Customers of the troubled crypto exchange began to look for new platforms for operations with digital assets

​Coinbase and Robinhood record an influx of new customers following FTX’s collapse

10.11.2022 - 14:00

183

3 min

What’s new? After the collapse of FTX, customers of the crypto exchange began looking for new platforms for operations with digital assets. For example, the Coinbase exchange and crypto broker Robinhood have recorded a significant influx of new users and an increase in trading volume over the past few days. Robinhood CEO Vlad Tenev in a conversation with Reuters noted that the past two days were “two biggest days of crypto inflows ever” in the company’s history, while Coinbase’s website and app temporarily went down due to an influx of customers.

Comment for Reuters

What else did the companies say? Tenev also noted that Robinhood is not directly related to FTX or trading firm Alameda Research. In May, the head of both companies, Sam Bankman-Fried, bought a 7,6% stake in Robinhood for $648 million. At the time, he also noted that he did not intend to influence the activities of the crypto broker.

Coinbase, for its part, faced a technical glitch on November 8 due to a large number of people wishing to register and an increase in the number of transactions. In particular, there were delays when registering and loading existing accounts. Later, the crypto exchange’s team assured that the malfunctions were fixed.

Source: Twitter.com

What is going on with FTX? The trading platform is facing bankruptcy due to an $8 billion shortfall in its budget. FTX’s liquidity problems came after Bankman-Fried tried to bail out Alameda. According to Reuters, he transferred at least $4 billion into the platform’s asset-backed funds, including native tokens FTT and Robinhood shares. Some of these funds were taken from FTX’s customer deposits.

In early November, it became known that most of Alameda’s assets were stored in FTT. After that, Binance began a complete liquidation of its positions in FTT, and later announced a takeover deal of FTX, as a result of which the exchange’s token plummeted by more than 70% and Bankman-Fried lost 93,6% of his fortune.

On November 9, Binance backed out of the FTX acquisition deal after due diligence.

To find out what implications await the crypto market as a result of FTX’s collapse, see GetBlock Magazine’s article.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy