Coinbase’s Founder Brian Armstrong’s wealth lost in thin air in the crypto market crash

Coinbase’s founder Brian Armstrong, seriously affected by Crypto market crash.

On Thursday, May 12, Crypto Market crashed. The crash was humongous in terms of the money lost. The crash impacted not only the investors, but also the exchanges dealing in the crypto currencies. Brian Armstrong, the founder of Coinbase also experienced the heat of the crash. His networth took a down road from $13.7 Billion to $2.2 Billion after the crash. Coinbase being one of the most popular exchange to deal in crypto currencies in US, lost its share value, lost many of its investors and players. The two major crypto currencies that coinbase dealt in are Bitcoins and Ethereum. Both the crypto currencies fell to their lowest value during the market crash. That was a great opportunity for coinbase bot users.

Fears of Bankruptcy.

Coinbase’s stock got down by almost 75% this year and is trading below 85% than its all time high. This low is definitely going to create doubts among the investors about the viability of the exchange and about the viability of the shares. The talks of Coinbase’s bankruptcy are going around the market, which even worsens the situation for Coinbase. Also, the new SEC rules that have been set up where in Coinebase has to mention the affects of bankruptcy makes the deal even more scary for the investors.

“In the event of bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings, and such customers could be treated as our general unsecured creditor,” the official stated, implying that if coinbase goes bankrupt, investors will not be able to claim their funds.

CEO Brian Armstrong’s assurance.

Armstrong in his tweets tried to calm down the panic that was struck around coinbase. He told that, it was mandatory for Coinbase to mention the terms about bankruptcy which was the new rule set out by SEC and that Coinbase was not bankrupt. He also said that, the funds of the investors are safe with coinbase and explained that the exchange was no way near facing bankruptcy.

Coinbase’s journey until the crash.

Last year, Coinbase went public by listing its share on the Nasdaq. The value of the exchange rose to $100 billion in no time. But as the market crashed this week, the value of the company came down to $15 billion. The loss in value was more than 60% which demonstrates to us, how lethal the market crash has been. Will the share value of coinbase go up again or not? We have to wait and watch what happens with the crypto market, because crypto market is directly influencing the shares of the coinbase.