brian armstrong ceo and cofounder coinbase speaks during the milken institute global conference on may 2 2022 in beverly hills california coinbase shares fell more than 8 monday extending a slide thats pushed the crypto exchange to its lowest since its market debut in april 2021 the drop comes as bitcoins slump continues and investors worry about contagion from ftxs spectacular collapse earlier this month nineteen months after going public with a market cap of over 85 billion coinbase has fallen below the 10 billion mark and has lost over a quarter of its value in the past four trading sessions questions have been swirling about the health of ftxs rival exchanges sparking industrywide selloffs that have caused some companies to temporarily suspend trading and others to prepare potential bankruptcy filings mizuho analysts wrote in a note on friday that daily volumes in the industry are trending 30 to 40 below their average for the year coinbase ceo brian armstrong said in an oped for cnbc on nov 11 that his company does not have any material exposure to ftx but he has sympathy for everyone involved coinbase shares are down more than 83 so far this year its stressful any time there is potential for customer loss in our industry and a lot of people are losing a lot of money as a result of ftxs struggles armstrong said bank of america downgraded coinbase on friday citing contagion risk for the cryptocurrency exchange platform even if it is not another ftx that does not make them immune from the broader fallout within the crypto ecosystem wrote bank of americas jason kupferberg said prior to ftxs descent the market was in the midst of a crypto winter that had sent prices of bitcoin and ethereum tumbling and forced a number of firms into bankruptcy earlier this month coinbase reported a revenue plunge of more than 50 in the third quarter from a year earlier and a loss of 545 million in june the crypto exchange slashed 18 of its workforce the subsequent selloff has been even more extreme with bitcoin falling more than 3 on monday to its lowest in over two years ethereum fell over 6 on monday solana a coin that was touted and backed by ftx founder sam bankmanfried has lost over twothirds of its value in two weeks in a matter of days ftx went from a 32 billion valuation to bankruptcy as liquidity dried up customers demanded withdrawals and rival exchange binance ripped up its nonbinding agreement to buy the company ftx filed for chapter 11 bankruptcy protection nov 11 bankmanfried said the companys assets were fine two days before he was desperate for a rescue he has since said in tweets that hes trying to recover deposits for the companys customers