Exit All Your Funds From Coinbase, It’s A Sinking Ship, Alerts “The Black Swan” Author
This week’s financial crisis has had far-reaching effects on the crypto market. Values of Bitcoin and other cryptocurrencies, including Cardano, Solana, XRP, and Dogecoin, have declined significantly since the start of the year, possibly by as much as 10%.
Recent reports that Coinbase’s CEO Brian Armstrong has sold off shares for $1.6 million (or more) have spooked investors even more, just as the market was starting to regain footing.
Coinbase is A “Sinking Ship”
By referring to coinbase coinbase [email protected] Centralised Exchange as a “sinking ship,” author Nassim Taleb of “The Black Swan” has recommended investors exit their holdings immediately.
In light of accusations that CEO brian armstrong brian armstrong Brian Armstrong is one of the most well-known figures in the crypto industry today. He is an American investor, entrepreneur, and business executive. He is the CEO of Coinbase. a cryptocurrency platform. He is also a sought-after crypto expert and is often invited to speak at conferences all over the globe. Armstrong has often mentioned in his interviews that his dream is to turn Coinbase into an all-in-one crypto platform where customers (both casual and institutional) can avail themselves of a wide range of products and services with the touch of a button. His initial professions included functioning as a developer for IBM and a specialist at Deloitte. In 2011, he joined Airbnb as a programmer and was presented with a payment system in each of the 190 nations Airbnb worked in at the time. EntrepreneurInvestorDeveloper/ProgrammerCrypto and Blockchain Expert sold shares of Coinbase for more than $1.6 million, renowned Lebanese-American statistician and author of “The Black Swan,” Nassim Nicholas Taleb, has recommended investors and users abandon the company.
The news that Armstrong allegedly sold 29,732 Class A Coinbase shares for $1,625,102 on November 11 has caused more worldwide shockwaves following the series of terrible mishaps on Satoshi Street. The details were disclosed in a filing submitted by Coinbase with the US Securities and Exchange Commission (SEC). Apparently, Armstrong has also converted Class B shares to Class A shares.
Taleb’s Piece Of Advice
Taleb regards this as a sign of looming danger surrounding the company, and he advises the general public not to invest in Coinbase till there is more clarity. The author claims that no CEO ever sells their shares, since it is unethical to do so in the eyes of the investors, unless and until the situation is critical.
His comments have instigated even more fear and panic among the market participants.
Taleb continued by saying that investors should take CEO stock sales very seriously because they may indicate that the company is having problems. The fact that it is such a small percentage, as Taleb pointed out, is the most concerning aspect of the situation. The timing of Taleb’s comments is appropriate, as the crypto industry is facing a contagion due to the FTX collapse.
This leads to the question: What’s next on the crypto horizon? The once-safe zone is now a threat to financial stability.
Let’s examine how the community has reacted to this.
The Crypto Community Speaks Out
In response to Taleb’s claims, ethereum ethereum Blockchain NetworkTechnology co-founder vitalik buterin vitalik buterin Vitalik Buterin is a professional programmer and writer who is famous as the Co-Founder of Ethereum. Buterin along with Gavin Wood, Charles Hoskinson, Joseph Lubin, and Anthony Di launched Ethereum in 2014. He co-created Ethereum when he understood that he could construct a new, possibly enhanced version by iterating on the Bitcoin blockchain. He has been involved in the Bitcoin community since 2011, writing and co-founding articles for Bitcoin magazine. Vitalik linked Bitcoin to a calculator and a future blockchain to a smartphone and used the same method of improving the system’s strength by making it more general purpose to blockchain network space. He was honored with the Thiel Fellowship Award in 2014 for bringing his innovative scientific and technical projects to reality, won the World Technology Network prize, Fortune 40 under 40 lists, and appeared on the Under 30 list of Forbes at the age of 23. EntrepreneurCrypto and Blockchain Expert took it upon himself to come forward and debunk these claims.
Buterin emphasized the “psychological burden” of holding one’s entire wealth in an illiquid asset.
The Canadian-born Russian programmer added that it is wise to diversify one’s holdings, which doesn’t necessarily indicate trouble.
According to him, there’s no harm in “mixing things up”, and doing so can help one remain confident in their investments.
Interestingly, a week after Coinbase went public on Nasdaq, it was reported that Armstrong sold $291M in Coinbase shares on the launch day. SEC filings show Armstrong sold 749,999 shares in three batches.
Incidentally, it was also revealed last month that Armstrong would be selling around 2% of his Coinbase shares to raise money for scientific research.
In addition to all of this, Shopify’s CEO, Lutke Tobias, has been on a Coinbase purchasing binge since he joined the board of directors in January. During the time frame of this article, Coinbase (COIN) has fallen 4.33% versus the dollar, trading at 46.76. Since last year, the global financial crisis has caused COIN to drop by 86.52%.
The collapse of FTX and Alameda, once worth more than $30 billion, is catastrophic from an investor’s perspective, but the broader effect is a lack of trust in crypto. In the long run, these incidents may make investors hesitant to invest.
All in all, it’s important to understand that crypto has yielded impressive profits for people and has also caused significant losses. Investors should not invest in uncontrolled markets without understanding the hazards. In high-risk situations like crypto, investors can lose everything, as is apparent by the FTX crisis.