--- title: "Coinbase May Be in Real Serious Trouble Now" description: "Coinbase, the second largest cryptocurrency exchange by trading volume, is feeling the pressure following the collapse of rival exchange FTX." date: "2022-11-23" modified: "2022-11-23" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/coinbase-serious-trouble" categories: - "Blockchain" - "Future Society" tags: - "bitcoin" - "coinbase" - "cryptocurrency exchanges" - "the digest" --- # Coinbase May Be in Real Serious Trouble Now ![Coinbase, the second largest cryptocurrency exchange by trading volume, is feeling the pressure following the collapse of rival exchange FTX.]() *\Image: Getty Images/Futurism\* ## House of Cards Coinbase, the [second]() largest cryptocurrency exchange by trading volume, is really feeling the pressure following the [collapse]() of rival exchange FTX. The company's shares hit astonishing lows this week, sliding a whopping [nine percent]() on Monday alone. Major cryptocurrencies including Bitcoin and Ether have also tumbled, with the former hitting two-year lows this week. Coinbase's shares haven't been this low since April 2021, marking the latest fallout of the ongoing cryptocurrency crisis, [*CNBC* reports](). Over that same period, the company's valuation has crashed from a market cap of over $85 billion to below $10 billion. ## Sending Ripples It all casts the future of the crypto industry into doubt. The company is already coping with [major losses]() and was forced to [cut its workforce by 18 percent]() this summer. The news also comes after now bankrupt rival exchange FTX imploded in spectacular fashion, wiping out a $32 billion valuation in a matter of days. The collapse sent ripples [throughout the industry](), with rival exchange BlockFi, which is reportedly [preparing for a potential bankruptcy filing](), poised to [follow suit](). Coinbase's leadership has been in damage control mode, trying to calm investors. CEO Brian Armstrong maintained in an [op-ed]() published by *CNBC* days after FTX's collapse that the exchange does not have "any material exposure to FTX." "It’s stressful any time there is potential for customer loss in our industry, and a lot of people are losing a lot of money as a result of FTX’s struggles," he wrote. ## Fallout Immunity Analysts, however, are wary of another crypto disaster. "We feel confident that Coin is not 'another FTX,'" analyst Jason Kupferberg wrote in a note, as [quoted by *Bloomberg*](). "But that does not make them immune from the broader fallout within the crypto ecosystem." One major question: how low is the cryptocurrency industry prepared to go? Crypto lender Genesis, faced with the possibility of a bankruptcy filing, approached Binance for a bailout this week, [*The Wall Street Journal* reports](). Binance, tellingly, chose not to invest. **READ MORE:** [Coinbase shares tumble as bitcoin slide continues, investors fear contagion from FTX collapse]() \[*CNBC*\] **More on Coinbase:** *[Coinbase Reportedly Under Investigation by the SEC]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()