Frightening Crypto Forecast From Coinbase CEO: The Crash Is Not Over!

Brian Armstrong, CEO of Coinbase, one of the world’s largest Bitcoin and crypto exchanges, warns that the FTX-Alameda effect may continue in the coming months.

Coinbase CEO says crypto winter will be prolonged

The cryptocurrency market has seen nearly $2 trillion wiped from its volume this year. Bitcoin price has slumped below $17,000 from $70,000 reached at the end of 2021. Similarly, Ethereum price has also seen massive sell-offs. This has caused serious problems for some of the biggest crypto companies.

Now, Coinbase CEO Brian Armstrong says we will continue to feel the effects of the upcoming FTX collapse. The developments in November, which you follow on Kriptokoin.com, became permanent with the official bankruptcy announcement on November 11.

In a new interview with Axios, Armstrong said, “I think we’re going to feel a little bit more of the effects of FTX. “But hopefully it will be over in the next few months or at most a quarter.” Also, the panic caused by FTX is on Bitcoin exchange Mt. Gox’s collapse in 2014:

After 18 months, people moved on, and after that no one asked me about it.

FTX bankruptcy undermines investors, companies and the market

The consequences of last month’s FTX crash have plunged some of the world’s biggest crypto companies into crisis. Fears persist that other major corporations and cryptocurrencies are on the verge of collapse. For example, crypto lending firm BlockFi went bankrupt with the collapse of FTX. Thus, it raised questions about how many other crypto companies could be suffering from FTX bankruptcy.

FTX was the latest in a string of high-profile bankruptcies during the year. In May, Terra LUNA and UST saw its algorithmic mechanism backfire due to bear market conditions. This bankruptcy was followed by the hedge fund Three Arrows Capital, as well as Voyager and Celsius.

In this environment, Coinbase’s stock price was falling along with the cryptocurrency market. The price of COIN has dropped almost 90% through 2022 as investors leave crypto exchanges. But Armstrong remains optimistic. He expresses his confidence in the stock market as follows:

The bull case for Coinbase is that we are the market leader in terms of trust and the largest exchange in the US. The market gives us very clear feedback that they want to work with reliable companies if they are to be central actors.

Coinbase launches recovery tool for accidentally sent ERC-20 tokens

In the recent move from the exchange, a new tool has been introduced for users sending cryptocurrencies to wrong addresses. In its December 15 announcement, Coinbase said that users who send any of the approximately 4,000 ERC-20 tokens to a Coinbase address will be able to recover their previously unrecoverable funds by providing “the Ethereum TXID for the transaction where the funds were lost, and the contract address of the lost asset.”