In the wake of recent news around cryptocurrency exchange FTX, not only has the crypto industry’s image taken a hit, but crypto-linked equities have reportedly lost $10 billion in value.
Many crypto-linked stocks tumbled this week as investors were rattled by the news of FTX’s troubles and then by Binance’s walking away from a potential deal to acquire the firm, Bloomberg reported Wednesday (Nov. 9).
As PYMNTS reported Wednesday, the collapse of the FTX-Binance deal highlighted shaky confidence in crypto, as gyrating crypto prices and various announcements from crypto firms about the safety of their own holdings have underscored the uncertainty and doubt that have become hallmarks of the crypto space.
Among the stocks that have been impacted by the news about FTX, Robinhood and Coinbase saw the greatest losses, with the former’s shares dropping 14% Wednesday and the latter’s dipping 9.5% to a record low.
Beyond the industry-wide turmoil, these companies were also impacted in specific ways. FTX had reportedly been considering an acquisition of Robinhood, while the news of FTX’s problems put a spotlight on challenges facing Coinbase, according to Bloomberg.
Reached for comment, a Coinbase spokesperson shared with PYMNTS a link to a thread on Twitter posted by Coinbase CEO Brian Armstrong in which he addressed the current situation with FTX, adding that Coinbase has no material exposure to FTX, FTT or Alameda, and that it is important to focus on factors that differentiate Coinbase.
“We decided early on to be the most trusted crypto company out there, and the events of the last 24 hours underscore why this has been so important,” Armstrong said in one of the tweets in the thread. “We’ll continue to work with regulators around the world and help build trusted and reliable products for the industry.”
12/ We decided early on to be the most trusted crypto company out there, and the events of the last 24 hours underscore why this has been so important. We’ll continue to work with regulators around the world and help build trusted and reliable products for the industry.
— Brian Armstrong (@brian_armstrong) November 8, 2022
Robinhood did not respond to PYMNTS’ request for a comment.
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