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I suspect the plan is to raise tons of fiat then pump their BTC holdings via grayscale.
by zionic 6y ago
I suspect the plan is to raise tons of fiat then pump their BTC holdings via grayscale.
- kinghajj 6y agoMy god, that would be amazing. 1. Coinbase raises money from the IPO. 2. Coinbase takes some of that money and gives it to Grayscale. 3. Grayscale uses the money to buy cryptocurrency... On Coinbase! Not only do Coinbase shares appreciate from the increased value of assets on their balance sheet, but they earn some of their money back from fees, too. Just make sure that steps #1 and #2 have some delay, after any lock-up period. And since Grayscale can only divest from its funds for fees and doesn't allow redemption, more cryptocurrency tokens get "locked" in the funds indefinitely, unable to affect the spot price.
- deeeeplearning 6y agoSo what you're saying is Coins go up?
- Bombthecat 6y agoSo, just like a stock buy back, just a bit more complicated..
- kgc 6y agoThey don't need Grayscale. They could just buy BTC themselves.
- devops000 6y agoWe invented BTC for not having a central bank, now the Central Bank could be Coinbase.
- lostmsu 6y agoBut it is not central in any way.
- xiphias2 6y agoThey are thenselves institutional BTC holders, so I'm not sure if they need to outsource it. Microstrategy is using Coinbase.
- zionic 6y agoThat's my point exactly. Traditional stock market buys tons of coinbase cash -> coinbase uses said cash to market-buy BTC with bots driving the price up -> BTC/their crypto of choice is now worth far more. If the market follows their run they end up making far more than they reinvested.
- beaner 6y agoYeah but what does grayscale have to do with it? Doesn't make sense.
- jcliff 6y agonot only that, but they custody grayscale's btc. they definitely don't need grayscale.