With Coinbase’s stock at an all-time low, CEO Brian Armstrong sent a note to employees assuring them that, unlike other struggling or bankrupt crypto exchanges, his firm will survive.
“This is our time to shine,” Armstrong said in an email acquired by The Block. “It wasn’t always easy, as we witnessed rivals break the rules and skyrocket in value and media attention.”
Armstrong also warned workers to be “ready to support” consumers in the face of market turbulence, noting “huge withdrawals occurring on Binance” as a possible contributing reason.
The 39-year-old CEO also wanted to remind employees that Coinbase has no significant exposure to competitor Binance, securely keeps client funds, and has $5 billion on its balance sheet. Coinbase shares plummeted below $39 per share on Tuesday, marking an all-time low.
The remarks follow weeks of instability caused by liquidity uncertainty and crises, as well as bankruptcies and unemployment caused by the collapse of multibillion-dollar cryptocurrency exchange FTX.
Since FTX clients requesting withdrawals led to the exchange’s demise, the industry has been on high alert. According to Simon Cousaert, director of analytics at The Block, Binance, the world’s biggest cryptocurrency trading platform by daily volume, has experienced a net outflow of almost $2 billion in different crypto assets since Monday.
Binance claims to have over $60 billion in assets across all of its wallets. Binance’s BNB cryptocurrency fell 2.1% today after the business began USDC withdrawal requests just after 12:00 EST. According to Binance CEO Changpeng Zhao, the exchange briefly halted withdrawals owing to insufficient platform reserves.