CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

COIN stock price hit despite Coinbase ‘seeing inflows’ after FTX collapse: Armstrong

By Daniela Ešnerová

17:32, 9 November 2022

A display with Coinbase (COIN) logo
Coinbase saw “good inflows” and “increased activity,” COIN CEO Brian Armstrong said. -- Shutterstock.

Coinbase (COIN) shares felt the knockout effect of the cryptocurrency market crash, despite the fact that the world’s biggest publicly-listed crypto platform actually benefited from the struggles of its competitor, FTX, which had sparked the market rout. 

Coinbase’s chief executive, Brian Armstrong, told Bloomberg that his company “definitely [saw] increased activity” and “good inflows and activity on the platform” as investors rushed to transfer their funds out of the embattled FTX.

But at the time of writing COIN shares were down 8.5% over the last 24 hours of trading.

What is your sentiment on BTC/USD?

60129.60
Bullish
or
Bearish
Vote to see Traders sentiment!

Coinbase Global Inc (COIN) share price chart 

FTX exodus, Coinbase’s inflows

The cryptocurrency market dived a staggering 16.5% over the last 24 hours, and bitcoin (BTC) sank to a two-year low after FTX declared it did not have enough liquidity to satisfy its clients’ withdrawals.

BTC/USD

60,129.60 Price
+2.410% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.54 Price
-1.670% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BCH/USD

370.95 Price
-1.690% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

ETH/USD

3,199.58 Price
+0.980% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

The troubles for FTX started last week when rumours of its insolvency began spreading and investors rushed to get their funds from the platform. While the withdrawal influx turned out to be disastrous for FTX, its competitors benefited from the troubles.

Another sector behemoth, Binance, offered to help FTX with liquidity after the two signed a non-binding agreement that Binance would fully acquire FTX on Tuesday 8 November. However, Binance is now reportedly leaning not to go ahead with the agreement after examining FTX’s books, according to CoinDesk.

Armstrong clarified Coinbase was not interested in acquiring FTX’s US subsidiary, FTX.US, in the interview. Armstrong told Bloomberg that “there’s reasons why that would not make sense” but said he is not “at liberty to share the details right now” and will let other people reveal the information “if and when they are ready”.

Bitcoin (BTC) to US Dollar

Markets in this article

COIN
Coinbase Global Inc (Extended Hours)
218.05 USD
2.85 +1.330%
BTC/USD
Bitcoin / USD
60129.60 USD
1414.15 +2.410%

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading