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The Zero Exposure of Coinbase to Genesis Trading is Clarified

CJ - Cryptocurrency Enthusiast 

  • By publishing a notification, Coinbase made it clear that they had a robust crypto asset management strategy and capital preservation

  • The announcement was made to emphasize how Coinbase was unique from other cryptocurrency exchange platforms

  • Coinbase further stated that they will continue to strive for responsible crypto market investment economic growth

To stress that they have a solid risk management program and a robust capital position, the cryptocurrency exchange Coinbase issued a public declaration through Twitter. The action was taken to protect the platform's interest in Coinbase consumers.

Following the FTX fall and worries about a liquidity shortage, Coinbase made the decision to publish a warning to reiterate how the exchange was unique from other platforms. The exchange platform first declared that they had no exposure to Genesis Trading.

"Coinbase and our clients are not directly at risk of liquidity or credit risk. We have very little exposure to FTX and none to its token, FTT, whether or not the Binance FTX transaction closes.”

According to reports, Coinbase presently has $15 million in deposits on FTX to support customer transactions and business operations. The cryptocurrency trading platform also affirmed that they had no financial ties to FTX or Alameda Research. Coinbase further stated that it has been open about its performance and balance sheet soundness. They also manage risk for their clients and others in an efficient and responsible manner.

Coinbase also underlined the significance of regulatory norms: "Congress has to set clear, national laws for cryptocurrency – and make those rules functional so firms aren't rewarded for developing outside the U.S.," they continued. Because of this, Coinbase has pushed for regulation from the start.

In closing the notice, Coinbase stated that they will continue to make every effort to safeguard its clients while trying to develop the crypto economy in a secure, responsible manner.

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