Coinbase Global Inc (NASDAQ:COIN) lost almost half its value in five days, as trouble mounted further with outages and a potential bankruptcy on the horizon.
A financial filing suggested the cryptocurrency exchange and wallet service may be headed for insolvency, with account holders possibly classed as unsecured creditors and, therefore, potentially losing all money from their accounts.
In the wake of this news, Coinbase experienced an outage with users having difficulty withdrawing funds and some unable to access the app or website at all.
The company confirmed the issues in a tweet on Thursday: “We are aware that some customers are having issues trading and accessing accounts on Coinbase and Coinbase Pro.
“Your funds are safe, and we are actively working on the issue.
“We’ll provide an update here soon.”
A combination of rumoured bankruptcy, a large drop in revenues reported earlier this week and the outage has sent its share price plummeting.
The stock nosedived 48% in the five days to Thursday's close and 58% in the last eight days, widening fears of a global crypto price crash.
This was all sparked by a torrid start to the year for crypto, which has shaken investors’ confidence in digital currencies and seen both Bitcoin and Ethereum shed over 55% in value from their November all-time highs.