Exchanges stability is at risk

The fall that the world of cryptocurrencies is also being reflected in the value of the most important exchanges in the world

The fall that the prices of cryptocurrencies are experiencing in recent weeks endangers the stability of the trading platforms for these assets, given that the income of some depends on this fluctuation.

An example of this is the hard fall that Coinbase is experiencing on the stock market. Currently, the titles are exchanged at a price of around 70 dollars, compared to 368 dollars that it reached in November, coinciding with the highs of Bitcoin and Ethereum.

“In the event of bankruptcy, the crypto assets that we have in custody owned by our clients could be subject to bankruptcy proceedings and those users could be treated as unsecured creditors,” Coinbase said in a document submitted to the United States Securities Market Commission (SEC).

The platform recognizes that this fact could make its investors consider its custody services more risky and less attractive, which could also impact its business, its operating results and financial conditions.

In the document submitted to the SEC, Coinbase emphasizes the dependence on the price of cryptocurrencies in its operating results, which can fluctuate from one quarter to another given the volatility of this type of asset.

Specifically, the platform adds in that report that a “significant” part of its income derives from the demand for the two most important cryptocurrencies, bitcoin and ethereum. “If the demand for these crypto assets declines and is not replaced by new cryptocurrencies, our business, operating results and financial conditions could be affected,” it says.

K. Tovar

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Source: Elpais

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