..

Coinbase Goes Public, Exposure to Regulatory Danger?

Written by:
Aaron Goldstein
Published on:
Apr/14/2021

Coinbase is making its initial public offering of stock April 14 and this has helped push the price of Bitcoin up to near $64,000 as of Wednesday morning.

“The Coinbase IPO is potentially a watershed event for the crypto industry and will be something the Street will be laser focused on to gauge investor appetite,’” Wedbush analyst Daniel Ives wrote this week.

Jordan Atkins of Coingeek.com suggests the news "demonstrates that we are currently at an awkward phase in the digital asset story, caught between two distinct eras".

Atkins points to the excessive fees at Coinbase.

So, what would Coinbase look like in a word where its fees are comparable to that of the Nasdaq? If Coinbase’s average fee for the first quarter of this year was 0.01% rather than 0.5%, Coinbase’s revenues would drop from $1.5 billion to less than $40 million.

In other words, the Coinbase IPO is an offer to buy into a race-to-the-bottom that hasn’t even started yet.

He also argues that an IPO defeats the purpose for which cryptocurrencies are intended, the entire concept of anonymity.

Stretching out ahead of us, is an inevitable future in which the digital asset industry has reached maturation: our service providers are compliant and watched carefully, our lawmakers have adapted or introduced legislation where necessary and regulators and law enforcement the experience to pursue bad actors in the same way they would in any other industry.

There is hope for other companies in the space.

Regulatory and legislative attention are slowly purifying the digital asset lake at a time where the industry is in the mainstream like never before. Competition is going to come thick and fast and will have plenty of room to out-maneuvre Coinbase in terms of fees. At the same time, these new companies are becoming less vulnerable to the great regulatory filter that has hitherto been protecting Coinbase.

Bitcoin incidentally is the most used funds transfer method by those online gambling businesses that operate in grey areas, encompassing more than half the world market. 

Coinbase and similar exchanges should never be used to send and receive Bitcoin and similar cryptocurrencies to and from Internet gambling sites as these transactions are not anonymous.  This is also a violation of Coinbase's terms of services.  It is always recommended from a security standpoint to transfer funds through a separately set up Bitcoin wallet.

- Aaron Goldstein, Gambling911.com

Business/Financial News

Dow Jumps 400 Points, Nasdaq Surges 2% Following Inflation Report: Latest BetOnline Financial Odds

Dow Jumps 400 Points, Nasdaq Surges 2% Following Inflation Report: Latest BetOnline Financial Odds

Consumer prices rose 8.5% in July, and while that may seem like a lot, it was less than expected as the pace of the rise had slowed.

£9.9 Billion Class Action Lawsuit Filed Against Binance, Kraken, Others

£9.9 Billion Class Action Lawsuit Filed Against Binance, Kraken, Others

A £9.9 billion class action lawsuit has been filed against Binance, Bittylicious, Kraken and Shapeshift.  The plaintiffs are mostly BSV Blockchain investors.

VERDICT: Peter McCormack Liable for Defamation on All Counts

VERDICT: Peter McCormack Liable for Defamation on All Counts

The judge also found that McCormack’s defamatory tweets had caused serious harm to Wright's reputation in the United Kingdom.

Odds on the JetBlue Spirit Airways Merger Getting Approval

Gambling911.com has the odds of a JetBlue Spirit Airways merger receiving approval from the U.S. government by July 2024 set at +130.

Mark Cuban Anticipates SEC to Impose 'Nightmare' Crypto Registration Rules

Mark Cuban Anticipates SEC to Impose 'Nightmare' Crypto Registration Rules

And another serial entrepreneur, Calvin Ayre, asks: "How is anyone surprised that the SEC thinks most token platforms are securities when we have published this", directing folks to an article appearing on CoinGeek entitled: 'Ethereum 2.0 – Ether’s journey from a security to a security'

Syndicate