Consumers are legitimately worried about the financial status of firms and businesses in the aftermath of the collapse of FTX. Changpeng Zhao, CEO of Binance, shared advice with other centralized exchanges on how to maintain a healthy company and gain users’ trust. CZ encouraged them to be transparent to their users, including sharing proof of assets.
Brian Armstrong, CEO of Coinbase, published a shareholder letter publicly via his Twitter handle yesterday. He stated that Coinbase is a publicly traded company and that the company’s financial status is also released to the public for transparency and accountability.
The letter reveals the company’s crypto assets, which include $39.9 billion worth of Bitcoin, $24.1 billion worth of Ethereum, and other crypto assets worth $31.1 billion.
Coinbase’s financials were impacted by the crypto bear market and macroeconomic factors. The impact is evident in the company’s Q3 revenue, which was 44% lower than the previous quarter. Nevertheless, subscription services offered by Coinbase boosted the gap by 43%.
Coinbase noticed users reduced trading activities and preferred to hodl assets due to low volatility and declining prices. This indicates that customers still believe in the long-term profitability of crypto assets.
The company believes that hostile regulation will drive cryptocurrency developers and participants out of the industry. Instead, clear rules should be established for digital assets and commodities so that consumers are aware of the implications ahead of time.
The document further reads:
“We will continue to advocate for clear regulations in the US and believe strongly that effective crypto regulations are not only good for our business, but also for the welfare of society. The US economy benefits from crypto jobs and projects that are being fueled by Web3 innovation, which Coinbase is committed to protecting. US national security and its ability to combat crime are strengthened by a strong crypto economy; it’s easier to stop bad actors when crypto assets are located in the US. But in order to reap those benefits, the regulatory environment must be hospitable toward crypto.”
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