Skip to content
  • Privacy Policy
  • About Us
  • Contact us
  • Policy Page
nynewsbash

nynewsbash.com

Your Daily News Potion

  • Entertainment
  • Biography
  • Finance
  • News
  • Games
  • Sports
  • K-Drama
  • Anime
  • Toggle search form
Coinbase jumps 10%

Coinbase jumps 10% after saying it has no exposure to bankrupt crypto firms

Posted on July 21, 2022July 21, 2022 By Heena No Comments on Coinbase jumps 10% after saying it has no exposure to bankrupt crypto firms

Coinbase jumps 10% after saying it has no exposure to bankrupt crypto firms

Coinbase jumps 10%!

Source: cnbc.com 

Key Takeaways 

  • Coinbase said in a blog post that it had “no financing exposure” to collapsed crypto firms Celsius, Three Arrows Capital and Voyager Digital.
  • The firm did, however, make a “non-material” investment in Terraform Labs, the Singapore-based company behind failed stablecoin project Terra.
  • Shares of Coinbase climbed 10% on Wednesday. 
Coinbase jumps 10%

Coinbase said it had no counterparty exposure to several collapsed crypto firms. Thus, they were seeking to allay fears about the impact of a liquidity crisis in the industry on its business.

Coinbase “had no financing exposure” to Celsius, Three Arrows Capital and Voyager Digital, the company said in a blog post Wednesday. 

Each firm filed for bankruptcy protection after a plunge in digital token prices set off a cascade of liquidations in highly leveraged positions.

Shares of the company immediately climbed 10% following the statement.

“Many of these firms were overleveraged with short-term liabilities mismatched against longer duration illiquid assets,” the company said.

“We have not engaged in these types of risky lending practices and instead have focused on building our financing business with prudence and deliberate focus on the client,” it added.

While Coinbase denied any credit exposure to Celsius, 3AC and Voyager, it says it did make “non-material investments” in Terraform Labs, the Singapore-based company behind failed stablecoin project Terra, through its venture capital business.

The update is an attempt by Coinbase to reassure investors it won’t suffer the same fate as some of its peers. Since the start of 2022, the company’s stock has plunged roughly 70%. 

Now, the interest rate hikes by the Federal Reserve have shaken investors in both crypto and stocks.

The crypto market has been in a state of disarray ever since the demise of Terra, a so-called “algorithmic” stablecoin that tried to maintain a $1 value using code. 

This led to liquidity issues at Celsius and 3AC, two companies that made risky crypto gambles using borrowed funds.

As cryptocurrencies started falling this year, investors wanted to take their funds out of firms like Celsius and 3AC. But a drop in the value of the assets held by such companies meant they were unable to process those redemption requests. 

As a result, Celsius, Voyager and others halted withdrawals before eventually filing for bankruptcy protection.

Bitcoin climbed above the $24,000 mark Wednesday, for the first time in over a month, alongside a broad recovery in crypto prices. The world’s top digital coin is still down roughly 50% year to date.

Investors are hoping the Fed will be less aggressive than feared with an expected hike in interest rates next week.

Central banks are racing to tame runaway inflation with tighter monetary policy, but this has spooked stocks and other risky assets — crypto included — which benefited from a flood of stimulus during the Covid-19 pandemic. 

Stay connected with us for more updates!

Related

Finance Tags:Coinbase jumps 10%, coinbase pro coinbase stock bitcoin price coinbase news could coinbase go bust coinbase stock price prediction coinbase ipo reddit, coinmarketcap, How does Coinbase calculate percent change?, How much will Coinbase stock be in 2022?, Is Coinbase a good investment 2022?, Is Coinbase in financial trouble?, Is Coinbase stock expected to go up?, Was Coinbase overvalued?, What is the target price for Coinbase?, Why has Coinbase share price fallen?

Post navigation

Previous Post: Johnny Depp Tortured Leonardo Dicaprio in the 90s: Here’s what he did to the Titanic hero 
Next Post: The reason behind a mysterious trading surge in stocks like Berkshire Hathaway has been revealed

Related Posts

Top 7 Richest YouTubers in 2022 Top 7 Richest YouTubers in 2022 Finance
Stock futures fall in the US after Walmart cuts forecast, says inflation hit consumer spending Stock futures fall in the US after Walmart cuts forecast, says inflation hit consumer spending Finance
highest paid CEO in 2022 Top 7 Highest paid CEO in 2022 America | Salary of CEOs in United States Biography
Top 7 Richest Members in BTS: BTS Net Worth in 2022  Top 7 Richest Members in BTS: BTS Net Worth in 2022  Biography
The reason behind a mysterious trading surge in stocks like Berkshire Hathaway, The reason behind a mysterious trading surge in stocks like Berkshire Hathaway has been revealed Finance
Best Stocks to buy right now with high profits.  18 Best Stocks to buy now Finance

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • The Beast Must Die Season 2: Release date, Cast and Plot
  • Hacks season 3: Release date, Cast, Plot, Trailer, Spoilers, and more 
  • The Upshaws Season 3: Release date, Cast, Plot, Trailer, Spoilers, and more
  • We Are Lady Parts Season 2: Release date, Cast and Plot
  • Before We Die season 3: Release date, Cast, Plot, and Updates

Copyright © 2022 nynewsbash.com

Powered by PressBook Grid Blogs theme