Coinbase Steps Up As FTX Retreats: A New Era In Crypto (2024)

FAQs

Coinbase Steps Up As FTX Retreats: A New Era In Crypto? ›

Former Contributor. The collapse of cryptocurrency exchange FTX has sent shockwaves through the market, raising questions about the stability and safety of the broader cryptocurrency ecosystem.

FTX will return money to most customers less than 2 years after catastrophic crypto collapse. FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that.

“Coinbase is in a better position today than really any other point as a public company,” said Needham & Co. analyst John Todaro, adding that 2022 and 2023 have been “shakeout years” for the industry. “Those who survived are going to come out of that stronger. And Coinbase is one that survived.”

FTX Token (FTT) is not tradable on Coinbase.

Coinbase , MicroStrategy and Riot Platforms surged Monday as investors piled into crypto companies following bitcoin's rally to a two-week high.

"First, the assets held on the exchange will be sold to cover debts to creditors and legal fees," explains Nick Saponaro, founder and chief executive officer of crypto payment platform, Divi Labs. "Only then does the user get paid. That's if there's anything left."

Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago. FTX, which filed for bankruptcy protection in November 2022, said in a court filing Tuesday that between $14.5 billion and $16.3 billion would be available for distribution.

Because it is US-based, publicly-traded, and is on the cutting edge of crypto security solutions, Coinbase consistently ranks as the safest crypto exchange in the world. That's why it's trusted by more than 100 million crypto investors.

It's natural to wonder whether Coinbase is safe, especially if you are investing a lot. Plus, it's still a relatively new platform. While Coinbase is generally a secure platform and has security measures such as two-factor authentication, it's not impervious to attacks.

The largest US digital-asset trading platform is forecast to have swung back to a profit from a loss in the year-earlier period, with trading volume and mobile-app downloads surging during a resurgence in demand that was driven by the introduction of US spot Bitcoin exchange-traded funds.

What is the negative news about Coinbase? ›

Key Takeaways. Coinbase is suing the Securities and Exchange Commission for not complying with its requests to disclose past crypto probes. The crypto exchange, which claims the SEC has failed to provide regulatory guidance, is also suing the Federal Deposit Insurance Corp.

Yes. Despite some recent security issues, using Coinbase is a relatively safe way to trade cryptocurrencies. Coinbase is the world's largest publicly traded crypto exchange, where investors can trade over 240 digital currencies.

Coinbase has a clear approach to transparency, risk management, and consumer protection, as outlined in a recent blog post by CFO Alesia Hass. Here's the TLDR. Coinbase has very little exposure to FTX and our customers are not in any direct danger of liquidity or credit risk.

Coinbase Global has a consensus rating of Moderate Buy which is based on 7 buy ratings, 7 hold ratings and 1 sell ratings.

In light of the SEC's lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time*.

With about $16 billion in recovered funds, FTX customers can expect to be repaid 'in full, with interest.' However, there is one, major caveat: Their repayments are based on a bitcoin price of $16,871.

FTX has developed a structured repayment plan approved by the bankruptcy court. The plan divides assets into distinct pools: one for FTX.com customers, one for U.S. customers, and a general pool for other creditors. According to the amended plan, FTX aims to repay up to 90% of the available assets to its customers.

As a priority client, you can now undergo the withdrawal process for your assets on the FTX platform and deposit them directly into your wallet, eliminating any waiting period and court outcomes.”

Distributions for BlockFi clients who were placed or opted in to the Convenience Class commenced in February 2024, and are currently ongoing. Convenience Class participants are entitled to a 50% distribution on allowed claims, up to $1,500. Distributions will be made in USD or CAD, depending on your location.