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afaik coinbase is just an exchange, so hopefully they didn't speculate on crypto derivatives with 0 risk management like 3AC did
by bsamuels 4y ago
afaik coinbase is just an exchange, so hopefully they didn't speculate on crypto derivatives with 0 risk management like 3AC did
- FabHK 4y agoSure, but if there's no more "number goes up", and people stop trading crypto, then Coinbase's revenue vanishes.
- cbm-vic-20 4y agoThey get a cut in both directions.
- mertd 4y agoThat's why the parent emphasized "trading stops", as in there is no trading in any direction.
- dwater 4y agoBoth directions meaning buying and selling, not active market and dead market like the parent comment is talking about. What's their cut of trades on Terra today?
- dpbriggs 4y agoTheir revenue is proportional to volume. Which we can expect to eventually plummet as people are skittish to enter and happy to exit.
- ineedasername 4y agoAnd their revenue is dollar denominated. Even if the volume of coins traded remained the same, if the dollar-denominated value of those coins drop then so does revenue.
- adrr 4y agoI heard exchanges hold a bunch of the stable coins in lieu of holding actual real currency. Not sure if the statement is true or not.
- no_butterscotch 4y agoCoinbase has Coinbase Ventures, for which they invest in many crypto projects.