Coinbase COIN CEO Brian Armstrong touched upon the recent FTX FTT/USD crash and subsequent rescue call to Binance that sent shockwaves through cryptocurrency markets.
What Happened: Armstrong said he has “a lot of sympathy for everyone involved in the current situation with FTX.”
He added, “Coinbase doesn’t have any material exposure to FTX or FTT (and no exposure to Alameda).”
3/ I think it’s important to reinforce what differentiates Coinbase in a moment like this. This event appears to be the result of risky business practices, including conflicts of interest between deeply intertwined entities, and mis-use of customer funds (lending user assets).
— Brian Armstrong (@brian_armstrong) November 8, 2022
Binance CEO Changpeng Zhao declined an offer to sell its FTT holding to Alameda Research, but only to announce the acquisition of FTX.
See More: How to Use Binance Smart Chain
Armstrong said, “It’s important to reinforce what differentiates Coinbase in a moment like this”, adding that such an event “appears to be the result of risky business practices, including conflicts of interest between deeply intertwined entities, and misuse of customer funds.”
Why It’s Important: These are “risky behaviors” that Coinbase “does not engage in”, Armstrong said, adding that the exchange doesn’t do anything with customer funds unless directed by them and that customers can withdraw their funds at any time.
“Every investor and customer can see our publicly audited financials,” he noted. “Which shows how we hold customer funds.”
“We’ve never issued an exchange token,” Armstong added, referring to the native token of the FTX exchange that serves as collateral.
Price Action: FTX is trading at $5.34, down 75.74% in the last 24 hours, according to data from Benzinga Pro.
Photo by TechCrunch on Flickr
Image and article originally from www.benzinga.com. Read the original article here.