Thursday, April 18, 2024

Stablecoins worth $248 million leaving Coinbase, community disputes exchange liquidity.

Last week rumors started that Coinbase is facing liquidity issues after several emails were leaked. The leaked emails also suggested that the company might be shutting its affiliate program and also alarmed many.

Kurt Wickert Jr from Coingeek said all these are signs of upcoming liquidity and the platform could be in danger. The liquidity crisis has been looming in the crypto space with Celsius recently filing for bankruptcy.

To add salt to the injury. 50% of stablecoins left the Coinbase Pro exchange on July 15th. Cumulatively they are worth $248 million and the outflow suggests that impending doom is coming. Although stablecoins have left other platforms too, Binance only lost 1% of stablecoins over the same time period.

With Coinbase having a significantly higher outflow than its peers, there have been speculations that the company might be in trouble. Even though the value of stablecoins peaked in January 2022 at $1.2 billion on Coinbase, Binance has only seen an upward rise.

Although the rumors have spread far and wide, the community is still defending Coinbase and saying nothing can be said for sure right now. One of the developers of the affiliate program said that it is not in jeopardy. NJ Skoberne and Dan Held commented on the rumors saying that no such thing is happening.

Later on Brian Armstrong the co-founder of Coinbase also dispelled the rumor and said that the company is only adjusting to these trying times. With most of the cryptocurrencies taking a hit in 2022 due to various reasons, it is the best time to hold onto your assets.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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