The contagion of the FTX token collapse has spread across the entire crypto market. On Tuesday, November 8, the broader crypto market lost nearly $100 billion tanking by 10%. The Coinbase (NASDAQ: COIN) stock also collapsed by 10% ending Tuesday’s trading session at $50.
Binance announced the buyout of the FTX exchange following a plea from Sam Bankman-Fried. However, this buyout is only for the non-U.S. businesses of FTX.
At the same time, Coinbase chief Brian Armstrong also said that he’s not interested in making a Binance-like move, distancing himself from any potential acquisition of FTX U.S. In an interview with Bloomberg television, Armstrong said:
“We’re not investing customer funds. We’re not doing market making or engaged in any kind of complex arrangement with other parties that we own.”
Note that Binance’s deal with FTX is still not closed and both companies have to do due diligence on their end. Coinbase CEO added that if the Binance deal falls through, it would mean that FTX customers could be taking some losses. “That’s a not a good thing for anybody,” he said.
Coinbase Chief on Crypto Regulations
Coinbase chief Armstrong said that they have been seeing higher customer activity ever since the FTX concerns unraveled. He also added that as customers take the route of less regulated, offshore exchanges, they are at a greater risk.
Armstrong also added that not buying FTX U.S. would make sense for them, however, didn’t provide enough details regarding the same. But he added that the financial troubles faced by FTX would taint regulators’ view on the crypto industry.
As we know, SBF has been lobbying lawmakers in Washington D.C. It is also one of the major donors to America’s democratic party. “There’s probably a lot of people in DC right now kind of scratching their head,” Armstrong said.
Although the COIN stock tanked majorly on Tuesday, Cathie Woods Ark Invest filled their bags. Ark Invest purchased 420,000 COIN shares worth $21 million on Tuesday. The COIN stock is now trading at an 80% discount year-to-date.
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