Once upon a time, I was a fan of Coinbase. I even bought into their IPO!
Despite them never listing HIVE and a few other major issues, I forgave them for that. But things have to change as time goes on. Regualation is coming and the big hammer is going to strike as hard and fast as it can.
Despite their missteps, however, Coinbase has never stolen from me, and I've appreciated the trustworthiness that accompanied their higher fees.
Recently, Coinbase announced the opening of its offshore cryptocurrency derivatives exchange. While this move may seem like a cause for concern, it appears to be a reaction to the ongoing crypto crackdown by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. This crackdown has been targeting fundamentally good actors like Coinbase, while companies like Celsius Network and FTX have gone relatively unchecked.
Reflecting on Coinbase's history, I find myself reminded of the times when the platform did absolutely nothing wrong. CEO Brian Armstrong has never gambled away users' funds or lied about the company's finances, making Coinbase a relatively reliable choice in the crypto space. That being said, the company is far from perfect – in March 2021, the CFTC slapped Coinbase with a $6.5 million penalty for flaws in its BTC price data and wash trading activities.
With the launch of Coinbase International Exchange, the platform's trustworthiness could potentially be at risk. The offshore leverage trading offering currently operates strictly through an API, without an app or website. This move may be an attempt to rally support against Gensler's crypto crackdown, but it also exposes the company to new risks.
The connection between the U.S. Coinbase product and the new international offering creates shared risk, potentially impacting financial stability and regulatory oversight. Worst-case scenarios include entanglements between the U.S. and international entities, making the entire system more fragile. Additionally, the SEC may begin targeting Coinbase more aggressively due to its international presence.
In conclusion, the uncertainty surrounding Coinbase is not the result of the company betraying users' trust, but rather the misguided attempts by regulators like Gary Gensler to protect us. As customers, we can only hope that this situation resolves itself without compromising the trustworthiness that has made Coinbase a reliable option in the ever-evolving crypto landscape.
My name is Asteroids - well, that's my Hive name, anyways. I believe firmly in the future of Web3 technology and its potential to reshape our lives. I'm a serial entrepreneur and my aim in life is to always evolve and find new ways to leverage technology in my life.
As I continue to build things, I find new and important wisdom in all sorts of places. My goal here on Hive is simply to share that wisdom so that you can improve as well.
Working is as much about building good habits as it is about doing the actual work. Remembering this on a daily basis has changed my life for the better.
Until next time,
-A