Coinbase’s Crypto-Backed Loans Notch Record Liquidations Amid Bitcoin, Ethereum Plunge
Coinbase customers are experiencing pain in new ways as Bitcoin and Ethereum tumble, with losses piling up for thousands of users through the exchange’s crypto-backed lending product.
Over the past week, Coinbase users have lost $170 million worth of collateral through liquidations on DeFi platform Morpho, according to a Dune dashboard. As Bitcoin and Ethereum notched double-digit declines, some 2,000 users lost $90.7 million on Thursday alone.
When Coinbase began providing access to Bitcoin-backed loans last year, the company positioned the product as a way for people to grow their wealth. It later expanded to Ethereum-backed loans, while raising loan limits to $5 million per customer.
As Bitcoin and Ethereum have…
