Coinbase in Free Fall & Getting Sued by SEC

[BionicTiger]

SEC chair Gary Gensler on Bloomberg this morning stated COIN refuses to be transparent about where assets are custodied, that your assets aren’t safe and that they are comingling assets between their hedge fund and trading platform all while using customer data to trade against those same customers with their hedge fund.

Wants Coinbase to be “permanently restrained and enjoined” and says they are operating “an extensive web of deception.”

 

[TigerFlow]

Crypto gonna crypto.

 

[BionicTiger]

Crypto gonna crypto.

Yup. The one publicly traded exchange, and even they won’t cooperate with the SEC. It would mean the exposure of (more) systemic fraud and further collapse for another major player in the space. @Hammerdawg.NEAR you still all in on digital POGs?

 

[WinstonW101]

Sec sec sec sec sec !!!!

 

[TigerDeal]

Coinbase should put Hunter Biden on the payroll and the problems would go away.

 

[MillerHighLife21]

Will be very interesting to watch. I still kick myself for not buying in when they were down to $25.

Conspiracy theory: Is a side effect of the government trying to minimize inflation impact of the national debt by scaring people away from the most legitimized trading platform to get into BTC/ETH? Debt limit increased, days later Binance and Coinbase sued by SEC?

 

[sloanMB]

Charting the Number of Failed Crypto Coins, by Year (2013-2022)

We visualize over 2,000 crypto failures by year of death, and year of project origin. See how and why crypto projects die in these charts.

www.visualcapitalist.com

 

[BionicTiger]

Will be very interesting to watch. I still kick myself for not buying in when they were down to $25.

Conspiracy theory: Is a side effect of the government trying to minimize inflation impact of the national debt by scaring people away from the most legitimized trading platform to get into BTC/ETH? Debt limit increased, days later Binance and Coinbase sued by SEC?

I doubt it. Lawsuits have been in the works for a little while, and inflation is actually a net benefit since it reduces the real value of outstanding fixed rate debt obligations. Plus, while much of the tax code and some implicit obligations (like social security) are indexed to inflation to some extent, effective income tax rates are not which means income tax burden increases in correlation to inflation. And, over time, the impact to capital formation is basically nil, since higher tax burden exercising downward pressure on capital formation would be offset by the decrease in real value of debt encouraging capital formation.

 

[MillerHighLife21]

inflation is actually a net benefit since it reduces the real value of outstanding fixed rate debt obligations

Only a net benefit to people who have a lot of outstanding debt. People who have avoided debt and saved money only lose with inflation.

 

[Dungeon09]

Only a net benefit to people who have a lot of outstanding debt. People who have avoided debt and saved money only lose with inflation.

He’s talking about the federal government. They have a lot of debt.

 

[BionicTiger]

Only a net benefit to people who have a lot of outstanding debt. People who have avoided debt and saved money only lose with inflation.

Yeah. I’m talking about the federal government. Leverage is a tool though. Like any tool, you need to use it properly or you’re going to get hurt. But, it’s a tool.

That’s why racing to pay off mortgages at 3% and/or holding a lot of cash isn’t always the smartest thing.

 

[BasedCamp]

Charting the Number of Failed Crypto Coins, by Year (2013-2022)

We visualize over 2,000 crypto failures by year of death, and year of project origin. See how and why crypto projects die in these charts.

www.visualcapitalist.com

Now do the same with failed businesses.

 

[Hammerdawg.NEAR]

The SEC and Gensler’s rampant corruption has been put on blast by Judge Torres in the SEC vs Ripple case, and this is just more of it. Everyone with a Luke warm IQ knew this was coming.

Just more federal cronyism and overreach that people like OP are ok with because it gets one over on the digital asset class

A little her derp logic employed here would allow anyone to realize the SEC gave Coinbase the green light for the IPO, knowing full well the business they were in

 

[BionicTiger]

Now do the same with failed businesses.

Oooof.

 

[Hammerdawg.NEAR]

 

[BionicTiger]

The SEC and Gensler’s rampant corruption has been put on blast by Judge Torres in the SEC vs Ripple case, and this is just more of it. Everyone with a Luke warm IQ knew this was coming.

Just more federal cronyism and overreach that people like OP are ok with because it gets one over on the digital asset class

A little her derp logic employed here would allow anyone to realize the SEC gave Coinbase the green light for the IPO, knowing full well the business they were in

Except asset managers that also operate as exchanges, custodians, brokers, managers, and clearing houses have to be registered as each of those independently. You can’t reap the benefits of trading securities by privatizing those benefits and socializing or outright ignoring the risk. And, commingling funds is a massive issue. I’d go to jail for that.

Additionally, allowing an IPO to go forward is not an endorsement of the business or its practices. It is simply an acknowledgement that appropriate filings are complete and all requisite information is included and publicly available. The SEC doesn’t endorse companies or their operations.

 

[Chevaker]

Closed my account with Coinbase last year. Don't know if they are crooked, but their customer support sucks.

Crypto definitely going through growing pains. Another feasible theory is that the govt. is clearing the deck for their own digital currency.

 

[Dabofan]

Bye Bye Crypto. I hope many of you haven't lost your tails on that crap. Should be called Vaporware currency. Bitcoin is on deck.

 

[willy11b]

I guess I should withdraw my $17.42 worth of Cardano

 

[Hammerdawg.NEAR]

Except asset managers that also operate as exchanges, custodians, brokers, managers, and clearing houses have to be registered as each of those independently. You can’t reap the benefits of trading securities by privatizing those benefits and socializing or outright ignoring the risk. And, commingling funds is a massive issue. I’d go to jail for that.

Additionally, allowing an IPO to go forward is not an endorsement of the business or its practices. It is simply an acknowledgement that appropriate filings are complete and all requisite information is included and publicly available. The SEC doesn’t endorse companies or their operations.

Well I guess if Coinbase is operating illegally and good guy Gary actually has our best interest in mind the courts will sort it out, Coinbase will move overseas like the rest of the industry, and that’s that

 

[Hammerdawg.NEAR]

Bye Bye Crypto. I hope many of you haven't lost your tails on that crap. Should be called Vaporware currency. Bitcoin is on deck.

What exactly do you think is going to happen to Bitcoin

 

[TimmyBobby]

Crypto seems like an unregulated pyramid attack on low to high mid income American citizens.

 

[BionicTiger]

What exactly do you think is going to happen to Bitcoin

Eventually? It will fail and be worthless.

 

[Hammerdawg.NEAR]

Eventually? It will fail and be worthless.

Ok

 

[BionicTiger]

 

[jakefest]

SEC chair Gary Gensler on Bloomberg this morning stated COIN refuses to be transparent about where assets are custodied, that your assets aren’t safe and that they are comingling assets between their hedge fund and trading platform all while using customer data to trade against those same customers with their hedge fund.

Wants Coinbase to be “permanently restrained and enjoined” and says they are operating “an extensive web of deception.”

Coinbase were acting as maker/takers on their own exchange at one point, not sure why that wasn't a red flag for many before now.

I'm betting this is going to result in the regulated exchanges buying up Coinbase, Binance etc to push crypto centrally to regulated venues. They have been trying to force darkpools to do the same for the last 7 years or so but the largest institutions aren't willing to cooperate on the darkpool front.

The challenge the exchanges face is more than 40% of flow is being executed away from the lit venues, ie crossing, internalization etc. That's why you see NYSE, NASDAQ etc raising data and technology costs each year.....have to account for the decrease in transaction revenue.

My guess is the SEC have some legitimate concerns over the unregulated nature and lack of accountability but also are trying to pave the way for a central bank digital currency. It's coming and if they allow for decentralization they can't control the value of the coin (ie, the dollar)

 

[jakefest]

Eventually? It will fail and be worthless.

I think it will get acquired by a larger exchange. The reality is the folks that make up most of the liquidity for equities, futures, options etc all trade crypto.......they don't invest in crypto but they trade it. Huge difference between long crypto strategies and go home flat crypto strategies.

There is a ton of money here, can't see it going away but do see a NYSE or a CBOE lobbying to buy them out at a low valuation with the help of the SEC (lawsuits) to bring it into something the SEC can govern. NYSE makes money, SEC makes their lives easier.

 

[OleFastball]

nm

 

[OleFastball]

Eventually? It will fail and be worthless.

Strongly disagree, but I guess that’s why we have markets.

 

[jakefest]

Closed my account with Coinbase last year. Don't know if they are crooked, but their customer support sucks.

Crypto definitely going through growing pains. Another feasible theory is that the govt. is clearing the deck for their own digital currency.

Their choice to host the matching engine on AWS instead of private collocated cloud was a terrible mistake for them. AWS aren't ready for the nuances of managing triple digit millions of transactions, deposits, drawdowns, market data, etc.

 

[BionicTiger]

I think it will get acquired by a larger exchange. The reality is the folks that make up most of the liquidity for equities, futures, options etc all trade crypto.......they don't invest in crypto but they trade it. Huge difference between long crypto strategies and go home flat crypto strategies.

There is a ton of money here, can't see it going away but do see a NYSE or a CBOE lobbying to buy them out at a low valuation with the help of the SEC (lawsuits) to bring it into something the SEC can govern. NYSE makes money, SEC makes their lives easier.

I think digital currencies and some crypto will exist in future. BTC won’t. And, agree that COIN will become an acquisition for someone. It won’t happen until regulation frameworks are significantly less murky though.

 

[jakefest]

Was it Pelosi?