Coinbase Amasses $4 Billion, Ready for Possible Crypto Scrutiny and Bearish Market
Popular crypto exchange Coinbase has stated that it has amassed about $4 billion in cash ready for anything that would negatively affect the crypto market. The popular exchange said it’s ready to keep the boat sailing in the advent of any eventuality that would happen in the nearest future, as it envisions tighter regulations from the SEC. According to Coinbase, the $4 would be enough to keep the company afloat and ensure that services wouldn’t be affected.
Coinbase Predicts Tougher Regulations Ahead
CFO Alesia Hass revealed in an interview that the company is prepared to face anything in the advent of stricter regulations, cyber-attacks, or even a long-term bearish market. Hass said the team wants to make sure that cash reserves are sufficient enough to maintain the running of the exchange. Crypto users and investors need not be afraid whenever the D-day arrives, as the reserve would sustain the platform’s growth.
The CFO further added that the platform once witnessed “crypto winters” where financing was challenging to get, resulting in the loss of several employees. The crypto eco-space is a volatile industry, and there would be days when the market won’t go according to plan. He advised that everyone be calm and play down the rising tension.
Reports are circulating that the SEC will begin a clampdown on the crypto industry, something similar to that already happening in China, but might not be that deadly. Earlier this month, SEC’s Gensler suggested implementing laws to cut down money laundering cases and tax circumventions in the decentralized space. Experts are saying that he could extend the clampdown to exchanges.
Coinbase Recorded Massive Profits for Q2
Coinbase profited handsomely, according to Q2 reports published by the exchange. The platform recorded a net profit of $1.6 million, up by a whopping 4900% from last year. If the platform continues to record this kind of profit, it will continue to hoard more funds in preparedness for the future. However, the exchange and others might not handle the heat that the government would bring on them.
Would $4 billion be enough to sustain Coinbase if things go south? It is a question that various investors have asked themselves and are still asking. Even though Coinbase has assured them the situation wouldn’t be as bad as it seems, there are incessant worries that the cryptocurrency world might be approaching its dark days. Notwithstanding, Coinbase’s stockpile could still prove vital.
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