But it also fears about Satoshi's revelation and regulation
Coinbase filed for a direct listing on the Nasdaq stock exchange and released their documents for public. You can see the document here :
Interestingly it lists Satoshi Nakamoto as one of the recipients of the public filing and sent a copy to him as shown in the filling. But at the same time it fears, if Satoshi is ever revealed, then it could wreak havoc in the market. It appears Satoshi might have hold to more than 1 million BTC which would be worth more than $30 billion at current market prices. So if that is released to the market, everyone can anticipate what will be the outcome. Here is how they cite it :
our business may be adversely affected if the markets for Bitcoin and Ethereum deteriorate or if their prices decline, including as a result of the following factors:
the reduction in mining rewards of Bitcoin, including block reward halving events, which are events that occur after a specific period of time which reduces the block reward earned by miners;
- the development and launch timeline of Ethereum 2.0, including the potential migration of Ethereum to a proof-of-stake model;
- disruptions, hacks, splits in the underlying network also known as “forks”, attacks by malicious actors who control a significant portion of the networks’ hash rate such as double spend or 51% attacks, or other similar incidents affecting the Bitcoin or Ethereum blockchain networks;
- hard “forks” resulting in the creation of and divergence into multiple separate networks, such as Bitcoin Cash and Ethereum Classic;
- informal governance led by Bitcoin and Ethereum’s core developers that lead to revisions to the underlying source code or inactions that prevent network scaling, and which evolve over time largely based on self-determined participation, which may result in new changes or updates that affect their speed, security, usability, or value;
- the ability for Bitcoin and Ethereum blockchain networks to resolve significant scaling challenges and increase the volume and speed of transactions;
- the ability to attract and retain developers and customers to use Bitcoin and Ethereum for payment, store of value, unit of accounting, and other intended uses;
- transaction congestion and fees associated with processing transactions on the Bitcoin and Ethereum networks;
- the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoins;
- negative perception of Bitcoin or Ethereum;
- development in mathematics, technology, including in digital computing, algebraic geometry, and quantum computing that could result in the cryptography being used by Bitcoin and Ethereum becoming insecure or ineffective; and
- laws and regulations affecting the Bitcoin and Ethereum networks or access to these networks, including a determination that either Bitcoin or Ethereum constitutes a security or other regulated financial instrument under the laws of any jurisdiction.
Given that ETH go hand in hand with BTC, and BTC and ETH constitutes more than 50% portfolio of Coinbase, it could potentially make Coinbase face severe financial crunch.
While everyone is talking about decentralization as the core value of crypto currencies, Coinbase also sees laws and regulations as a threat. It raised an important point - what if the access to these networks are prohibited ?
Given that India is already in the process of putting up regulation to ban crypto , it will be interesting to see how things are going to shape up. Please share your opinions.
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