Coinbase – The Shib Daily

Judge Allows Insider Trading Lawsuit Against Coinbase Execs

Michaela — Mon, 02 Feb 2026 12:44:25 +0000

A Delaware judge has declined to dismiss a shareholder lawsuit accusing Coinbase CEO Brian Armstrong and board member Marc Andreessen of trading on nonpublic information ahead of the company’s 2021 public listing, allowing the case to proceed.

A Delaware court has allowed a shareholder lawsuit against Armstrong and Andreessen to move forward, even after an internal company review found no evidence of misconduct. According to a report by Bloomberg Law, Judge Kathaleen St. J. McCormick ruled on Friday that the case could proceed. The lawsuit, filed in 2023, claims Andreessen sold approximately $118.7 million in Coinbase shares through his venture firm, Andreessen Horowitz, while Armstrong sold about $291.8 million worth of stock.

The lawsuit focuses on Coinbase’s choice to go public via a direct listing instead of a traditional initial private offering (IPO). Unlike an IPO, the direct listing did not impose a lockup period, allowing existing shareholders to sell their shares immediately, and it did not issue new shares that could dilute existing ownership.

The lawsuit’s plaintiff claims that Coinbase directors were aware the company was overvalued and sold shares to avoid potential losses. Coinbase and its executives have denied the allegations, stating there is no evidence they acted on nonpublic information. The company reportedly told Bloomberg Law it was disappointed by the court’s ruling and intends to vigorously defend against the claims.

The lawsuit was paused last year while a special litigation committee conducted a 10-month review, ultimately recommending that the case be dismissed. The committee found the stock sales were limited and intended primarily to ensure liquidity for Coinbase’s direct listing, noting that the company’s share price closely mirrored Bitcoin’s performance, undermining claims of insider-driven trades. However, the plaintiff questioned the committee’s independence, citing past business connections between member Gokul Rajaram and Andreessen’s firm. Judge McCormick agreed that these ties raised valid concerns, though she noted there was no evidence of bad faith.

The lawsuit’s continuation comes amid reports of tension between Armstrong and the White House. A source close to the Trump administration suggested that the White House might withdraw support for the CLARITY Act unless Coinbase reached a bank-friendly yield agreement.

The administration was reportedly upset over Coinbase’s decision to pull its backing for the bill, which the company said raised concerns about potential restrictions on decentralized finance, tokenized stock trading, and sharing stablecoin yields with customers. Sources described the move as a “rug pull” against both the White House and the broader crypto sector, while emphasizing that no single company represents the entire industry.

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Cloudflare Outage Takes Major Crypto Sites Offline Worldwide

Michaela — Wed, 19 Nov 2025 07:26:34 +0000

Cloudflare, the global Content Delivery Network and internet security provider, has restored services following a widespread outage that disrupted multiple high-profile platforms, including X, ChatGPT, Coinbase, and Blockchain.com. The company attributed the downtime to an internal service degradation.

“I won’t mince words: earlier today we failed our customers and the broader Internet when a problem in [Cloudflare] network impacted large amounts of traffic that rely on us,” Cloudflare CTO Dane Knecht wrote in an X post following the disruption. “The sites, businesses, and organizations that rely on Cloudflare depend on us being available and I apologize for the impact that we caused,” he added.

I won’t mince words: earlier today we failed our customers and the broader Internet when a problem in @Cloudflare network impacted large amounts of traffic that rely on us. The sites, businesses, and organizations that rely on Cloudflare depend on us being available and I…
— Dane Knecht (@dok2001) November 18, 2025

Knect explained that a hidden bug in one of Cloudflare’s bot mitigation services was triggered by a routine configuration change, causing widespread network and service disruptions. The Cloudflare CTO clarified that the outage was the result of a technical issue and not the result of any cyberattack.

Cloudflare reported in an incident update published on November 18 at 19:28 UTC that its systems have returned to normal, with no ongoing issues or elevated errors and latency across its network.

The outage disrupted access for users on a range of platforms, including Ledger, BitMEX, Toncoin, Arbiscan, DefiLlama, as well as X, Truth Social, Coinbase, and Blockchain.com.

Source: Kraken

The Cloudflare outage follows closely on the heels of technical problems at Amazon Web Services (AWS) last month, which also disrupted several major online platforms. Users reported simultaneous access issues across multiple sites, suggesting a centralized failure in backend systems. Given the reliance of many digital services on AWS for hosting and data management, disruptions at the provider can have far-reaching effects across the internet.

The recent outages at both Cloudflare and AWS spotlight the growing dependence of the internet on a small number of major infrastructure providers. As more businesses, financial platforms, and social networks rely on these centralized services, even minor technical issues can cascade into widespread disruptions, affecting millions of users worldwide.

These incidents serve as a reminder for companies to invest in redundancy, monitoring, and contingency planning to minimize downtime and maintain user trust. For end users, staying informed about service status updates and adopting cautious online practices can help navigate temporary outages. As cloud and web security providers continue to expand, balancing innovation with reliability will be crucial to sustaining a resilient digital ecosystem.

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Centralized vs Decentralized Exchanges: Key Differences You Need to Know

Michaela — Fri, 31 Oct 2025 15:15:13 +0000

Crypto exchanges are digital marketplaces where you can buy, sell, or swap cryptocurrencies like Bitcoin or Ethereum. Not all exchanges are the same, which is why understanding centralized vs decentralized exchanges matters.

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Key points:

Control and security matter. Centralized exchanges hold your funds and are convenient but carry risks. Decentralized exchanges give you full control but require you to manage your own security.
Trading experience differs. CEXs are fast, liquid, and beginner-friendly. DEXs offer more privacy and direct peer-to-peer trading but can be slower and more complex.
Choosing the right platform depends on your priorities. Beginners and high-volume traders may prefer CEXs, while privacy-focused or control-conscious users might choose DEXs.

Centralized exchanges (CEX) are run by companies that manage trades and often hold your funds. Decentralized exchanges (DEX) let you stay in full control, with trades happening directly between users through smart contracts.

Knowing the difference affects your security, control, and overall trading experience, making it easier to trade smarter from the start.

What Is a Centralized Exchange (CEX)?

A centralized exchange, or CEX, is basically a crypto marketplace run by a company that manages everything behind the scenes. When you trade on a CEX, the platform often holds your funds, matches buyers with sellers, and handles the technical stuff so you don’t have to worry about it. Think of it like a digital bank for crypto trading.

Popular examples include Binance and Coinbase, which millions of people use to buy, sell, and swap coins with just a few clicks. These platforms are designed to be user-friendly, so even if you are new to crypto, you can jump in without learning a bunch of complicated tech first.

Why people love CEXs:

They are easy to use, even for beginners.
They offer high liquidity, meaning you can trade large amounts without affecting the price too much.
Transactions are usually fast and smooth.

But there are trade-offs:

Since the exchange holds your funds, you give up a bit of control.
There is a custodial risk, meaning if the platform gets hacked, your money could be at risk.
Being centralized makes them a tempting target for hackers, so security depends a lot on the company running the exchange.

Centralized exchanges make trading easy and convenient, but they also remind us why the debate of centralized vs decentralized exchanges is so important. In the next section, we’ll see how decentralized exchanges flip this model on its head, giving control back to the user.

What Is a Decentralized Exchange (DEX)?

If a centralized exchange feels like a bank, a decentralized exchange, or DEX, is more like a self-serve marketplace where you are your own bank. On a DEX, there is no middleman managing your funds. Instead, trades happen directly between users through smart contracts, which are automated programs on the blockchain that handle the rules of the trade for you.

Popular DEXs include Uniswap and SushiSwap, where you can swap tokens straight from your own wallet without giving up control of your crypto. It’s all about peer-to-peer trading, transparency, and staying in charge of your assets.

Why people love DEXs:

You keep full control over your funds, reducing custodial risk.
They are censorship-resistant, meaning no single company can freeze your account.
DEXs often offer more privacy, since you don’t need to create an account with personal info.

The trade-offs:

Liquidity can be lower, so large trades might affect prices more than on a CEX.
They can feel more complex for beginners, with wallet setups and understanding smart contracts.
Transactions may be slower, especially when the blockchain is busy, and gas fees can add up.

Understanding DEXs is essential in the ongoing conversation about centralized vs decentralized exchanges. While CEXs prioritize convenience, DEXs prioritize control and privacy. Knowing what each offers can help you pick the platform that fits your style.

Key Differences Between CEX and DEX

When deciding between a centralized vs decentralized exchange, it helps to break things down into a few key areas:

Control Over Funds

CEX: The platform holds your crypto. Easy, but you rely on them.
DEX: You keep full control. Your keys, your crypto.

Security

CEX: Hacks are possible since funds are stored on the platform.
DEX: Fewer platform risks, but you must protect your own wallet.

Fees and Speed

CEX: Fast trades, often lower fees for big volumes.
DEX: Depends on blockchain; can be slower with higher gas fees.

Privacy

CEX: Accounts usually require personal info.
DEX: Trade mostly anonymously.

User Experience

CEX: Beginner-friendly with customer support.
DEX: More hands-on; wallet setup and smart contracts required.

Choosing the Right Exchange

Beginners: CEX for simplicity.
Control-focused traders: DEX for privacy and self-custody.
Goals: Quick, high-volume trading favors CEX; exploring niche tokens favors DEX.

Knowing these differences makes it easier to pick the exchange that matches your style and comfort level.

Centralized vs Decentralized Exchanges: Picking What Works for You

At the end of the day, the choice between a CEX and a DEX comes down to what matters most to you. Centralized exchanges offer convenience, speed, and beginner-friendly tools, while decentralized exchanges give you control, privacy, and the freedom to trade directly with others.

Understanding the key differences in control, security, fees, privacy, and user experience helps you make smarter decisions. Whether you value simplicity or total control, knowing the ins and outs of centralized vs decentralized exchanges means you can pick the platform that fits your trading style and feel confident navigating the crypto world.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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Coinbase CEO Says the Future of Startups Is Entirely On-Chain

Michaela — Mon, 27 Oct 2025 06:26:48 +0000

Brian Armstrong, CEO of the cryptocurrency exchange Coinbase, has unveiled a vision to bring every stage of a startup’s journey, from incorporation, fundraising, and public trading, onto the blockchain.

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Key points:

Coinbase CEO Brian Armstrong envisions a future where startups are built entirely on-chain, allowing founders to incorporate, fundraise, and go public through blockchain-based systems.
Armstrong argues that on-chain fundraising could eliminate reliance on banks and legal intermediaries, making capital formation faster, fairer, and more transparent.
The vision complements Coinbase’s recent call for U.S. regulators to adopt blockchain, AI, and API tools to modernize financial oversight and strengthen the nation’s digital finance framework.

In an interview on the TBPN podcast, Armstrong outlined his vision for a fully on-chain startup lifecycle. He described a future where founders could incorporate their companies, raise seed funding, receive instant capital in USDC, and eventually go public through tokenized equity. Armstrong suggested that such a model could significantly expand access to capital and empower more entrepreneurs to launch their ventures globally.

The Coinbase CEO explained that under this model, startups could bypass traditional banks and legal intermediaries for global transactions. Instead, funding would be raised instantly through on-chain smart contracts, allowing founders to receive capital, generate revenue, accept crypto payments, secure financing, and eventually take their companies public, all within the blockchain ecosystem.

Armstrong said the current fundraising process remains cumbersome and inefficient, suggesting that moving it on-chain could make capital formation faster, fairer, and more transparent.

Armstrong’s proposal for fully on-chain startups aligns with Coinbase’s recent call for the U.S. government to modernize financial crime prevention by incorporating blockchain analytics, artificial intelligence (AI), and Application Programming Interfaces (APIs) into federal compliance systems.

In a formal response to the U.S. Department of the Treasury’s call for input on new ways to detect illicit activity in digital assets, Coinbase submitted a letter written by its Chief Legal Officer, Paul Grewal. The exchange outlined four key reforms it believes the Treasury and Congress should implement to enhance oversight and modernize the nation’s framework for combating financial crime in the crypto sector.

Armstrong’s vision and Coinbase’s policy recommendations reflect a broader push to bring the financial system into the digital age. By advocating for startups to operate entirely on-chain, from incorporation to public listing, while urging U.S. regulators to adopt blockchain-based compliance tools, Coinbase is positioning itself at the center of a potential shift in how capital, regulation, and innovation intersect.

The message is clear: blockchain isn’t just about new assets, but about reimagining the infrastructure of modern finance. Whether policymakers embrace that future could determine how competitive the U.S. remains in the next wave of global economic transformation.

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Coinbase Urges US to Harness Blockchain & AI to Combat Crypto Crime

Michaela — Wed, 22 Oct 2025 09:05:56 +0000

Crypto exchange Coinbase has called on the U.S. government to modernize financial crime prevention by integrating blockchain analytics, artificial intelligence (AI), and Application Programming Interfaces (API) into federal compliance frameworks. The company also proposed creating safe harbors to let firms use these tools to meet anti–money laundering (AML) and counter–terrorism financing standards.

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Key points:

Coinbase urged the U.S. government to modernize financial crime prevention by integrating blockchain analytics, AI, and APIs into existing anti–money laundering and counter–terrorism frameworks.
The exchange proposed four reforms, including regulatory safe harbors for AI, clearer guidance for API-driven compliance, and recognition of decentralized ID and zero-knowledge proofs.
Chief Legal Officer Paul Grewal stressed that regulators must innovate as rapidly as bad actors to maintain effective financial oversight.

In a formal response to the U.S. Department of the Treasury’s request for comment on innovative methods to detect illicit activity involving digital assets, Coinbase submitted a letter authored by Chief Legal Officer Paul Grewal. The filing outlined four key reforms the company believes the Treasury and Congress should adopt to strengthen oversight and improve the nation’s approach to financial crime in the digital asset sector.

Grewal later summarized the proposals in a post on X, noting that one of the first steps the U.S. government could take is to establish a regulatory safe harbor under the Bank Secrecy Act. This framework, he said, would protect firms that responsibly use AI to enhance anti–money laundering compliance, including transaction monitoring and the filing of Suspicious Activity Reports (SARs). “The conditions for that safe-harbor should focus on governance and outcomes, as opposed to forcing a one-sized-fits-all model,” Grewal added.

When bad guys innovate in financial crime, good guys need innovation to keep pace. @coinbase filed a response to @USTreasury's Request for Comment on “Innovative Methods to Detect Illicit Activity Involving Digital Assets” to underscore this reality and 4 particular reforms UST…
— paulgrewal.eth (@iampaulgrewal) October 20, 2025

Coinbase also recommended that regulators issue formal guidance defining expectations for API-driven AML technologies. The exchange said such guidance should clarify acceptable use cases, data privacy obligations, and interoperability standards to ensure consistent adoption across the financial sector.

The crypto exchange further proposed amending the Bank Secrecy Act’s customer identification rules to recognize decentralized identity solutions and zero-knowledge proofs as valid methods for verifying user identities.

Finally, Coinbase recommended that the government issue guidance formally endorsing and incentivizing the use of Know-Your-Transaction screening and blockchain analytics clustering as more effective tools for meeting AML compliance standards.

“The US needs [to] move on this [now],” Grewal wrote at the end of the X thread, reiterating his stance that as bad actors advance their methods of financial crime, regulators and compliant firms must innovate just as quickly to stay ahead.

Coinbase’s recommendations come as U.S. regulators intensify their scrutiny of digital asset platforms, with policymakers weighing how to balance innovation with oversight. Whether the Treasury takes up these proposals could signal how open Washington is to integrating emerging technologies into the country’s financial crime framework.

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Coinbase Login Chaos Hits Users as Amazon Web Services Outage Strikes

Michaela — Tue, 21 Oct 2025 09:14:24 +0000

Several major online platforms, including crypto exchange Coinbase, crypto trading platform Robinhood, Amazon, Snapchat, and Reddit, experienced widespread outages. The disruptions were reportedly linked to technical issues affecting Amazon Web Services (AWS), one of the world’s largest cloud computing providers.

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Key points:

Several major platforms, including Coinbase, Robinhood, Amazon, Snapchat, and Reddit, faced widespread outages linked to issues with Amazon Web Services (AWS).
Coinbase confirmed scaling issues tied to the AWS disruption, temporarily affecting trading, transfers, and customer support, but assured users their funds were safe.
The incident reignited debate over the internet’s dependence on centralized infrastructure, highlighting the vulnerabilities of cloud-based systems that power global digital services.

Users across multiple platforms began reporting access problems simultaneously, indicating a possible centralized disruption in backend systems. Because many digital services depend on Amazon Web Services for hosting and data management, outages within AWS often trigger widespread ripple effects across the internet.

On Monday, amid the widespread service disruptions, Coinbase confirmed it was experiencing technical difficulties and assured users that their funds remained secure. The crypto exchange said its team was actively addressing the problem and later issued follow-up updates as the situation evolved.

We're aware many users are currently unable to access Coinbase due to an AWS outage.

Our team is working on the issue and we'll provide updates here. All funds are safe.
— Coinbase Support (@CoinbaseSupport) October 20, 2025

In follow-up statements, Coinbase explained that the disruptions stemmed from scaling issues linked to the AWS outage, which may have caused some users to experience difficulties accessing its services. The exchange also reported intermittent problems with its customer support channels, including dropped chats and calls, while several core platform functions, such as trading and transfers, were temporarily affected.

As of this writing, Coinbase reported that its systems have fully recovered from the AWS-related outage. The exchange said it does not anticipate further instability but will continue to closely monitor system performance to ensure service reliability.

By Monday evening, according to CNN, Amazon confirmed that its main systems were back online, though lingering issues persisted within its cloud computing division.

The recent wave of outages emphasizes the growing fragility of an increasingly interconnected digital ecosystem. As major platforms from crypto exchanges to e-commerce and social media rely heavily on shared cloud infrastructure, even brief disruptions can send shockwaves across the internet.

While services have largely been restored, the event reignited ongoing discussions about resilience, decentralization, and the risks of concentrated infrastructure in the digital economy, especially as more financial and communication systems migrate online and rely on cloud-based networks for daily operations.

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Coinbase CEO Aims to Replace Banks With Bold Crypto Super App Vision

Michaela — Mon, 22 Sep 2025 13:21:24 +0000

Coinbase CEO Brian Armstrong has unveiled plans for a “crypto super app” that would integrate payments, credit cards, and Bitcoin rewards, positioning the exchange to compete directly with traditional banking services.

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Key points:

Coinbase CEO Brian Armstrong revealed plans for a “crypto super app” offering payments, credit cards, and Bitcoin rewards as an alternative to banks.
Armstrong criticized high banking fees and said crypto infrastructure can deliver faster, cheaper, and more efficient financial services.
The success of Coinbase’s vision hinges on adoption, regulation, and its ability to compete with traditional financial institutions.

In an interview with Fox Business, the Coinbase CEO confirmed the company’s vision to roll out a comprehensive suite of financial services, including payments, credit cards, and rewards, all built on cryptocurrency infrastructure. Armstrong said the goal is to make Coinbase the primary financial account for users, adding that “crypto has a right to do that.”

Armstrong argued that the traditional banking system is outdated and inefficient, pointing to high transaction fees as a major burden for consumers. He questioned why credit card holders are forced to pay fees of two to three percent on every transaction, arguing that such costs highlight the need for better alternatives. “It’s just some bits of data flowing over the internet. It should be free or close to it,” Armstrong stated.

Furthermore, Armstrong shared the long-term vision for Coinbase’s super app is to deliver improved financial services, including a credit card offering 4% Bitcoin rewards, with the broader aim of positioning the platform as a full alternative to traditional banks.

Coinbase has partnered with major institutions including JPMorgan and PNC, Armstrong revealed. Still, he noted that some of the policy approaches taken by these banks diverge from expectations, stressing that Coinbase would prefer to see all players compete on equal terms.

As the digital asset sector matures, the line between traditional finance and crypto is becoming increasingly blurred. Industry observers suggest that consumer demand for faster, cheaper, and more accessible services is pushing both banks and crypto firms to rethink their models.

While critics warn of regulatory uncertainty and risks tied to digital currencies, proponents argue that the technology’s potential to streamline payments and expand access is too significant to ignore.

Whether Coinbase’s vision of a crypto super app succeeds will depend on market adoption, regulatory responses, and the company’s ability to deliver a seamless experience. What is clear is that the push to reinvent finance is accelerating, and competition between old and new systems is only just beginning.

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Coinbase Data Breach: Suspect Named as TaskUs Staff Took $500K in Bribes

Michaela — Thu, 18 Sep 2025 11:01:54 +0000

A suspect has been named in the Coinbase data breach, with New York court filings alleging that TaskUs employees accepted more than $500,000 in bribes to leak sensitive customer data impacting thousands of users.

Key points:

TaskUs employees allegedly accepted over $500K in bribes to leak Coinbase customer data, exposing information from more than 10,000 users.
Court filings identify employee Ashita Mishra as a central figure, accused of coordinating a “hub-and-spoke” scheme to gather and distribute sensitive data.
The breach intensified scrutiny of outsourcing in crypto, as critics warn third-party vulnerabilities could endanger user security and trust.

An amended class-action complaint filed Tuesday in the Southern District of New York alleges that employees of TaskUs, an outsourcing firm working with Coinbase, accepted bribes of $200 per photo to capture customer information from their computer screens. The scheme is believed to have generated more than $500,000, exposing sensitive data from thousands of Coinbase users.

Source: Court Listener

Court filings identify TaskUs employee Ashita Mishra as a key figure in the Coinbase data breach, alleging her involvement began in September 2024. Investigators claim Mishra stored personal information from more than 10,000 Coinbase customers on her phone and captured as many as 200 photos daily. The documents outline a “hub-and-spoke” scheme in which Mishra and an accomplice coordinated smaller groups of TaskUs staff to gather and share sensitive user data.

Filings state that participants in the scheme operated in isolation, with each unaware of the others’ involvement. This structure allowed the operation to persist even if one member was identified or compromised.

The Coinbase data breach exposed a wide array of sensitive customer information, including names, contact details, portions of Social Security numbers, partial banking data, and images of government-issued IDs such as passports and driver’s licenses.

Additionally, the filing accused TaskUs of delaying disclosure, while plaintiffs claimed Coinbase became aware of the breach in January 2025 but did not disclose it publicly until May. By that time, criminals had allegedly stolen between $180 million and $400 million in customer assets. Coinbase later reimbursed customers whose accounts were compromised in the data breach.

In May, Coinbase dismissed the TaskUs employees implicated in the scheme, severed ties with other overseas contractors, and introduced stricter oversight measures, though it has not disclosed the identities of the additional foreign agents involved.

The incident has amplified calls for stronger oversight of outsourcing practices in the crypto sector, with industry observers warning that security gaps at contractors could expose users to heightened risks.

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Coinbase Pushes DOJ to Block State Crypto Crackdowns, Cites Risks

Michaela — Wed, 17 Sep 2025 14:08:59 +0000

Crypto exchange Coinbase has formally urged the U.S. Department of Justice (DOJ) to intervene in state-level crypto enforcement, warning that inconsistent “blue-sky” regulations could hinder industry growth.

Key points:

Coinbase urged the DOJ to intervene in state-level crypto enforcement, warning inconsistent “blue-sky” regulations could stifle industry growth.
The company called for Congress to adopt broad preemption measures, exempting federally regulated digital assets from state licensing and regulatory requirements.
Acting on Coinbase’s request could establish federal oversight as the primary authority, providing clearer rules, reducing legal uncertainty, and fostering a more innovation-friendly crypto environment.

In a 14-page letter dated September 15, Coinbase Chief Legal Officer Paul Grewal called on federal authorities to address state-level enforcement targeting crypto firms, urging the DOJ to encourage Congress to introduce comprehensive preemption measures.

Grewal noted that recent government initiatives aimed at promoting fairness, consistency, and uniformity in digital asset regulation have begun to address the damage caused by the prior administration’s “regulation-by-enforcement” approach.

However, Grewal argued that certain states are persisting with this approach through “novel, expansive, and flawed interpretations of their own securities laws” and by introducing new crypto licensing frameworks aimed at undermining the federal government’s pro-innovation agenda.

Grewal cited the Oregon Attorney General’s lawsuit against Coinbase, which alleges that numerous digital assets on the exchange are unregistered securities, and contends that other states are being encouraged to “fill” what is described as an “enforcement vacuum being left by federal regulators.”

Furthermore, Grewal urged that the DOJ submit a formal views letter to Congress advocating for broad preemption measures in upcoming market-structure legislation. He emphasized that any preemption framework should classify federally regulated digital assets as exempt from state blue-sky laws, clarify that new state licensing and regulatory requirements do not apply to crypto intermediaries, and ensure the provisions are applied retroactively.

If the DOJ acts on Coinbase’s request, it could mark a major shift in how digital assets are regulated in the U.S., establishing federal oversight as the dominant authority over patchwork state rules.

Such a move would provide clearer guidance for crypto firms navigating a fragmented regulatory environment, reducing the risk of conflicting state enforcement actions and legal uncertainty. By promoting uniform standards and preemption provisions, the federal government could foster a more innovation-friendly landscape, encouraging investment and growth within the sector.

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Coinbase Reveals How Crypto Projects Can Secure a High-Profile Listing

Michaela — Mon, 15 Sep 2025 09:45:26 +0000

Crypto exchange Coinbase has released a detailed guide explaining how it lists digital assets, emphasizing a merit-based process with no fees as part of its transparency initiative.

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Key points:

Coinbase has published a detailed guide outlining how crypto projects can apply for listings, with a merit-based, fee-free process.
Applications require project details such as whitepapers, team info, tokenomics, source code links, audits, and are evaluated on market demand, community engagement, and technical integration.
Following submissions, Coinbase conducts Legal Compliance and Technical Security reviews, providing projects a structured pathway into its ecosystem while supporting regulatory clarity.

“We get a ton of questions about how and why assets get listed on Coinbase. To be more transparent we wrote a guide on how it all works,” Coinbase CEO Brian Armstrong wrote on a post on X, where he shared the guide.

We get a ton of questions about how and why assets get listed on Coinbase. To be more transparent we wrote a guide on how it all works.

TL;DR: listings are free and merit-based. Every asset is evaluated against the same standards.

Link in replies. pic.twitter.com/HmqQDt6085
— Brian Armstrong (@brian_armstrong) September 12, 2025

The guide instructs projects to submit applications through Coinbase’s listings page, noting that review timelines may range from hours to several months, depending on the asset’s complexity and the thoroughness of the submission.

The Coinbase guidelines outline that projects must complete an online questionnaire capturing key details, including the whitepaper, team background, tokenomics, source code links, block explorers, and any third-party audits. After submission, Coinbase evaluates business factors such as market demand, community engagement, and technical integration requirements, followed by two core assessments: Legal Compliance and Technical Security.

“A Coinbase listing goes beyond market access; it’s entry into an ecosystem where trust, scale, and resilience are the foundation,” the exchange wrote in its guide. “Our process is thorough because our standards are designed to protect customers, support healthy markets, and give projects the strongest possible foundation for long-term success,” it added.

Coinbase Pushes for Regulatory Clarity and Industry Transparency

Coinbase released the guideline shortly after mobilizing its UK users to back a public petition advocating for a pro-innovation approach to blockchain and stablecoin regulation. Hosted on the UK government’s website, the petition calls for a comprehensive framework covering stablecoin rules, broader blockchain adoption, and the appointment of a dedicated crypto and blockchain “czar.”

The initiative gained momentum this week after Coinbase reportedly sent in-app notifications urging users to participate, with screenshots on X showing the exchange encouraging its community to “help the UK lead stablecoin innovation now.”

The release of Coinbase’s listing guide emphasizes the growing importance of transparency and standardized processes in the crypto industry, signaling a shift toward clearer, more structured pathways for emerging digital assets. As regulators and users alike demand greater accountability, exchanges that provide clarity could set a benchmark for the next phase of crypto adoption.

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Coinbase Pushes UK Blockchain Petition — Could It Spark a Parliament Debate?

Michaela — Fri, 12 Sep 2025 13:37:48 +0000

Crypto exchange Coinbase has rallied its UK user base behind a public petition calling for a pro-innovation approach to blockchain and stablecoin policy, giving the July-launched campaign fresh momentum.

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Key points:

Coinbase has mobilized its UK user base to support a petition calling for pro-innovation blockchain and stablecoin policies, boosting momentum for the July-launched campaign.
The petition urges the UK government to establish a comprehensive framework, including stablecoin regulation, blockchain adoption, and appointing a dedicated crypto “czar,” with over 7,000 signatures so far.
Former finance minister George Osborne and Coinbase warn that without urgent reform, the UK risks falling behind global competitors like the US, Singapore, and Hong Kong in digital asset innovation.

The petition, published on the UK government’s website, calls for a comprehensive policy framework that covers stablecoin regulation, wider blockchain adoption, and the appointment of a dedicated blockchain and crypto “czar.”

Source: UK Parliament

“For centuries London was the centre of global trade and finance. We consider that the future is digital where equities, bonds and real world assets exist as tokens – tradeable 24/7, instantly, globally,” the petition further stated.

The petition gained renewed traction this week after Coinbase reportedly sent in-app notifications urging users to sign. Screenshots circulating on X show the exchange calling on its community to “help the UK lead stablecoin innovation now.”

X user, Emi, shared that upon logging into Coinbase, they received the petition prompt, which warned that the UK risks falling behind as other nations advance. The message urged users to sign in support of protecting innovation, competitiveness, and the pound’s global position.

Logged into Coinbase to this…

This petition calls on the government to:
– Support a forward-looking regulatory regime for stablecoins & tokenisation
– Explore government uses for blockchain
– Appoint a blockchain & crypto czar

Clear rules = more builders, more adoption, more… pic.twitter.com/gA4ETn0QjI
— Emi (@itsEmi) September 11, 2025

Furthermore, the petition notes that it considers stablecoins to be the basis of a tokenised economy, as the U.S. has ruled out CBDCs and is leaning into stablecoins. “The UK is at a crossroads and we believe it will fall behind without a strategy,” the petition wrote. “This is a question of national interest to preserve the competitiveness of the City and sterling’s global standing,” it added.

As of now, the petition has collected more than 7,000 signatures. Under UK rules, a government response is triggered once it reaches 10,000, while surpassing 100,000 signatures could see the issue brought forward for debate in Parliament.

Coinbase and Osborne Sound Alarm on UK Crypto Lag

Coinbase’s latest push for regulatory clarity in the UK builds on earlier efforts to spotlight gaps in the country’s approach to digital assets. Back in July, the exchange released a satirical video titled “Everything is Fine”, which mocked Britain’s financial system by pairing upbeat lyrics about strong finances with imagery of inflation, poverty, and economic hardship.

If everything is fine, then don’t change anything at all.

But when the financial system isn’t working for so many people in the UK, it needs to be updated. pic.twitter.com/rL1EaKu12V
— Coinbase (@coinbase) July 31, 2025

“If everything is fine, then don’t change anything at all,” Coinbase teased. “But when the financial system isn’t working for so many people in the UK, it needs to be updated,” the exchange added.

In August, former UK finance minister George Osborne cautioned that Britain could lose ground in the global digital asset race without urgent regulatory reform. He criticized the Labour government and the Bank of England for moving too slowly compared to other countries and likened the current moment to the 1980s “Big Bang” reforms, which transformed London into a top financial hub. Osborne warned that failing to act decisively could mean missing a comparable opportunity in the crypto era.

Furthermore, Osborne noted how jurisdictions such as the United States, Abu Dhabi, Hong Kong, and Singapore are actively advancing legal frameworks for cryptocurrencies and stablecoins, presenting them as models of progress. By comparison, he argued, the UK is being “completely left behind.”

The Shib Social Feed

The post Coinbase Pushes UK Blockchain Petition — Could It Spark a Parliament Debate? first appeared on The Shib Daily.

Coinbase Aims for AI to Write Half Its Code by October, Doubling Output

Michaela — Thu, 04 Sep 2025 13:57:29 +0000

Coinbase CEO Brian Armstrong has unveiled an ambitious goal to have artificial intelligence generate over 50% of the platform’s code by October, marking a significant step in integrating AI into the company’s software development process.

Listen to This Article

Prefer to listen? Hit play below to hear the narrated version.

Key points:

Coinbase aims to have AI generate over 50% of its code by October, up from the current ~40%.
The company is expanding use of AI coding tools like Copilot, Cursor, and Claude Code to empower engineers while maintaining quality.
The move sparks debate over risks and best practices, with potential to influence how AI is integrated across the crypto industry.

In a post on X, Armstrong revealed that roughly 40% of the platform’s code is currently generated by AI, with plans to raise that share in the coming months. “Obviously it needs to be reviewed and understood, and not all areas of the business can use AI-generated code. But we should be using it responsibly as much as we possibly can,” the Coinbase CEO wrote.

~40% of daily code written at Coinbase is AI-generated. I want to get it to >50% by October.

Obviously it needs to be reviewed and understood, and not all areas of the business can use AI-generated code. But we should be using it responsibly as much as we possibly can. pic.twitter.com/Nmnsdxgosp
— Brian Armstrong (@brian_armstrong) September 3, 2025

A chart shared by Armstrong on X shows that the proportion of Coinbase’s code generated by AI has more than doubled since April. According to Coinbase’s approach and risk framework, which Armstrong shared, the company’s current focus is to grow adoption and familiarity with LLM workflows while maintaining quality, aiming to empower its engineers.

“In the spirit of this mission, we have enabled a variety of common coding tools across the company such as Cursor, Copilot, and Claude Code,” Coinbase wrote. “We’ve also invested in tooling that lets our engineers safely experiment with brand new and custom tools, which can run directly on foundation models through an OpenAI compatible router that is now used daily by >1500 engineers,” they added.

Armstrong’s announcement drew criticism online, with some users expressing concern over the use of AI in securing customer funds, warning that relying on automated code could pose significant risks.

From The Shib: The Economic Engine: Where Code and Community Now Collide

“Why would your goal be to hit any metric like this? Lines of code should be minimized if anything, and whether it’s AI or not, quality and maintainability is what matters. It’s bizarrely arbitrary and ridiculously easy to game if that’s your organization’s goals,” one user wrote.

Why would your goal be to hit any metric like this? Lines of code should be minimized if anything, and whether it's AI or not, quality and maintainability is what matters. It's bizarrely arbitrary and ridiculously easy to game if that's your organization's goals.
— ChrisCo (@ChrisCo512) September 3, 2025

As AI technology advances, the ways major crypto platforms integrate it into core operations could set new industry standards, influence investor confidence, and redefine the future of digital finance.

The outcome could shape how AI is adopted across crypto platforms, redefining development practices and setting new benchmarks for efficiency and innovation in the sector.

The post Coinbase Aims for AI to Write Half Its Code by October, Doubling Output first appeared on The Shib Daily.

Coinbase and OKX Bring Crypto to Australia’s Retirement System

Michaela — Tue, 02 Sep 2025 12:11:25 +0000

Coinbase and OKX, two of the world’s leading cryptocurrency exchanges, have announced services for Australia’s self-managed superannuation funds (SMSFs), offering investors new ways to include digital assets in their retirement savings.

Listen to This Article

Prefer to listen? Hit play below to hear the narrated version.

Key points:

Coinbase and OKX have launched dedicated services for Australia’s SMSFs, making it easier for investors to include digital assets in retirement savings.
The exchanges offer integrated custody, record-keeping, and professional referrals, simplifying compliance and management for investors.
Over 500 investors have joined Coinbase’s waiting list, while OKX reports demand has exceeded expectations, highlighting growing interest in crypto within Australia’s retirement system.

Per a Bloomberg report, Coinbase and OKX are formalizing Australians’ long-standing ability to hold digital assets in SMSFs by offering dedicated, streamlined products that simplify access and management.

The exchanges are providing integrated custody and record-keeping services, along with referrals to accountants and law firms, so investors do not have to set up structures or manage compliance on their own.

According to Bloomberg, over 500 investors have registered for Coinbase’s SMSF service, with most intending to invest up to A$100,000 in digital assets. OKX, which introduced a comparable offering in June, reported that interest has significantly exceeded initial projections.

The initiative represents one of the first coordinated efforts by cryptocurrency exchanges to integrate with a retirement system that ranks among the world’s largest per capita, making it easier for mainstream investors to access digital assets.

As Australia takes steps to integrate digital assets into its retirement system, the United States is also advancing efforts to allow cryptocurrencies and other alternative assets within 401(k) retirement plans.

In August, President Donald Trump signed an executive order aimed at broadening the range of assets eligible for retirement accounts, giving alternative asset managers greater access to trillions of dollars in U.S. retirement savings.

“Many wealthy Americans, and Government workers who participate in public pension plans, can invest in, or are the beneficiaries of investment in, a number of alternative assets,” the executive order stated. The White House has argued that regulatory hurdles and concerns over potential legal challenges have limited retirees’ access to investment options that might deliver higher returns.

The moves by both countries signal a growing recognition of digital assets as a mainstream component of retirement planning, reflecting broader trends in the evolving global financial landscape.

The post Coinbase and OKX Bring Crypto to Australia’s Retirement System first appeared on The Shib Daily.

115 Crypto Firms Push Senate to Shield Devs – Impact on Shib

Michaela — Thu, 28 Aug 2025 08:41:39 +0000

Summary: Why are crypto firms urging the Senate to protect developers in new legislation?

They argue that developers and non-custodial service providers should not be regulated like traditional financial intermediaries. Without clear protections, innovation could move overseas, weakening U.S. leadership in digital finance. Safeguards would ensure open-source builders can keep advancing blockchain technology without restrictive barriers.

Listen to This Article

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A coalition of 115 crypto firms, including exchanges like Coinbase, Kraken, and Uniswap Labs, along with investors and advocacy groups, has called on the U.S. Senate to ensure protections for software developers and non-custodial service providers are included in upcoming market structure legislation.

In a letter to Congress, the coalition urged lawmakers to establish strong, nationwide safeguards for software developers and non-custodial service providers within market structure legislation, warning that the bill cannot gain their support without these protections.

“As much-needed digital asset law develops in the United States, it is critical that legislation recognizes and preserves the historical protections afforded to open-source software development, and ensures that software developers and non-custodial service providers who create, support, and enable access to decentralized networks are not forced into unworkable regulatory categories designed for the traditional, intermediated financial world,” the letter wrote.

The coalition emphasized that the United States has long fostered a supportive environment for software development, enabling the country to remain at the forefront of technological innovation over the past fifty years, from early internet advancements to the rise of artificial intelligence.

Furthermore, the firms contend that to maintain U.S. leadership in the digital financial era, and to realize the Trump Administration’s goal of positioning the country as the “crypto capital of the world”, market structure legislation must recognize blockchain as neutral infrastructure and provide clear protections for both the developers building it and the non-custodial service providers facilitating user access.

The crypto firms warn that in the absence of clear legislation, the United States risks falling further behind in software development as regulatory uncertainty drives innovation elsewhere.

Crypto Firms Caution on Intermediary Rules and Innovation

The debate over whether software developers and non-custodial services should be treated as financial intermediaries carries direct implications for ecosystems such as Shiba Inu.

Without explicit protections, developers working on Shibarium could be subjected to heightened compliance obligations, creating delays for upgrades like cross-chain bridges, liquidity integrations, and other infrastructure improvements.

For SHIB holders, the outcome of this policy battle may shape how quickly the ecosystem advances and whether its decentralized finance services remain open, permissionless, and accessible to a global user base.

Industry advocates argue that imposing intermediary-style regulations on builders who never take custody of user funds risks stifling the pace of innovation in projects like Shibarium, where agility and decentralized participation are core to growth.

The post 115 Crypto Firms Push Senate to Shield Devs – Impact on Shib first appeared on The Shib Daily.

Coinbase and Indian Minister Explore Blockchain Push — What It Means for SHIB

Michaela — Thu, 07 Aug 2025 10:47:20 +0000

Summary: Why is Coinbase’s meeting with Karnataka’s IT Minister significant?

The meeting spotlights increasing government interest in using blockchain technology for digital governance and public services. It shows a move from viewing blockchain as just an investment to seeing it as important infrastructure. This signals growing adoption of blockchain in real-world applications and potential collaboration opportunities.

Listen to This Article

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Coinbase’s Chief Legal Officer, Paul Grewal, has recently met with Karnataka IT Minister Priyank Kharge to discuss potential collaboration on blockchain technology, developer tools, and cybersecurity. The meeting signals a shift toward greater engagement with India’s evolving crypto landscape.

“Met with the team from [Coinbase] to discuss their developer platform which is helping simplify blockchain development and enabling developers to build [on-chain] applications with ease,” Kharge wrote in a post on X. Kharge also noted that the discussions included exploring collaborative opportunities in cybersecurity, leveraging their combined global expertise to advance Karnataka’s initiatives in the field.

Met with the team from @coinbase to discuss their developer platform which is helping simplify blockchain development and enabling developers to build onchain applications with ease. We also discussed potential areas of collaboration on cybersecurity and how their global… pic.twitter.com/aAAEPLZZ7U
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) August 6, 2025

In addition, Grewal and Kharge explored opportunities for talent development through skilling and capacity-building initiatives, as well as potential collaboration on incubation programs and joint hackathons in the future.

Kharge shared that the Karnataka government is actively exploring the use of blockchain technology in governance and digital public infrastructure, recognizing its growing relevance on the global stage.

In response to Kharge’s post on X, Grewal expressed enthusiasm about the potential for Coinbase to contribute to Karnataka’s continued leadership in the technology sector. “The future is [on-chain]—and it’s being built here,” Grewal wrote.

Thank you Minister @PriyankKharge and team + I am excited to explore how @Coinbase can further support Karnataka’s tech leadership through developer tools, cybersecurity collaboration, and capacity-building. The future is onchain—and it’s being built here. https://t.co/Y9tQNiA3mW
— paulgrewal.eth (@iampaulgrewal) August 6, 2025

The meeting follows Coinbase’s recent regulatory approval from India’s Financial Intelligence Unit (FIU), a key step toward reestablishing its presence in the country nearly three years after suspending local operations.

What Coinbase India Talks Mean for SHIB Holders

This is more than a regional business trip. Coinbase’s meeting with Karnataka’s IT Minister highlights a growing shift in how public institutions view blockchain: not just as an asset class, but as infrastructure. As governments like Karnataka begin integrating blockchain into digital governance and public services, it signals a broader move toward real-world adoption.

For SHIB holders, that matters. It reflects a changing climate, one where crypto is stepping into civic and institutional conversations. As more regions explore blockchain for transparency, cybersecurity, and digital infrastructure, SHIB’s visibility as a community-driven token could benefit from being part of the broader conversation about decentralized innovation.

The post Coinbase and Indian Minister Explore Blockchain Push — What It Means for SHIB first appeared on The Shib Daily.

Coinbase CEO: Exchange Would Delist Tether if Required by U.S. Law

Gushiken Yona — Wed, 22 Jan 2025 04:11:18 +0000

A regulatory showdown looms as Coinbase CEO Brian Armstrong declares the exchange will delist Tether if U.S. laws demand it, placing the world’s most traded stablecoin in the crosshairs.

Tether Regulatory Challenges Intensify

In a recent interview at the World Economic Forum in Davos, Switzerland, Coinbase CEO Brian Armstrong stated that the cryptocurrency exchange would remove Tether (USDT) from its U.S. platform if new legislation mandates such an action. Armstrong also noted that he anticipated future U.S. legislation to demand stablecoin issuers to hold 100% of their reserves in U.S. Treasury bonds and to pass audits.

Armstrong emphasized that while Coinbase values Tether’s role in the crypto ecosystem, offering a bridge for users to transition between cryptocurrencies, it would comply with any future U.S. regulations. “If we are required by law to delist Tether, we will,” the CEO said, adding that Coinbase aims to provide customers with a secure way to move their holdings, but compliance with regulatory changes is a top priority.

Tether Role and Controversial Reserve Practices

Tether, which is pegged 1:1 to the U.S. dollar, has long been a point of contention in the crypto industry due to its alleged limited transparency. Tether’s reserves are primarily held in U.S. Treasury bonds, but the company also backs its stablecoin with gold, bitcoin, and loans.

Despite these assets, Tether has been criticized for not releasing fully audited financial statements, drawing the attention of U.S. authorities investigating potential violations of sanctions and anti-money-laundering laws. Tether, which is based in the British Virgin Islands, published its Independent Auditors’ Reports conducted by BDO Italia on September 30, 2024.

Last year, the Wall Street Journal reported that U.S. Justice and Treasury Departments have been investigating Tether for possible violations of sanctions and anti-money-laundering rules. Tether has said it cooperates with law enforcement to combat illicit activity.

Coinbase’s European Action and Regulatory Compliance

Coinbase’s delisting of Tether for European users in recent weeks, underlined a global trend: tightening regulation of stablecoins. The move directly responded to the European Union’s Markets in Crypto-Assets Regulation (MiCA), which demands that stablecoin issuers hold readily accessible cash reserves in banks.

Across the Atlantic, U.S. senators have also proposed bills to regulate stablecoins, with the aim of prohibiting unregulated, offshore-based versions like Tether, though these efforts remain in their early stages. Conversely, Circle, a U.S.-based competitor and a company in which Coinbase is a shareholder, asserted that its USDC stablecoin already complies with the EU’s MiCA Regulation.

The post Coinbase CEO: Exchange Would Delist Tether if Required by U.S. Law first appeared on The Shib Daily.

Coinbase Delists Wrapped Bitcoin: A Power Play or a Necessary Move?

Gushiken Yona — Wed, 20 Nov 2024 14:01:18 +0000

Coinbase is delisting Wrapped Bitcoin (WBTC), and the crypto world is asking: why? The move has sparked accusations of favoritism towards Coinbase’s own tokenized Bitcoin product, cbBTC, and ignited a broader discussion about the balance of power in the decentralized finance space.

Coinbase Announces Delisting

The delisting announcement, which occurred earlier this week, sent ripples of concern throughout the crypto community. Wrapped Bitcoin, a long-standing and widely used tokenized version of Bitcoin deeply integrated with various DeFi protocols, faced removal from a major cryptocurrency exchange. This threatened disruption to established systems and raised questions about Coinbase’s motives.

The WBTC team responded with a public statement expressing “regret and surprise” at Coinbase’s decision. They emphasized WBTC’s commitment to “providing the community with the most compliant, transparent, and decentralized BTC tokenization product,” highlighting its “innovative mechanisms and rigorous governance.”

The team underscored their “active communication and full cooperation with all due diligence processes, including with Coinbase,” implicitly questioning the rationale behind the delisting. While stopping short of direct accusations, the WBTC team urged Coinbase to reconsider and offered to “provide additional information to address any concerns.”

Coinbase’s recent launch of cbBTC on the Solana network, backed by a $10 million investment, further fueled speculation. This move positioned the exchange to become a dominant player in Solana’s Bitcoin-based DeFi ecosystem. Critics argued that the timing of the WBTC delisting, so close to the cbBTC launch, suggested a deliberate strategy to eliminate a competitor.

The interpretation of Coinbase’s move as a strategic effort to boost its own cbBTC offering is forcefully supported by a chorus of industry voices. Duo Nine, founder of the Young Crypto Community (YCC), tweeted a damning assessment: “wBTC changes custody; Justin Sun enters; Coinbase promotes $cbBTC without proof of reserves—’trust me!’—selling IOUs. Stay safe, keep Bitcoin on the Bitcoin network.” This analysis suggests a deliberate attempt to shift users to Coinbase’s product.

Echoing these concerns, Mohamed Fouda, a Venture Partner at Volt Capital, criticized the delisting as a step too far, stating, “Delisting a competitive product isn’t in the spirit of decentralization and composability.” This sentiment highlights the perceived contradiction between Coinbase’s actions and the industry’s professed values.

Adding to the outrage, Dennis Dinkelmeyer, Founder of Midas RWA, directly challenged Coinbase’s lack of transparency: “No clear justification exists; by their standards, cbBTC should also be delisted.” Dinkelmeyer’s statement underscores the perceived hypocrisy at the heart of the controversy.

Coinbase’s official announcement cited a routine review and stated that WBTC no longer met its listing standards, assuring users their funds would remain accessible. However, this explanation did little to quell concerns.

The post Coinbase Delists Wrapped Bitcoin: A Power Play or a Necessary Move? first appeared on The Shib Daily.

Ethena Labs Faces Backlash Over 180M ENA Token Allocation

Gairika Mitra — Tue, 29 Oct 2024 16:15:04 +0000

Ethena Labs, the organization behind the ENA and USDe tokens, faces scrutiny following revelations that 180 million ENA tokens have been allocated to sats farming, potentially diluting rewards for other participants.

The Ethena team’s action has raised questions about their ethical practices, transparency, and long-term commitment to community trust. This is a critical element for a CeDeFi (centralized decentralized finance) project, where a significant portion of operations and decisions are not fully visible to the public.

Alert: Important Notice for ENA/USDe Holders

The Ethena team is currently using 180M ENA tokens (25% of SENA supply that earns sats) to farm sats in Season 3, effectively diluting other participants’ rewards. This raises significant concerns about the team’s ethics.

A thread
— Nomad (@Nomad02887202) October 27, 2024

Coinbase Wallet Transfers Raise Questions Over Ethena’s Token Allocation and Reward System

The issue began in the beginning of October, following the distribution of 180 million ENA tokens to six separate wallets associated with Coinbase Prime Custody. This is the designated custodian for Ethena Labs and the Ethena Foundation.

Notably, Coinbase received 3 billion ENA tokens in August, well above the existing ENA circulation according to Ethena’s published vesting schedule. Observers believe this figure represents locked ENA tokens intended for the Ethena Foundation and core team members rather than circulation for general use.

As soon as sENA staking launched alongside the S2 airdrop, the Coinbase Prime Custody address transferred substantial amounts of ENA to individual wallets in a series of transactions: 30 million and 35 million on the first day, followed by 35 million, 30 million, 25 million, and 25 million over the next days. These transfers, now linked to sats farming, have positioned these wallets prominently on Ethena’s sats leaderboard.

Currently, addresses associated with Ethena rank highly, including 17th with 33.6 billion sats and 20th with 32.2 billion sats. These wallets also accumulate Ethereal points, rewards from a decentralized exchange set to launch in late 2024.

Source: Arkham Intelligence

Critics Question Ethena Transparency and Fairness

Critics were quick to point out questionable ethics and raised issues of fairness in reward distribution, especially given Ethena’s previous record of sudden rule changes, as per the X post. In past seasons, some ENA holders found themselves subject to unexpected staking requirements and last-minute rule alterations, including a mandatory 50% stake during Season 1’s vesting schedule and a 30-day average holding rule for Season 2 participants. These sudden shifts, affecting potential earnings and staking commitments, have left some holders skeptical of Ethena’s consistency and transparency.

Such concerns vs. Ethena Labs are not new. As a CeDeFi project, its operations require a delicate balance between centralized decision-making and decentralized financial principles. However, the black-box nature of the project has made it challenging for holders to gain insight into how it handles funds. Ethena Labs reportedly manages a $2.6 billion user fund at present, yet few details are available regarding the exact allocation of these resources, the revenue generated, or the benefits allocated to SUSDe holders.

Ethena Labs addressed community concerns on Discord and X, confirming that no locked team or investor tokens are staked as sENA or earning Ethereal rewards. According to Ethena, all ENA tokens involved adhere to the original vesting schedule, with only unlocked foundation tokens, which are eligible but will not receive any airdrop or related rewards. To enhance transparency, the company said it plans to add a UI section showing the total sENA eligible for future airdrops, excluding any undistributed sENA in Liquifi contracts.

The post Ethena Labs Faces Backlash Over 180M ENA Token Allocation first appeared on The Shib Daily.

Coinbase to Drop Tether in the EU: Because Who Needs Stability When You Can Have Rules?

Gushiken Yona — Sun, 06 Oct 2024 13:29:20 +0000

Have you heard about the latest drama brewing in the EU? Coinbase is about to make your holiday season extra spicy. Starting December 30, Europe’s crypto scene might be waving goodbye to some of its beloved stablecoins—chief among them, Tether. Yes, you heard that right, the largest stablecoin might soon be persona non grata in the EU, thanks to the snazzy new Markets in Crypto Assets (MiCA) regulations, MiCA, the EU’s new crypto sheriff, cracking down on stablecoins without proper licenses.

Coinbase is playing the role of the responsible adult at the crypto party (we know, ironic, right?), announcing they will de-list any stablecoin that hasn’t jumped through the EU’s regulatory hoops. Their deadline? December 30, 2024. So, consider this your festive gift from the regulatory gods: more compliance, fewer stablecoins. Ho ho ho.

The Tether Stablecoin Tangle: MiCA Madness

Tether, the heavyweight champ of stablecoins, isn’t exactly sweating it. They’ve graciously applauded the EU for their efforts but then slipped in a cheeky note that MiCA could “potentially introduce new risks.” Oh, really? You mean making something that was supposed to be stable suddenly more complicated might be risky? Shocking. But don’t worry, Tether promises a “technology-based solution” is on its way, which sounds like the crypto version of “don’t call me, I’ll call you.”

Here’s the kicker: Tether doesn’t have an e-money license in the EU. You know who does? Circle. So while Tether’s working on their secret tech magic, Circle’s already got their paperwork in order and is serving up those compliant USDC and EURC stablecoins like freshly baked regulation-compliant cookies. Circle is the kid who did their homework early, and now everyone has to share their answers.

Is This the Beginning of the End for Tether Stablecoin in the EU?

This brings us to the question everyone’s thinking but no one wants to ask: Is Tether toast in Europe? Are we about to see the top stablecoin dethroned by Circle just because of a few pesky laws? More importantly, does this mark the beginning of a world where compliance trumps innovation? Isn’t the whole point of crypto to shake off the shackles of traditional finance and bureaucracy?

Coinbase, ever the good student, says they’ll give EU users options to switch to other stablecoins. Because nothing screams decentralization like being told which coins you can use. At what point do we just admit that MiCA has turned the decentralized dream into the eurozone’s latest group project? Is this really the future we signed up for?

Can Crypto Survive the Rules?

And here’s where it gets existential. Is crypto about freedom and innovation, or is it just becoming another buttoned-up, rule-following financial system with shinier tech? MiCA might be a well-meaning attempt to clean up the crypto Wild West, but are we in danger of turning the wild frontier into a boring, rule-bound suburb where the only excitement comes from reading the fine print?

Not to worry, Coinbase will still list the Tether fraud everywhere else. https://t.co/GIjWuVpmio
— Bitfinex'ed Κασσάνδρα (@Bitfinexed) October 6, 2024

If stablecoins like Tether can’t survive the EU’s compliance maze, what’s next? Will we one day look back and say, “Remember when crypto was fun and unpredictable?” Or is this just the beginning of a more mature (read: boring) crypto ecosystem where only the regulatory darlings like Circle get to play?

Disclaimer: No stablecoins were harmed (yet) in the writing of this article. This is not financial advice. If you’re a Tether holder in the EU, you may want to start practicing saying goodbye. Or don’t. You’re in crypto; we live for the thrill, don’t we?

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

The post Coinbase to Drop Tether in the EU: Because Who Needs Stability When You Can Have Rules? first appeared on The Shib Daily.

Coinbase Seeks Court Order Forcing CFTC to Release SEC Docs

Lawrence Damilola — Thu, 03 Oct 2024 15:27:27 +0000

Coinbase has petitioned a federal court to compel the Commodity Futures Trading Commission (CFTC) to disclose communications with several cryptocurrency token issuers. The exchange seeks this information to defend against a lawsuit from the Securities and Exchange Commission (SEC), which alleges that Coinbase sold unregistered securities.

According to a motion filed on Tuesday, Coinbase is asking for the CFTC’s communications with the issuers of 12 cryptocurrencies that the SEC claims are unregistered securities. “This information is critical to Coinbase’s ability to defend itself against the allegations,” the company stated in its filing. The exchange also requested documents regarding the CFTC and SEC’s regulatory authority over digital assets.

Coinbase revealed that it had issued a subpoena to the CFTC in July after a prior attempt with a broader subpoena in June. The exchange noted that its first request was denied by the CFTC, which cited reasons such as “overbreadth, burden, and privilege.” Coinbase stated that the CFTC “has stonewalled” its requests and that the regulator “hasn’t even conducted a single search.”

CFTC’s Response to Subpoena Requests

The CFTC reportedly rejected the first subpoena because it was “overly broad and burdensome.” Coinbase noted that the CFTC “stated its willingness to reevaluate the subpoena if it were narrowed,” leading to a second, more focused request. However, this subpoena was also denied, with the CFTC claiming it was still “overly broad, vague, and would place an undue burden on the Commission.”

In its motion, Coinbase argued that the CFTC has not justified its claims of burden and that “no conceivable privilege could apply to them,” as the communications involved external parties. The exchange emphasized that both the SEC and CFTC have engaged with digital asset issuers in recent years to understand the regulatory environment better.

The SEC’s lawsuit, filed in June 2023, names 13 tokens as unregistered securities, including Solana, Cardano, and Polygon. Coinbase maintains that it requires access to CFTC communications to determine whether these tokens meet the definition of securities.

The post Coinbase Seeks Court Order Forcing CFTC to Release SEC Docs first appeared on The Shib Daily.

BlackRock Roasts Coinbase Potato Servers With 12-Hour Withdrawal Proposal

Gushiken Yona — Sat, 28 Sep 2024 14:28:38 +0000

BlackRock, the Wall Street titan testing the crypto waters with its pinky toe, has suddenly decided to cannonball into the deep end with Coinbase.

They’ve filed an amendment for their Bitcoin ETF, demanding that Coinbase, the ETF’s custodian, process Bitcoin withdrawals within a brisk 12 hours. Because apparently, in the lightning-fast world of high finance, waiting longer than half a day to access your digital gold is roughly equivalent to sending a carrier pigeon. Especially when you’re dealing with Coinbase, an exchange whose servers apparently run on a combination of hamster wheels and hopes and dreams – and those hamsters take very frequent naps.

Transparency or Coinbase Control? The Plot Thickens (and Smells a Bit Like Burnt Silicon)

On the surface, BlackRock’s move looks like a valiant champion for transparency and investor protection. After all, who wants their Bitcoin gathering dust in Coinbase’s digital vaults while they figure out if they’ve actually got the Bitcoin to cover withdrawals? But let’s be real, folks. Is BlackRock really that altruistic? Or is this a subtle power play, a way to flex their institutional muscles and exert more control over the Bitcoin market? Maybe they just want to make sure their Bitcoin isn’t propping up Coinbase’s questionable meme stock portfolio. Just sayin’. (Insert meme of a suspicious-looking Shiba Inu eyeing a pile of Dogecoins).

Coinbase: Caught in the Crosshairs (and Probably Down for Maintenance…Again)

Coinbase, the custodian for a menagerie of Bitcoin and Ether ETFs, is now sweating more than a Bitcoin miner in a heatwave. The crypto community, armed with pitchforks, memes, and a healthy dose of skepticism, has long suspected Coinbase of playing fast and loose with custodial practices. And let’s not forget Coinbase’s infamous reputation for spontaneous combustion whenever Bitcoin decides to do anything interesting. One minute you’re riding the bull wave, the next you’re staring at a “502 Bad Gateway” error while your portfolio (theoretically) moons. This demand for faster withdrawals could be seen as a direct shot at Coinbase’s downtime woes. Is BlackRock subtly saying, “Fix your potato servers, or we’re taking our Bitcoin and going home”?

Are they really settling all those ETF transactions on-chain like they claim? Or are they engaging in some shady fractional reserve shenanigans, hoping nobody notices? BlackRock’s 12-hour ultimatum might just force Coinbase to show their hand (and maybe invest in some server infrastructure that can handle more than three users at a time). Perhaps BlackRock should send Coinbase a fruit basket filled with working servers. It’s the thought that counts, right? (Insert meme of a fruit basket overflowing with high-end servers and a single, forlorn potato).

Decentralization: RIP? More Like DOA.

Remember that utopian dream of a decentralized financial system, free from the iron grip of Wall Street? Pepperidge Farm remembers. (Insert Pepperidge Farm meme). But with institutional giants like BlackRock stomping onto the crypto playground, that dream is fading faster than a Bitcoin bull run in a bear market. Is institutional adoption a necessary evil for crypto’s survival? Or is it a Trojan horse that will ultimately lead to its centralized demise?

Stay Woke, Crypto Fam! (And Maybe Invest in Some Backup Generators)

BlackRock’s 12-hour withdrawal demand is a spicy development in the ongoing saga of institutional crypto adoption. It raises important questions about transparency, control, and the future of decentralization. As always, it’s crucial to stay informed, think critically, and remember that in the Wild West of crypto, not all that glitters is gold (or Bitcoin). And maybe, just maybe, it’s time to start looking for alternatives to exchanges that fold faster than a cheap lawn chair when things get exciting.

Disclaimer: This article is satire. Investing in crypto is like playing a game of roulette with your rent money. Don’t blame us if you end up living under a bridge. (But if you do, at least the Wi-Fi is usually decent under there.)

The post BlackRock Roasts Coinbase Potato Servers With 12-Hour Withdrawal Proposal first appeared on The Shib Daily.

US Court Questions SEC’s Denial of Coinbase Crypto Rulemaking Request

Lawrence Damilola — Tue, 24 Sep 2024 14:17:42 +0000

It appears that the U.S. Court of Appeals for the Third Circuit is not sold on the Securities and Exchange Commission’s (SEC) decision to deny Coinbase’s request for crypto rulemaking.

Coinbase filed a petition in July 2022 asking the SEC to establish rules to govern securities traded through digital methods. The SEC denied the request in late 2023, leading Coinbase to ask the court to compel the regulator to provide a more detailed response.

Judges Criticize Lack of Explanation on Coinbase Decision

During the hearing on Monday, Judge Thomas Ambro criticized the SEC’s limited reasoning for denying Coinbase’s petition. “There’s an argument here that this is pretty darn close to vacuous,” Ambro remarked, according to a report from Law360. He acknowledged that the SEC is not required to provide extensive reasoning but emphasized that the denial should include more substance. Ambro added, “I don’t really understand why you’re denying rulemaking, even though I realize you don’t have to give a whole lot.”

Coinbase’s legal counsel, Eugene Scalia, argued that the SEC’s two-page denial was arbitrary and insufficient, especially given the ongoing enforcement actions against crypto firms.

“The commission provided zero explanation for rejecting Coinbase’s demonstration that the current SEC rules make it unworkable for digital asset companies to register with the SEC and for digital assets to function as designed,” Scalia told the panel.

Judges Point to SEC’s Focus on Enforcement

The court also questioned the SEC’s focus on enforcement actions rather than providing clear guidance for the crypto industry. Judge Stephanos Bibas noted that the SEC had pursued multiple enforcement cases against crypto companies. “So it’s not that the agency isn’t interested in the area; it’s just interested in picking off wrongs without giving higher-level guidance,” he said. Bibas also commented, “I would get it if this were the first or the second enforcement action, but we’re way down the road here.”

Coinbase’s Chief Legal Officer Paul Grewal expressed his frustration with the SEC’s approach in a post on X, saying, “The SEC refuses to provide a reasonable explanation for its barebones denial, yet it has wielded its purported authority to engage in an arbitrary enforcement campaign against our industry.”

Today @coinbase made oral arguments before the Third Circuit in our case against @SECgov’s repeated arbitrary and capricious denial of our petition for rulemaking, which we originally put forward over 2 years ago. Here’s the original petition: https://t.co/k0n2wwaBU9 1/5
— paulgrewal.eth (@iampaulgrewal) September 23, 2024

The SEC defended its position, explaining that other priorities and ongoing efforts influenced its decision not to engage in rulemaking at this time. In June 2023, the SEC charged Coinbase with operating as an unregistered securities exchange, broker, and clearing agency.

The post US Court Questions SEC’s Denial of Coinbase Crypto Rulemaking Request first appeared on The Shib Daily.

‘Baldilocks’ vs. Sun: Coinbase CEO Fires Back in Wrapped Bitcoin Debate

Gushiken Yona — Mon, 16 Sep 2024 22:06:22 +0000

Coinbase CEO Brian Armstrong, playfully dubbed “Baldilocks” by a crypto critic, has responded to a barrage of accusations from TRON founder Justin Sun regarding the recently launched Coinbase Wrapped Bitcoin (cbBTC), sparking a heated debate about centralization and trust within the cryptocurrency community.

Controversy Erupts Over cbBTC of Coinbase

Last week, Coinbase introduced cbBTC, an ERC-20 token fully backed by Bitcoin held in Coinbase custody. The move aimed to bridge Bitcoin with the Ethereum ecosystem, facilitating its use in decentralized finance (DeFi) applications.

However, Sun expressed strong reservations about cbBTC, alleging a lack of transparency and potential for censorship. In a series of tweets, Sun criticized cbBTC for its alleged lack of proof of reserves, independent audits, and the possibility of Coinbase freezing user funds.

He argued that cbBTC represented a centralized form of Bitcoin, susceptible to government intervention and undermining the decentralized principles of the cryptocurrency. “cbbtc lacks Proof of Reserve, no audits, and can freeze anyone’s balance anytime,” Sun tweeted.

“Essentially, it’s just ‘trust me.’ Any U.S. government subpoena could seize all your BTC. There’s no better representation of central bank Bitcoin than this. It’s a dark day for BTC.” Sun’s concerns resonated with some segments of the crypto community, particularly those who prioritize decentralization and distrust centralized entities.

cbbtc=central bank btc. There is no more ridiculous combination in the world than putting central banks and Bitcoin together. I imagine this is a day Satoshi Nakamoto could never have envisioned when creating Bitcoin. https://t.co/bi7EkKznpn
— H.E. Justin Sun(hiring) (@justinsuntron) September 12, 2024

Coinbase CEO Fires Back at Critics

His tweets were amplified by several figures in the community like Bitcoin OG @TylerDurden, who referred to Armstrong as “Baldilocks” in a now-deleted tweet. Armstrong responded directly to the criticism, defending cbBTC and Coinbase’s practices.

He emphasized that all institutional client funds are settled on-chain within one business day and highlighted Coinbase’s annual audits by Deloitte. “Baldilocks here,” Armstrong began his response.

“Not sure what this is all about TBH. All ETF mints and burns we process are ultimately settled onchain… This is what it looks like if you want a bunch of institutional money to flow into Bitcoin.”

Armstrong acknowledged that cbBTC relies on trust in Coinbase as a custodian but maintained that the company has a strong track record of securely holding billions of dollars worth of Bitcoin.

Despite Armstrong’s assurances, skepticism lingers within the crypto community. Some users remain unconvinced, questioning Coinbase’s transparency and the potential for government interference with cbBTC.

Analyst Defends Coinbase

Bloomberg Intelligence senior ETF analyst Eric Balchunas weighed in on the debate, expressing confidence in Coinbase’s practices. He argued that institutional partners like BlackRock would not tolerate any mishandling of their Bitcoin holdings and that Coinbase’s operations are subject to regulatory scrutiny.

“People keep asking me if I believe him. Yes, I do,” Balchunas tweeted. “Mostly bc BlackRock isn’t playing around folks. They would flip out if $COIN was screwing around w their btc, plus it would violate the ’33 Act.”

Balchunas attributed the skepticism surrounding cbBTC to two factors: Bitcoiners seeking to blame external forces for market fluctuations and a general distrust of institutions among cryptocurrency enthusiasts. He drew parallels to the skepticism surrounding gold-backed ETFs in the past, which were also accused of being “paper gold” and lacking transparency.

The debate surrounding cbBTC highlights the tension between the desire for institutional adoption of Bitcoin and the core principles of decentralization and trustlessness that underpin the cryptocurrency. While Coinbase’s initiative aims to bridge this gap, it has also exposed lingering concerns about the role of centralized entities in the decentralized world of crypto.

The post ‘Baldilocks’ vs. Sun: Coinbase CEO Fires Back in Wrapped Bitcoin Debate first appeared on The Shib Daily.

Friend.Tech Team Transfers Smart Contract Control As Platform Activity Slows

Lawrence Damilola — Mon, 09 Sep 2024 17:30:14 +0000

Friend.Tech, a Web3 social network platform, has effectively relinquished control over its operations by transferring its smart contract administration to Ethereum’s null address. This action, carried out yesterday, prevents further changes to the platform’s functionality or fees. The development team confirmed in an announcement on X that “no fees from either smart contracts or [the website] currently go to the Friend.Tech dev team multisig.”

Admin and ownership parameters have been set to 0x000…000 to prevent any changes to their fees or functionality in the future.

This change does not affect the separate web client operated at https://t.co/YOHabcBL3H which will continue to function as is. No fees from either…
— friend.tech (@friendtech) September 8, 2024

The platform, which launched on the Coinbase-backed Layer 2 network Base in August 2023, allowed users to trade tokens for “keys” to access the feeds of influential individuals. The transfer to Ethereum’s null address, often used as a burn address for permanently locking assets, means that the existing system is now fixed, and no further updates or modifications can be made.

Following its launch, Friend.Tech quickly gained popularity within the crypto community. By mid-September 2023, the platform’s daily earnings had surpassed Ethereum’s. The most valuable key, linked to the feed of the pseudonymous co-founder Racer, was sold for 8.9 ETH, approximately $14,500 at the time. The platform also secured a seed round of funding from the crypto venture capital firm Paradigm, though the investment amount was not disclosed.

However, after the initial surge in activity, Friend.Tech faced challenges in maintaining user engagement and trading volume. Data from The Block indicated a significant drop in activity, which coincided with the platform’s decision to remain on the Base network after initially considering a move to its own blockchain, dubbed “FriendChain.” The developers ultimately chose to stay on Base, leading to a decline in the platform’s native token value and user activity.

The transfer of control to the null address had an immediate impact on Friend.Tech’s native token, which dropped by nearly 26% to $0.067 within 24 hours, according to CoinGecko. The platform’s market capitalization, which reached $233.6 million shortly after its launch, has since decreased to $6.3 million. Additionally, the total value locked on the platform has fallen from its peak of $52 million in early October 2023 to less than $3.5 million, as reported by DefiLlama.

Friend.Tech’s TVL since August 2023 (Source: DefiLlama)

The decision to transfer control to the null address followed a period of uncertainty and confusion within the Friend.Tech community. Earlier plans to build a dedicated blockchain were scrapped, and issues with claiming a highly anticipated FRIEND token airdrop in May contributed to growing friction between the platform’s developers and users. Serpin Taxt, a developer at Ethos, a blockchain reputation protocol, commented on X that the move signaled the “end of an era” and was “not at all how I saw it playing out.”

Friend.Tech operates on Ethereum’s Layer 2 network Base, enabling creators to monetize their content through tokenized shares or “keys.” The platform competes with other decentralized social media networks such as Theta Network, Hive, and Decentralized Social. Despite its early success, the recent developments have cast uncertainty on its future trajectory, with the platform now effectively locked in its current state due to the transfer of smart contract control.

At the time of writing, Friend.Tech token is currently trading at $0.076 and has increased by 5.8% in the last 24 hours, according to CoinGecko,

The post Friend.Tech Team Transfers Smart Contract Control As Platform Activity Slows first appeared on The Shib Daily.

Coinbase Executives Sell $32 Million in Stock Over the Last 30 Days

Lawrence Damilola — Mon, 09 Sep 2024 13:10:50 +0000

Coinbase Global Inc. (COIN) executives, including CEO Brian Armstrong, President Emilie Choi, and Chief Legal Officer Paul Grewal, have sold approximately $32 million worth of the company’s stock in the last 30 days.

The latest real-time insider trading data showed that 149 sales transactions were conducted without any reported purchases. According to the data, Brian Armstrong, Chairman and CEO of Coinbase, recently sold multiple tranches of shares of over $4 million on September 4 at various prices ranging from $168 to $179 per share to complete the total number of transactions. Emilie Choi, President and Chief Operating Officer, also sold on the same day, with sales amounting to several million dollars. Chief Legal Officer Paul Grewal was involved in similar sales transactions on August 28.

Coinbase execs, chief legal officer, president, CEO, dumped 32 million dollars of Coinbase stock in the past 30 days.

Things you do when you're bullish. pic.twitter.com/dH8zMUilMX
— Bitfinex'ed Κασσάνδρα (@Bitfinexed) September 8, 2024

According to a recent Securities and Exchange Commission filing, Lawrence J. Brock, the Chief People Officer, offloaded a notable amount of his company stock. The sold shares, part of the Class A Common Stock, fetched over $3.2 million, with individual share prices falling between $200.8284 and $211.3539. These sales started on August 23, 2024, and adhered to a trading plan Brock set up on June 2, 2023. This strategy enabled the company insiders to systematically sell their stock as part of their financial planning efforts, mitigating insider trading concerns by relying on previously arranged plans rather than current, private information.

These transactions follow earlier substantial sales by Coinbase executives. A lawsuit filed in May 2023 in Delaware Chancery Court alleged that Coinbase executives, including CEO Brian Armstrong and board member Marc Andreessen, avoided over $1 billion in losses by selling stock shortly after the company’s public listing two years ago. The lawsuit claims these executives used insider information to sell stock before releasing unfavorable financial information, which led to a sharp decline in Coinbase’s stock price.

The legal complaint stated that the company’s board chose a direct listing rather than a traditional initial public offering and rapidly sold $2.9 billion in stock before “material, negative information” became public. “Within five weeks, those shares declined in value by over $1 billion, and Coinbase’s market capitalization plummeted by more than $37 billion,” the complaint says. The case seeks the return of “ill-gotten gains” from Armstrong, Andreessen, and several other top executives and board members.

Market analysts have noted changes in their evaluations of Coinbase amid these transactions. Jefferies adjusted its price target for Coinbase shares to $220, maintaining a “hold” rating due to decreased trading volumes and a 27% decline in transaction revenue. Barclays, maintaining an “underweight” rating with a price target of $206, noted outflows in Ethereum Exchange Traded Funds, potentially affecting Coinbase’s trading volumes. Despite these adjustments, Coinbase reported $1.4 billion in total revenue and $596 million in adjusted EBITDA for Q2, with subscription and services revenue rising by 17%.

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Coinbase Lobbying Spend Skyrockets as Crypto Regulation Intensifies

Gairika Mitra — Fri, 06 Sep 2024 16:12:20 +0000

Coinbase, the largest U.S. crypto exchange, has poured $2.86 million into lobbying efforts in 2023, ranking as the third biggest spender among crypto companies.

A recent report published by Socialcapitalmarkets revealed on Friday that Coinbase has the third largest market share in terms of trading volume. Coinbase logs the second-highest spot trading volume (~$1.47 billion) after Binance. It has used around 39 lobbyists in 2023, 32 of which have been revolvers.

Coinbase spent around $1.5 million in 2021 on lobbying efforts. This marks a sharp increase from the $230,000 it spent in 2020. It continued the upward trend in 2022, with the company shelling out $3.4 million — more than double its spending from the previous year. As it spent over $5 million by mid-2023, it cemented its place as one of the top lobbying spenders in the crypto sector.

Coinbase has been proactively engaging with lawmakers as regulatory bodies — including the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) — increasingly scrutinize the cryptocurrency space.

The report also reveals that crypto lobbying spend surged by 1386% in the last seven years. Almost 60% of the total lobbying expenditure happened between 2022 and 2023.

Apart from Coinbase, firms like Apollo Global Management spent $7.56 million, while Managed Funds Assn shelled out $4.11 million. Binance.us expenditure rose by 656.25% from $160,000 in 2021 to $1,215,000 in 2023. Ripple also saw a 1780% increase from $50,000 in 2017 to $940,000 in 2023.

Coinbase has, so far, focused on advocating for policies that would classify certain digital assets as commodities, rather than securities, which would subject them to lighter regulatory oversight.

Another key issue for Coinbase is the taxation of digital assets. It has been pushing for clear tax guidelines and exemptions that could benefit crypto users and businesses alike, aiming to reduce the tax burden on transactions and foster a more favorable environment for crypto innovation. It has also worked to influence discussions around anti-money laundering (AML) and know-your-customer (KYC) regulations.

The report concludes that lobbying has had a positive influence on the crypto industry. It also highlights how companies like IBM and Meta have increasingly engaged in lobbying efforts as well.

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Coinbase Legal Chief Calls Out SEC’s Crypto Ambiguity in FTX Case

Lawrence Damilola — Mon, 02 Sep 2024 08:53:10 +0000

Coinbase’s Chief Legal Officer, Paul Grewal, has lambasted the U.S. SEC for its murky stance on the legality of crypto transactions tied to FTX’s bankruptcy.

Grewal, along with other crypto industry players, accused the Securities and Exchange Commission of regulatory ambiguity, particularly when it comes to creditor repayments involving stablecoins. In a Sunday X post, Grewal blasted the SEC for its “overreach” and “unreasonable threats” against FTX creditors.

The SEC didn't outright state that such an action would be illegal, writing, "The SEC is not opining as to the legality, under the
federal securities laws, of the transactions outlined in the Plan," but notes that the agency, "…reserves its rights to challenge transactions… https://t.co/zAMqY7mTcd
— paulgrewal.eth (@iampaulgrewal) September 1, 2024

“Why clarify the market when threats and aspersions will do? Investors, consumers, and markets deserve better. Way better,” the executive further commented. Grewal’s statements reflect ongoing frustrations in the crypto community about the perceived lack of clear guidance from the SEC on digital assets.

The SEC’s recent actions stem from its filing on Aug. 30 to the United States Bankruptcy Court in Delaware, indicating that it could challenge the legality of repayments to FTX creditors made with stablecoins.

While the SEC did not assert that such repayments are illegal under federal securities laws, it reserved its right to dispute transactions involving stablecoins, stating, “The SEC is not opining as to the legality, under the federal securities laws, of the transactions outlined in the Plan and reserves its rights to challenge transactions involving crypto assets.”

Following FTX’s collapse in Nov. 2022, the exchange has been working on methods to repay creditors, including a plan to reboot the exchange, which was later abandoned. The current plan proposes repaying creditors based on the US dollar value of their assets at the time of FTX’s bankruptcy, either in cash or stablecoins. However, the SEC’s stance has created uncertainty over the legal handling of these repayments.

Alex Thorn, head of research at Galaxy Digital, also criticized the SEC’s approach, calling it “the height of jurisdictional overreach.” Thorn noted that the SEC’s filing comes despite the regulator dropping its case against Paxos, the issuer of Binance USD (BUSD), in July. Thorn said, “The SEC doesn’t even make a case here. They are just unwilling to let it go.”

Beyond the repayment method, the SEC and the U.S. Trustee have raised concerns about a provision in FTX’s proposed bankruptcy plan that would shield the exchange from future legal actions by creditors. The U.S. Trustee has called for the court to reject the plan, arguing that it would unfairly limit creditors’ rights to pursue legal claims against FTX.

The filing also highlighted that the current plan does not specify a “distribution agent” responsible for managing the repayment process, whether in cash or stablecoins. The absence of this detail has added to the SEC’s concerns, signaling potential legal challenges ahead for FTX’s proposed repayment plan.

The post Coinbase Legal Chief Calls Out SEC’s Crypto Ambiguity in FTX Case first appeared on The Shib Daily.

Crypto Ownership Among Young Voters Could Influence 2024 US Election: Report

Lawrence Damilola — Tue, 20 Aug 2024 08:53:25 +0000

Cryptocurrency ownership is increasing among young Democratic and Republican voters in swing states, making it a key factor that could determine who will win the high-stakes U.S. presidential election between former President Donald Trump and current Vice President Kamal Harris.

Forty-one percent of voters under 35 who own cryptocurrency in battleground states identify as Democrats, while 39% identify as Republicans, a study conducted in July by Impact Research has found. The study indicates a growing interest in digital assets that cuts across party lines, a fact that cannot be ignored by either party as Trump and Harris are polling neck and neck in swing states.

Arizona, Georgia, Michigan, Nevada, Pennsylvania and Wisconsin are considered the battleground states for the 2024 presidential election.

Young voters, particularly those between the ages of 18 and 34, are emerging as a crucial demographic in these states. In the 2020 election, youth turnout played a role in key states such as Georgia, where more than half of the voters under 30 cast ballots. This represented a significant increase from 2016 and contributed to President Joe Biden’s narrow victory in the state.

The study, commissioned by Coinbase research, suggests that these younger voters are increasingly disillusioned with the current financial system, driving interest in cryptocurrency as an alternative.

Morning Consult and Coinbase State of Crypto Report. Source: Coinbase

A different report from Pew Research found that in the 2022 midterm elections, 36% of voters were under 50, a decline from the 40% seen in 2018. Despite this trend, candidates on both sides of the aisle are beginning to recognize the importance of addressing the concerns of younger, pro-crypto voters.

Trump, who previously criticized Bitcoin as a “scam,” has shifted his stance in recent years by launching non-fungible tokens and advocating for domestic Bitcoin mining. Meanwhile, the Democratic campaign has largely remained silent on digital assets, with no clear position outlined during the party’s convention in Chicago. President Joe Biden has come under withering criticism from the crypto community for letting his market regulators see-saw on crypto regulations.

The Impact Research study also found that a fifth of the voters in key swing states consider cryptocurrency a significant issue in the upcoming election. Among younger voters, interest in crypto is even higher. In Arizona, 88% of crypto owners under 44 believe the financial system requires reform, with nearly 30% advocating for a complete overhaul.

Additionally, 61% of crypto owners under 35 in five key battleground states expressed enthusiasm for candidates who support the industry.

Crypto policy is expected to be a focus in the lead-up to November as campaigns are forced to adapt to the concerns of this younger, diverse voting base.

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K9 Finance Exceeds Expectations, Secures Major Milestone With Global CEX Integration

Gushiken Yona — Tue, 02 Jul 2024 10:18:53 +0000

K9 Finance has shattered expectations by securing a major integration with global cryptocurrency exchange giant Coinbase. This landmark achievement not only marks a significant milestone in the project’s roadmap but also demonstrates the team’s ability to surpass their ambitious goals.

Earlier this week, K9 Finance took to X (formerly Twitter) to announce the integration of $KNINE with Coinbase Wallet. In its post, the team highlighted the enhanced ease and accessibility this integration provides for $KNINE holders, who can now manage their tokens directly within Coinbase Wallet.

The integration with Coinbase Wallet comes on the heels of a series of impressive achievements for K9 Finance. The project has not only met its initial goals but has exceeded them in several areas.

K9 Finance has not only achieved but exceeded several significant milestones. The $KNINE token is now live on the testnet, with the validator also active on the testnet. Additionally, $KNINE has been deployed on ShibariumNet, and the end-to-end product is fully operational on the testnet.

The token has also been listed on three major exchanges: CoinW, LBank Exchange, and WEEX Official. These listings have significantly increased the token’s visibility and accessibility, allowing a broader range of users to trade and invest in $KNINE.

K9 Finance has established a Shibarium partner program with WEEX Exchange and conducted six successful DAO votes, setting budgets, tax frameworks, and making key decisions. These votes underscore the decentralized and collaborative nature of the K9 Finance ecosystem.

The project has formed strategic partnerships with ETH Toronto and ApeBond, published a research report with Alpha Sigma Fund, and has been featured on national television twice. These accomplishments have substantially boosted K9 Finance’s credibility and visibility in the DeFi space.

In a move to honor Ethereum co-founder Vitalik Buterin, K9 Finance burned 410 million $KNINE tokens. The project has also opened its whale chat to holders with 400 million $KNINE, offering monthly perks to these significant stakeholders.

K9 Finance has hosted the first-ever Spaces event with Shibtoken, created marketing partnerships with top industry leaders in DeFi, and launched TikTok and Facebook campaigns. The project has established Vietnamese and Brazilian K9 Unit communities to expand its global reach.

$KNINE has been integrated into more than 12 data platforms, including Ledger and Trezor hardware wallets, and its circulating supply has been verified on CoinMarketCap, CoinGecko, and DEXTools. Additionally, the K9 DAO treasury has been allocated to liquid staking and lending products, and the project has purchased a significant amount of $BONE.

K9 Finance pseudonymous founder and developer Buzz recently expressed his satisfaction with the team’s progress in Q2, stating on Twitter that they “crushed it” for the $KNINE DAO. He also revealed the next step in their roadmap: deploying their developments to the front end for the K9 community, also known as the K9Unit.

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Coinbase Secures Landmark Deal with U.S. Marshals Service for Crypto Custody and Trading

Gushiken Yona — Mon, 01 Jul 2024 16:38:31 +0000

The U.S. Marshals Service (USMS), a division of the U.S. Department of Justice tasked with asset forfeiture, has selected Coinbase Prime as its preferred custodian and trading partner for its “Class 1” (large cap) digital assets. This landmark decision marks a significant step in the growing acceptance and institutional adoption of cryptocurrencies.

The USMS initiated a competitive due diligence process earlier this year, evaluating various solutions for managing and disposing of substantial quantities of popular cryptocurrencies, as announced in March by the Asset Forfeiture Division (AFD). The goal was to streamline custody, management, and disposal processes while diversifying the types of cryptocurrencies handled under government forfeiture programs. Coinbase Prime’s robust infrastructure, proven track record, and ability to securely handle large-scale crypto operations ultimately led to its selection as the USMS’s trusted partner.

“The U.S. Marshals Service (USMS) department of Justice (DOJ), on behalf of the Asset Forfeiture Division (AFD) has a requirement for managing and disposing of large quantities of popular cryptocurrency assets, known as Class 1 cryptocurrencies. This will require the use of multiple, industry leading, storage and liquidation techniques employed in a manner that is professional, lawful, and consistent with Department and USMS policy. This contract will also streamline custody, management, and disposal processes for cryptocurrency assets while allowing for the diversification of the type of cryptocurrency assets that can be managed and disposed of under the Government’s forfeiture programs,” the agency said in March.

Coinbase’s relationship with law enforcement agencies dates back to 2014, when it established its law enforcement program. “Coinbase works with every major U.S. federal, state, and local law enforcement agency, as well as international agencies on every continent. Growing the cryptoeconomy means promoting safe and efficient markets, and these partnerships are critical to our mission,” the crypto company said in its latest blog.

Coinbase Prime, the institutional arm of the exchange, has become the platform of choice for many institutions and large holders of digital assets since its launch three years ago. Notably, it serves as the primary partner for a majority of spot crypto ETFs, further demonstrating its expertise in the institutional crypto market. As of March 31, 2024, Coinbase safeguarded $330 billion in assets and recorded $256 billion in institutional trading volume in Q1 2024, solidifying its position as a leader in the institutional crypto space.

The USMS contract represents a major milestone for Coinbase, demonstrating its growing influence and recognition in the institutional crypto market. However, the company also faces ongoing regulatory challenges, notably a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June 2023.

The SEC accused Coinbase of violating federal securities laws by offering trading and staking services to the general public and operating Coinbase Wallet as an unregistered brokerage. Despite this ongoing legal battle, Coinbase’s selection by the USMS highlights the increasing acceptance and adoption of cryptocurrencies by government agencies and institutional investors.

This partnership signals a growing recognition of the legitimacy and potential of cryptocurrency and could pave the way for further collaboration between the public and private sectors in navigating the evolving regulatory landscape of cryptocurrencies.

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Uncle Sam’s Crypto Shuffle: Coinbase is Illegal… But Hold My Bitcoin

Gushiken Yona — Sat, 29 Jun 2024 14:15:38 +0000

Buckle up, crypto fam! Last June, the U.S. government pulled off a regulatory hat trick that would make a magician blush. First, the SEC slapped Coinbase with charges for operating as an unregistered securities exchange, broker, and clearing agency. Then, they doubled down on the accusation, highlighting Coinbase’s crypto staking service as equally illicit. But wait, there’s a twist!

Uncle Sam, in all his wisdom, then turned around and made Coinbase his Bitcoin banker! Yes, you read that right. The same company accused of raking in billions through “unlawful” activities is now trusted with safeguarding the government’s own crypto trove.

This is like your parents grounding you for sneaking out, then asking you to babysit your younger siblings. Makes total sense, right?

So, what’s the deal? Is this the government’s way of saying, “We hate the game, not the player?” Or is it a strategic power play, using Coinbase’s expertise while maintaining a tough regulatory stance?

Questions to ponder, dear crypto enthusiasts:

Does the government’s use of Coinbase inadvertently legitimize their operations?
Could this be a Machiavellian tactic to control the crypto narrative while staying ahead of the curve?

One thing’s for sure: the hypocrisy is thicker than a Bitcoin whale’s wallet. This saga raises more red flags than a communist convention.

What’s the endgame, Uncle Sam? Are you playing 4D chess while the rest of us are still trying to figure out tic-tac-toe?

Sound off in the comments, crypto community! Let’s untangle this web of contradictions and see where this crazy train is headed.

Ready for the next act? Let’s keep riding this rollercoaster to the moon and back!

The post Uncle Sam’s Crypto Shuffle: Coinbase is Illegal… But Hold My Bitcoin first appeared on The Shib Daily.

Bullish: Shiba Inu Soars to New Heights with Upcoming Perpetual Futures Listing by Crypto ETF Custodian

Gushiken Yona — Fri, 24 May 2024 03:07:13 +0000

Shiba Inu (SHIB), the popular meme-based cryptocurrency, is set to gain significant market traction as a renowned crypto ETF custodian announced its latest perpetual futures listing.

This latest move by , Coinbase, which includes support for SHIB along with other crypto assets, is anticipated to boost SHIB’s visibility and trading volume.

Milestone Announcement

In a celebratory X post on Thursday, Coinbase, one of the world’s largest cryptocurrency exchange platforms by trading volume, marked its 50th perpetual futures listing. The announcement stated, “Celebrating our 50th perpetual futures listing with man’s best friend, the dog. We are adding support for $FLOKI, $BONK, & $SHIB perpetual futures on Coinbase Advanced. The opening of 1000FLOKI-PERP, 1000BONK-PERP, & 1000SHIB-PERP markets will begin on or after 9:30 a.m. UTC 30 MAY.”

Celebrating our 50th perpetual futures listing with man's best friend, the dog.

We are adding support for $FLOKI, $BONK, & $SHIB perpetual futures on Coinbase Advanced

The opening of 1000FLOKI-PERP, 1000BONK-PERP, & 1000SHIB-PERP markets will begin on or after 9:30am
UTC 30… pic.twitter.com/WohRcMmIFM
— Coinbase Traders (@coinbasetraders) May 23, 2024

Boosting Market Visibility and Credibility

The listing of Shiba Inu perpetual futures on Coinbase is expected to have several positive impacts on the cryptocurrency. Firstly, it significantly increases SHIB’s market visibility. Being featured on a prominent platform like Coinbase, especially for perpetual futures, draws attention from a broader audience, including both institutional and retail investors, thereby enhancing SHIB’s credibility and legitimacy.

Enhanced Liquidity and Market Depth

Enhanced liquidity is another key benefit. Perpetual futures often attract high trading volumes, contributing to increased liquidity for SHIB. This increased liquidity makes it easier for traders to execute large transactions without significantly impacting the price and adds market depth, leading to more stable prices and reduced volatility.

Additionally, the futures market can attract new investors who are interested in derivative trading and leveraging their positions. This diversification of the investor base provides existing investors with tools to hedge their positions, effectively managing risk.

Facilitating Better Price Discovery

The introduction of perpetual futures also facilitates better price discovery. The futures market reflects collective market expectations about SHIB’s future price movements, contributing to a more efficient market.

This can mitigate the impact of speculative trading on the spot market, resulting in more stable price dynamics. Furthermore, the availability of leverage in perpetual futures can amplify potential returns, attracting more active trading and investment in SHIB, while also allowing sophisticated traders to manage and mitigate risks associated with their spot market holdings.

Signifying Market Maturity

Moreover, the listing signifies the maturing of the SHIB market, indicating it has achieved a level of acceptance and stability required for derivative trading. This can lead to wider adoption and integration into more trading platforms and products. Lastly, being included in advanced trading products like perpetual futures helps SHIB remain relevant and competitive in the rapidly evolving cryptocurrency market. The excitement and potential profitability associated with futures trading can also attract new members to the SHIB community, fostering growth and engagement.

The listing of SHIB perpetual futures on Coinbase is poised to boost its visibility, liquidity, and market participation, providing new opportunities for investors to engage with the cryptocurrency in a more dynamic and strategic manner. As SHIB continues to gain traction, this move could mark a significant milestone in its journey toward greater market integration and investor acceptance.

The post Bullish: Shiba Inu Soars to New Heights with Upcoming Perpetual Futures Listing by Crypto ETF Custodian first appeared on The Shib Daily.

Massive BONE Boost: Coinbase Predicted To List Shibarium’s Gas Fee Token This Year

Gushiken Yona — Wed, 17 Apr 2024 14:27:31 +0000

Bone ShibaSwap (BONE), the governance token of Shiba Inu’s decentralized exchange (DEX) ShibaSwap and the official gas fee token of the Shibarium blockchain, stands poised for a significant uptick this year, fueled by the latest forecast from a reputable crypto price tracker.

Just days after forecasting that BONE would secure a listing on Binance, one of the largest cryptocurrency exchange platforms by trading volume, Coinpedia Markets, a prominent crypto-tracking platform, has made another bold prediction: Bone ShibaSwap (BONE) is poised to be listed by Coinbase, one of the world’s leading crypto exchanges before the year concludes.

In its latest tweet, Coinpedia Markets not only shared a list of potential crypto assets that could join Coinbase’s roster this year but also provided insightful reasons behind the anticipated listing.

Top 10 #Cryptocurrencies poised to be listed on #Coinbase in 2024

1. Kaspa ( $KAS)
2. Toncoin ( $TON)
3. Dogwifhat ( $WIF)
4. Catcoin ( $CAT)
5. BabyDogeCoin ( #BABYDOGE)
6. Bone ShibaSwap ( $BONE)
7. Bitgert ( $BRISE)
8. CoqInu ( $COQ)
9. NEO ( $NEO)
10. Realio Network (… pic.twitter.com/WwQ7bDX94A
— Coinpedia Markets (@MarketCoinpedia) April 17, 2024

The platform outlined several compelling reasons behind their prediction for BONE’s listing on Coinbase. Firstly, BONE serves as the utility token for Shibarium, Shiba Inu’s Layer-2 project built on the Ethereum ecosystem. Its multifaceted role within Shibarium, facilitating governance, mining, and staking functionalities, positions BONE as a cornerstone asset within the platform’s infrastructure.

Moreover, BONE’s integration with D3 Global, a reputable DNS domain provider, adds further weight to its potential listing on Coinbase. The recent expansion of payment options to include Shiba Inu and BONE underscores the token’s growing real-world utility and adoption, potentially increasing its appeal to major exchanges like Coinbase.

The exponential growth of the Shibarium network serves as another compelling factor driving speculation around BONE’s Coinbase listing. With an impressive surge in active accounts surpassing 25,800 and a staggering 128.46% increase in transactions, Shibarium’s expanding user base generates substantial demand for BONE as users utilize it to pay gas fees, reinforcing its value proposition to potential exchange platforms.

Furthermore, the fervent demand for a Coinbase listing within the Shiba Inu community cannot be overlooked. As anticipation mounts for fresh growth opportunities and increased market exposure, the community’s vocal support for BONE’s listing on Coinbase adds further momentum to the speculation.

Coinpedia Markets’ double forecast about BONE suggested that the crypto asset could witness a substantial surge in demand and market value, driven by potential listings on major cryptocurrency exchange platforms. If proven accurate, this projection could mark a pivotal moment for BONE, propelling it into the spotlight as a key player within the crypto ecosystem.

With Coinbase’s reputation as a heavyweight in the crypto exchange realm, its potential embrace of BONE could signify a milestone for the token and the broader Shiba Inu ecosystem.

The post Massive BONE Boost: Coinbase Predicted To List Shibarium’s Gas Fee Token This Year first appeared on The Shib Daily.

Coinbase Win, Industry Victory: Court Declares Crypto Not Securities On Secondary Markets

Gushiken Yona — Mon, 08 Apr 2024 11:31:31 +0000

A U.S. court in a pivotal verdict last Friday handed down a decision significantly favoring Coinbase and the cryptocurrency sector at large.

The U.S. Court of Appeals for the Second Circuit declared that cryptocurrencies are not considered securities in secondary market trades, a determination that not only vindicates Coinbase’s operations but may also reshape the regulatory framework for digital assets in the U.S.

Legal Battle Highlights

The case saw plaintiffs Louis Oberlander, Christopher Underwood, and Henry Rodriguez accuse Coinbase of breaching both federal and state securities laws through its cryptocurrency trading activities. Their allegations, spanning a class action suit, targeted the trading of specific tokens on Coinbase between October 8, 2019, and March 11, 2022.

The plaintiffs lodged federal claims pursuant to Sections 5, 12(a)(1), and 15 of the Securities Act of 1933, in addition to Sections 5, 15(a)(1), 20(a), and 29(b) of the Securities Exchange Act of 1934. They also presented claims under the securities statutes of California, Florida, and New Jersey, representing a class action on behalf of individuals nationwide.

Court’s Analysis and Conclusion

A critical point of the court’s analysis was the application of Section 12(a)(1) of the Securities Act, focusing on the sale of unregistered securities. While the court recognized potential liability under this section, it dismissed claims under the Securities Exchange Act due to insufficient evidence of the required transaction-specific contracts for rescission under Section 29.

The examination of Coinbase’s user agreements, which have evolved over time, presented challenges in establishing the specifics of title and privity, essential components of the plaintiffs’ case. The court emphasized the need to pinpoint which user agreement version was applicable, acknowledging that discrepancies among the versions posed significant hurdles to a definitive ruling.

Coinbase’s Response and Industry Implications

Following the ruling, Paul Grewal, Coinbase’s Chief Legal Officer, lauded the clarity brought by the Second Circuit on federal securities law, emphasizing the importance of contracts in the context of secondary trading of digital assets on platforms like Coinbase. This landmark decision is anticipated to bring much-needed regulatory clarity, potentially boosting confidence among institutional and retail investors in the crypto market.

We appreciate the Second Circuit confirming today what is clear under the federal securities law: there's no private liability for the secondary trading of digital assets on exchanges like Coinbase. Why? Because contracts matter. 1/2
— paulgrewal.eth (@iampaulgrewal) April 5, 2024

Moreover, the ruling could serve as a precedent for other regulatory bodies and jurisdictions, possibly ushering in a more unified global regulatory stance on cryptocurrencies. With the SEC’s approach to crypto assets currently under intense scrutiny, this verdict offers a glimmer of regulatory certainty for exchanges and traders navigating the complex landscape of digital asset laws.

The post Coinbase Win, Industry Victory: Court Declares Crypto Not Securities On Secondary Markets first appeared on The Shib Daily.

Crypto Market Regains Footing After Coinbase Outage

Violet Vallaya — Fri, 01 Mar 2024 11:29:59 +0000

The cryptocurrency market faced significant volatility Wednesday as several major exchanges including Coinbase, Robinhood, and Kraken experienced service interruptions. This coincided with a surge in the price of Bitcoin, which reached nearly $64,000 before seeing a sharp drop.

Coinbase Outage Causes Temporary Panic

A technical issue on Coinbase, one of the world’s largest crypto exchanges, led to a temporary display of zero account balances for users. This triggered panic selling, driving the price of Bitcoin down from $64,000 to $59,000 within a 15-minute window, according to The Kobeissi Letter. The fall represented a nearly 9% drop in market value and wiped out approximately $100 billion from BTC’s market capitalization.

This is absolutely insane: The Coinbase, $COIN, crash just erased $100 BILLION of market cap in #Bitcoin in 15 minutes. Between 12:15 PM ET and 12:30 PM ET, Bitcoin fell from $64,000 to $59,000.

This is absolutely insane:

The Coinbase, $COIN, crash just erased $100 BILLION of market cap in #Bitcoin in 15 minutes.

Between 12:15 PM ET and 12:30 PM ET, Bitcoin fell from $64,000 to $59,000.

This was a near 9% swing in 15 minutes right as many Coinbase users began showing… pic.twitter.com/fUcRusrddX
— The Kobeissi Letter (@KobeissiLetter) February 28, 2024

The outage caused widespread disruption and frustration among users, who took to social media to cent their anger and disappointment. However, Coinbase quickly addressed the issue and restored normal services within a short period.

Market Rebounds Despite Exchange Issues

Despite the initial volatility, Bitcoin managed to recover swiftly, regaining its position above the $62,000 mark. As of writing, on Feb. 29, BTC was trading at $62,627.55, a 5.7% increase from the previous day. The market capitalization also rebounded, reaching $1.22 trillion, surpassing the pre-outage level.

Several other major exchanges, including Robinhood and Kraken, also reported service disruptions during this period. The exact cause of these outages remains unclear.

Bitcoin Reaches Near All-Time High Before Pullback

The events unfolded just as Bitcoin was approaching its all-time high, adding further drama to the situation. The leading cryptocurrency had reached a high of $63,913.13 before the price fluctuations began.

As the crypto community grappled with the outage, emotions ran high. Hate comments flooded social media, directed at Coinbase—the platform that faltered during the critical moment. Nevertheless, the market’s swift recovery suggests a growing maturity and resilience within the crypto ecosystem.

The post Crypto Market Regains Footing After Coinbase Outage first appeared on The Shib Daily.

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