Coinbase CEO Brian Armstrong argued on Tuesday that his exchange isn’t vulnerable to the sort of fallout suffered by FTX this week.
He said the “event” surrounding FTX appears to stem from risky business practices that Coinbase does not engage in.
Coinbase’s Business Model
Armstrong began by expressing sympathy for everyone involved in the FTX situation – particularly those customers who have potentially lost funds. Early on Tuesday, FTX appeared to have stopped processing withdrawals for hours, and on-chain data shows that is still the case.
FTX and its CEO, Sam Bankman-Fried maintained on Twitter beforehand that the company’s assets were “fine,” and that its withdrawal queue was returning to more “reasonable levels.” However, the CEO confirmed the following day that FTX was caught in a “liquidity crunch” from overwhelming withdrawal requests, and needed Binance’s support to navigate it to protect customer funds.
“This event appears to be the result
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