As a result of the fed’s interest rate hikes and contractions, the global encrypted currency has recently collapsed, placing the market in a “frightful” situation。
On may 11th, bitcoin fell $28,000
On 11 may, during the north american trading period, bitcoin fell again, once more than 10 per cent in the daytime and once lost $28,000 in the plate. To date, the price of bitcoin has fallen by more than 50 per cent over last november's high. As a result of the fall of bitcoin, other encrypted currencies are almost entirely low. As of 8 a. M. Beijing time on 12 december, $449 million (approximately rmb 2,854 million) of the past 24 hours of encrypted money had been wiped out. In the past 24 hours, 16,265 persons have exploded。
Coinb, the largest encrypted currency trading platform in the united statesThe fact that the information “will confiscate all the user's encrypted currency in the event of bankruptcy” was also blown off the investor。
According to foreign media 11th, local time 10th, coinbThe latest revenue report released by the base showed losses of $430 million in the first quarter, a 19 per cent decline in monthly users. However, the most striking aspect of this report is not these “unsavory” data, but a “relevant to the use of coinb”This is a service risk update。
CoinbIn its report to the united states securities and exchange commission (sec), case indicated that it currently held $25. 6 billion in statutory and encrypted currency on behalf of its clients. According to its official network, the company has over 98 million certified users. However, the report states that, once the company has declared bankruptcy, “encrypted assets that we hold for our clients may be subject to insolvency proceedings”. The report shows that after the company went bankrupt, coinbAs users will become “general unsecured creditors”, this means that all their encrypted money and funds on the platform will be considered by the insolvency representative as coinbAs well as being entitled to claim coinb's property during the proceedingsPlease, any particular property。
CoinbThe founder and ceo brian armstrong, who stated on social media that there was no risk that the trading platform would go bankrupt, “your funds are secure, as always”. He also explained that the information had been disclosed in order to comply with the new requirements of the united states securities and exchange commission (sec) rules for listed companies holding encrypted currency assets on behalf of others。
This new provision, section 121 of the united states securities and exchange commission (sec) importance bulletin (staff accoating bullet 121), requires encrypted monetary assets and liabilities of customers to be included on the balance sheet. At the same time, however, he admitted that “the court may, although it is unlikely, decide to treat the customer's assets as part of the company in insolvency proceedings, even if this harms the consumer”
Armstrong also publicly apologized to the shareholders on the matter, stating that there had been no proactive communication when disclosing information at increased risk. At the same time, however, he acknowledged that encrypted assets were not safe in the event of insolvency, which also highlighted the significant difference between the storage of funds on block-chain exchanges and the storage of cash in traditional banks. Regulators have long warned that these platforms lack built-in regulation and investor protection mechanisms in traditional financial services。
Foreign media reports indicate that, in previous propaganda on block chains and encrypted currency, it has been emphasized that individual investor ownership of encrypted currency is “unchangeable and absolute” and that this is one of the most critical “sale points” of encrypted currency. However, when the user is in coinbWhen an account is opened and encrypted money is purchased, they usually store it in coinbThis means that the individual user has “released at least part of its control over its own funds”。
Encrypted wallet access is controlled by a key, which is usually a long list of " very difficult to remember " characters. If you forget or lose a key, no one can access the encrypted currency in your wallet. And coinbOn a third-party trading platform such as case, the key to the digital wallet is in the hands of the company, and users can enter their wallet using traditional simple passwords. This means that, at this critical juncture, user access to these assets is ultimately in the hands of coinbPlease。
It was reported that the incident once again highlighted the significant difference between the storage of funds on block chain trading platforms and the storage of cash in traditional banks. CoinbAfter the issuance of this latest report, the stock price fell by 30 per cent on wednesdays. To date, the company's share price has fallen by 80 per cent since its listing in nasdaq in april 2021。
