Coinbase Dismisses Bankruptcy Rumors

Coinbase Dismisses Bankruptcy Rumors

 The decline in shares that occurred on the cryptocurrency exchange platform from the United States, Coinbase, made a number of parties speculate that the company is currently experiencing bankruptcy. The circulation of these rumors attracted the attention of a number of parties including the CEO of Coinbase Brian Armstrong, through a tweet on his Twitter account, Armstrong dismissed the rumors.

 He also explained that the condition of the company is still safe, both in terms of operations and funds. "We have no risk of bankruptcy," Armstrong wrote on Twitter. Reporting from Reuters, the emergence of news related to Coinbase's bankruptcy began when the crypto company was known to be filing a report file with the US Securities and Exchange Commission (SEC). Armstrong explained that the contents of the file were only SEC requirements. In addition to the issue related to the SEC report, Armstrong's tweet on his Twitter account also strengthened investor speculation.

 “In the event of bankruptcy, crypto assets held on Coinbase can be considered as company assets in bankruptcy income, and users can be considered unsecured creditors. These creditors will be paid last in the event of bankruptcy and will be the last to be paid if cash remains," Armstrong tweeted. This tweet further clarifies the circulation of these rumors. Although the company firmly denied the circulation of the confusion. However, the circulation of information related to the use of customer funds to cover the company's bankruptcy has made a number of investors angry and disappointed because they feel unfair with Coinbase's attitude. 

In fact, this statement has led investors to make mass withdrawals of crypto assets on the Coinbase service. Anticipating the spread of panic among investors, Armstrong finally apologized to the public regarding this condition. It also ensures that Coinbase will continue to develop its security quality, especially in terms of securing funds in order to provide the best service for its users. For information, Coinbase's share in global trading over the past few months has continued to decline to reach 27 percent in the first quarter of 2022. The decline in shares was the result of sluggish transaction volume for users and bearishness for all cryptocurrencies.

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