Re:Coinbase from YC to DPO
by tingletech on Wednesday April 14, 2021 @06:40PM
(#26813993)
Meet Kevin also did an analysis https://www.youtube.com/watch?v=waTWaNqI23Y
There is no way that Coinbase has a stronger lobbying base than the established financial players. They can get into this game, block it with tighter regs, and dig into their deep base of clients to offer similar products. I don’t see a moat here.
The second largest donor to the Biden campaign was SBF, the CEO of FTX, another crypto exchange. The crypto ecosystem is spending a lot of money on lobbying.
https://www.coindesk.com/cryptocurrency-ceo-donated-second-l...
Re:Coinbase from YC to DPO
by FqOD4xih7Uq6m9Z on Thursday April 15, 2021 @09:11AM
(#26820015)
Established financial players like AXA who invested in Blockstream which controls the development of BTC?
Aren't very high fees antithetical to crypto, also centralization?
Re:Coinbase from YC to DPO
by lovedswain on Wednesday April 14, 2021 @06:21PM
(#26813819)
Antithetical? High fees are all but a feature :)
- Government intervention tends to benefit incumbents.
- Coinbase employs a lot of lawyers [1].
- Coinbase invests a lot in lobbying [2].
- While fees are lowering for international exchanges, those who serve US customers are still able to get away with very high fees.
- People are less sensitive to fees when the assets they are buying are very volatile.
- NYSE serves brokers, that then themselves serve the final clients. Coinbase is able to serve customers directly, thus it can keep all the fees for themselves.
[1] https://news.bloomberglaw.com/business-and-practice/coinbase...
[2] https://seekingalpha.com/news/3679495-square-fidelity-coinba...