Are you sure that is your code? textscan() returns a cell array, so your C is a cell array and thus C(m) is a 1x1 cell array (which has a string inside it), but you cannot assign a cell array into a numeric array (you initialized coordinates as zeros() which is numeric).
Even if you were to change it to C{m} then C{m} would be a string, most likely of multiple characters, and assigning multiple characters into a single numeric location is not going to work.
When you use textscan with a '%s' format, the input will be divided up into (whitespace delimited) strings with line boundaries treated the same as whitespace, so C will contain one location per string. e.g.,
would return
{'fizz'; '19'; '39'; 'bar'}
You assume in your code that m starts from 11, so your code that accesses C(m) is going to fail of there were not at least 11 strings in the file.