Home Coinbase What's up with Coinbase? Joshua Henslee shares ideas on a possible disaster – CoinGeek

What's up with Coinbase? Joshua Henslee shares ideas on a possible disaster – CoinGeek

10 min read
Comments Off on What's up with Coinbase? Joshua Henslee shares ideas on a possible disaster – CoinGeek
41

As rumors swirl that Coinbase (NASDAQ: COIN) is going through a liquidity disaster, Bitcoin thought chief Joshua Henslee launched a video summarizing a timeline of occasions and his ideas on what latest strikes imply for the alternate.

A timeline of latest occasions associated to Coinbase

Henslee begins by giving a latest timeline of factual occasions associated to Coinbase earlier than giving his ideas on what could be happening.

April 14, 2021 – This was the date of the Coinbase IPO. The inventory worth hit $381 however didn’t shut at that worth.

November 2021 – BTC hit its all-time excessive above $70,000. On November 9, Coinbase closed at an all-time excessive of $357.

Could 4, 2022 – Coinbase took a loan from Goldman Sachs utilizing BTC as collateral.

Could 9 -11, 2022 – BTC worth dropped $10,000 as a result of TerraLUNA collapse. Coinbase inventory dropped to $53.

Could 12, 2022 – A quarterly disclosure from Coinbase confirmed that buyer funds might be used as property within the occasion of chapter proceedings. CEO Brian Armstrong blamed clients’ “irrationally pessimistic” viewpoints for the $430 million loss the corporate endured in Q1, 2022.

June 2, 2022 – Coinbase suspended all hiring and rescinded lively accepted presents, leaving lots of its would-be staff jobless.

June 12, 2022 – Celsius Community announced the suspension of withdrawals, inflicting BTC to fall one other $10,000.

June 14, 2022 – Coinbase laid off 18% of its staff immediately and locked them out of firm techniques in a single day.

June 29, 2022 – Coinbase prolonged staking applications to Solana at 3.85% APY. Additionally, on June 29, a Twitter thread confirmed Circle has been shedding cash, hinting that USDC is probably not backed 1:1.

July 1, 2022 – Coinbase introduced that efficient July 13, USD/USDC swimming pools shall be merged for buying and selling.

July 19, 2022 – Coinbase quickly paused its U.S. associates program.

July 20, 2022 – An organization weblog submit acknowledged that it had no publicity to Three Arrows Capital (3AC) or Voyager and that belongings are backed 1:1.

Henslee’s interpretation of this sequence of occasions

Giving his opinion on these occasions, Henslee says that seeing it in a timeline like this leads him to consider “issues aren’t wanting good for Coinbase.” He believes the agency has cash issues. To him, how Coinbase minimize workers so shortly and locked them out of its techniques with out discover signifies monetary issues.

Henslee additionally thinks it’s suspicious how Coinbase received a mortgage from Goldman Sachs proper earlier than the LUNA/UST implosion. He once more reiterates his level that nothing new has been created within the business. It was imagined to be about eradicating trusted intermediaries, but right here we’ve one of many largest exchanges consorting with the identical banks chargeable for the 2008 monetary disaster.

Henslee goes on to report that he’s seeing many tales on Reddit and elsewhere claiming that folks can’t withdraw. He isn’t positive whether or not to belief them since rival exchanges have an incentive to submit this kind of factor, however mixed with the opposite occasions right here, it’s worrying for Coinbase customers.

Henslee then touches on one other level about Bitcoin SV. Coinbase just lately suspended BSV withdrawals, main him to marvel why they halted them once they weren’t imagined to have BSV within the first place. He says Coinbase does have BSV and has had it because the break up occurred. Again then, they held it for a number of months earlier than finally letting folks withdraw. Now, customers can’t get their BSV out attributable to unsubstantiated “transaction processing points.”

Wrapping up, Henslee wonders if these occasions are in any manner linked to authorized motion taken by Dr. Craig Wright against Coinbase and Kraken just lately. He’s suing them for passing off BTC as Bitcoin. Henslee reminds us that the data launched in the course of the Coinbase IPO acknowledged that the revelation of Satoshi Nakamoto was an existential threat to their enterprise mannequin.

Key takeaways: Coinbase appears to be like to be in bother

Henslee believes Coinbase is in monetary bother. He appears to be like objectively on the sequence of occasions outlined on this video and concludes that they reek of cash points, however we’ll have to attend and see what occurs.

Positing a closing idea earlier than bringing the video to a detailed, Henslee says that in case you had been in opposition to the business, you possibly can “bomb the exits” and take down fiat exchanges like Coinbase and Kraken, leaving everybody trapped in Tether on rogue exchanges like Binance. He’s unsure if that’s what’s taking place, however it’s one potential situation.

Comply with CoinGeek’s Crypto Crime Cartel sequence, which delves into the stream of teams from BitMEX to BinanceBitcoin.comBlockstreamShapeShiftCoinbaseRipple,
EthereumFTX and Tether—who’ve co-opted the digital asset revolution and turned the business right into a minefield for naïve (and even skilled) gamers out there.

New to Bitcoin? Take a look at CoinGeek’s Bitcoin for Beginners part, the last word useful resource information to be taught extra about Bitcoin—as initially envisioned by Satoshi Nakamoto—and blockchain.

Adblock test (Why?)




Source link

Load More Related Articles
Load More By admin
Load More In Coinbase
Comments are closed.

Check Also

Moscow Trade Suggests Issuing Crypto Receipts for These Afraid of Blockchain – Exchanges Bitcoin Information – Bitcoin Information

The Moscow Trade has proposed to legalize the issuance of receipts for digital monetary be…