Coinbase, the American cryptocurrency exchange platform recently revealed its financial reports for the first quarter of the year. The results were not very encouraging for its clients, since it was determined that the platform is practically bankrupt.
In the report provided to the United States stock market police, the company made it clear that users’ cryptocurrencies could be confiscated in the event of the platform going completely bankrupt. Faced with such a determination, Coinbase users are alarmed and it is not for less, they could lose everything if the company so wishes.
And it is that cryptocurrencies are not going through their best streak. In fact, Bitcoin, one of the most well-known digital currencies recently fell below $30,000. What kept Coinbase users calm is that, although digital currencies have been in a tailspin, the American platform had been able to maintain almost a year without going into that losing streak.
The company reportedly had net income of $1.17 billion, while last year it made a profit of $1.6 billion. The drop was similar in terms of transactions, which fell from 335 billion to 309 million dollars. Lastly, the number of monthly active users also decreased, going from 11.4 million to 9.2 million.
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Of course, the company does not take full blame, as it has justified the poor numbers with many other cryptocurrencies falling in value since the start of 2022. These market conditions had a direct impact on our Q1 results. But we have approached these market conditions with foresight and preparation, and remain more excited than ever about the future of cryptocurrencies,” Coinbase explained as reported on Phonandroid.
The report provided by the company reads “they could be considered assets subject to bankruptcy proceedings and clients could be treated as general unsecured creditors.” In other words, the company commented that creditors could view customer resources stored on the platform as being directly owned by Coinbase. Thus, if the company does go bankrupt, the seized cryptocurrencies would help pay off the debts.