As Coinbase moved swiftly to allay users’ fears, it was hacked by its recently released Q1 2022 report. Popular Bitcoin and altcoin exchange Coinbase, which recently released its financial report for the first quarter of 2022, has come under intense scrutiny by the crypto community. One of the commentators on the stock market was the famous analyst Peter Brandt.
Coinbase’s report drew reactions from users
As we have also reported as Kriptokoin.com, Coinbase has published its financial report for the first quarter of 2022, and it is the first $430 million since the company went public in April 2021. recorded net loss. The report showed that Coinbase posted a 27 percent net loss in Q1 earnings this year, compared to $1.17 billion, up from $1.6 billion recorded in the first quarter of 2021. Similarly, Coinbase monthly transacting users fell to 9.2 million users, down from 11.4 million users in the last quarter. After that, the stock value fell from $73 to $61.
The negative performance of the overall cryptocurrency market since the beginning of the year has greatly contributed to Coinbase’s recent net loss; however, critics still took time to criticize the stock market after its net loss. Coinbase’s first-quarter net loss of 27 percent wasn’t the only thing that piqued many people’s interest. According to the statement made by Coinbase in its first quarter 2022 financial report, the exchange stated that if it goes bankrupt after its losses, it will keep customers’ assets as its own property and treat them as general unsecured creditors.
Comment came from Peter Brandt, who is famous for Bitcoin predictions
In this case, experienced analyst Peter Brandt was one of the names who condemned the stock market. Brandt drew attention to the report circulating on Twitter, asking Coinbase customers to close their accounts on the exchange and “get away.” He argued that if Coinbase went bankrupt, users’ Bitcoin would no longer belong to them. Meanwhile, Coinbase CEO Brian Armstrong came to the defense of the exchange, explaining how the San Francisco-based trading platform holds users’ crypto assets.
Armstrong assured the public that their funds are safe as always and added that the popular trading platform is not at risk of bankruptcy. The CEO of Coinbase added that the disclosure relates to a new SEC requirement called SAB 121, which requires disclosure of publicly traded companies holding cryptocurrencies on behalf of third parties.