Coinbase CEO Brian Armstrong advised workers to be “prepared to assist” clients during volatile market conditions, noting the significant number of Binance users seeking withdrawals as a contributing cause.
With Coinbase’s stock at an all-time low, CEO Brian Armstrong addressed a note to employees assuring them that, unlike other failing or defunct cryptocurrency exchanges, his firm will endure.
Armstrong stated, “This is our opportunity to shine” in a message acquired by The Block. “It was not always simple, as we saw rivals circumventing the regulations and skyrocketing in value and media attention.”
Armstrong also asked personnel to be “prepared to support” consumers during periods of market volatility, noting “huge withdrawals occurring on Binance” as a possible contributing reason.
The 39-year-old CEO also wanted to remind employees that Coinbase has no substantial exposure to competitor Binance, maintains customer assets securely, and has a $5 billion balance sheet. Tuesday’s trading session ended with Coinbase shares trading below $39 per share, an all-time low.
The remarks follow weeks of instability caused by liquidity uncertainty and crises, bankruptcies, and layoffs precipitated by the collapse of the multibillion-dollar FTX cryptocurrency exchange.
Since clients’ withdrawal requests led to the collapse of FTX, the industry has been on high alert. Simon Cousaert, director of analytics at The Block, believes that Binance, the biggest cryptocurrency trading platform by daily volume, has seen a net outflow of approximately $2 billion in different crypto assets since Monday.
Binance claims that its wallets contain more than $60 billion worth of assets. The BNB cryptocurrency fell 2.1% today when Binance reopened USDC withdrawal requests at noon EST. According to Binance CEO Changpeng Zhao, the exchange briefly suspended withdrawal processing owing to insufficient platform reserves.
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