- The cryptocurrency market as a whole is experiencing a bad week.
- The outcome was yet another jab at the crypto sector from Nithin Kamath.
Co-founder of Zerodha Nithin Kamath has warned Indian investors against the prospect of Coinbase Global, a US cryptocurrency exchange. Coinbase, the biggest cryptocurrency exchange in the United States, had it’s stock fall 78 percent since its IPO in April 2021. (IPO). This Monday, the cryptocurrency exchange announced a loss for the first quarter, with sales down 27% from a year earlier and short of projections. Coinbase recorded a net loss of $430 million in the first quarter, or $1.98 per share, due to decreased revenue and active users.
Crypto With Exchanges Carry a Risk
The outcome was yet another jab at the crypto sector from Nithin Kamath, who stated that client money might be in danger if Coinbase went bankrupt. In his words, “crypto with exchanges carry a risk,” he cautioned Indian crypto investors about Coinbase’s steep decline.
Kamath said in a tweet:
“Coinbase latest filing: Customer assets could be at risk in case of bankruptcy. Indian crypto investors on exchanges also need to be aware of this. Unlike the stock market where stocks are held in a demat with a depository & have no broker risk, crypto with exchanges carry a risk.”
The cryptocurrency market as a whole is experiencing a bad week, and that includes Coinbase Global. Coinbase announced a first-quarter financial loss of $430 million, or $1.98 per share, on falling revenue and active users. As trade volumes dropped and the number of people who log in at least once a month dropped by 19 percent from the previous quarter, revenue dropped.
This is not a bankruptcy petition, but the largest US crypto exchange used the term in a regulatory filing, reminding its consumers of how terrible things may become if Coinbase ever goes into financial difficulties.
