAQ:HOOD), or even engaging in an acquisition.

Why You Should Care

Armstrong has clarified that Coinbase Prime and Custody users have strong legal protections protecting their assets at all costs.

Continue reading on DailyCoin

Coinbase Reacts to Peter Brandt’s Warning that Users Could Lose All Their Bitcoin
 

Related Articles

EU agrees rules to tame 'Wild West' crypto market
EU agrees rules to tame 'Wild West' crypto market By Reuters - Jun 30, 2022 2

By Huw Jones LONDON (Reuters -The European Union has agreed on ground-breaking rules for regulating crypto assets, EU lawmakers said on Thursday, as the rout in bitcoin piles...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email