Coinbase guarantees customers that their assets are safe

https://thecryptostar.co/?p=18579

In the midst of a liquidity crisis, Coinbase guarantees customers that their assets are safe

According to Coinbase, regulatory compliance and asset security have always piqued its interest.

The American exchange Coinbase has made an effort to allay consumer concerns despite the mounting anxiety brought on by the recent liquidity issues. To this purpose, the company explained in a blog post how its operations continue in an ethical manner.

Customers Are Not Directly at Risk for Liquidity, according to Coinbase
Coinbase started off the blog post by stating that it has always taken asset security and regulatory compliance very seriously. It thinks that the reason its customers are currently safe from all types of credit threats is because it has an interest in both.

The information surfaced after massive exchange FTX declared bankruptcy under chapter 11 last week. In the meantime, it is expected that other businesses that may have been exposed to large enterprises like FTX’s failure in this way would experience liquidity problems. But in this instance, Coinbase maintains that its exposure to FTX is minimal. According to the blog post, it is actually not available to FTX’s token, the FTT. According to the US-based exchange, FTX currently has deposits worth $15 million. It does not, however, owe any money to FTX, and it has no dealings with Alameda Research, its trading division.

Coinbase has bragged about its financial stability in an effort to reassure its customers further. According to the exchange, a sizable amount of its assets are held in USD.

We had $5.6 billion in total resources, $5 billion of which were cash and cash equivalents, at the end of the third quarter.

Additionally, Coinbase talked about its risk management team and how much it has invested in it. It claims that the team’s members have a plethora of experience working in many types of economies. And maintains that they have created a successful method for managing both credit and liquidity concerns.

Overall, Coinbase thinks that the necessity of strict and transparent regulatory requirements has been amply demonstrated. To make sure that the assets of its clients are safe, it claims to have paid attention to this and will keep doing so.