5 ms·

Well, there goes crypto. With this precedent, Coinbase is next. Bitcoin will probably survive, but the landscape will change radically.

capableweb 3y ago
Coinbase and Binance acted/acts very differently. Binance basically throw their hands in the air saying "well, whatever, it's illegal so whatever we do is illegal, so lets just do whatever" while Coinbase been acting as they are trying to follow the law as much as they could, while still operating an exchange. Not saying one is more illegal/legal than the other, but they certainly acted differently.
- tararara 3y ago
  Do you have any insights into why they act like this? Is it the founders vision?
  - aikinai 3y ago
    That’s the strategy they explicitly chose. Probably because of the founder’s preference or vision. They wanted to position themselves as the legal crypto exchange which is a great differentiation in that market.
    - ignoramous 3y ago
      > position themselves as the legal crypto Not saying that it couldn't be, but the greatest trick the devil ever pulled was convincing the world he didn't exist.
  - px43 3y ago
    Coinbase acts like this because it was founded from day one to serve the US market, and everything that it has done has been to invest millions of dollars a year into complying with US law. Coinbase has only in the past couple months, started expanding internationally so they don't die immediately in case the US regulatory system decides to cannibalize them. Binance acts like this because complying with US law is ridiculously expensive. Binance cares most about serving the remaining 95% of humanity that does not live in the US. Maybe seven years or so ago they really started shifting things around so their US services are expendable, and could be jettisoned at any moment if US regulators start biting. Both are entirely reasonable strategies, and it's why I, as a US citizen, moved everything I had in Binanace away 7 or so years ago, and only ever do anything custodial with Coinbase. Back in the before times, I had accounts across multiple global exchanges so I could run arbitrage bots etc, but now it's basically Coinbase or nothing when it comes to custodial exchanges.
    - thinkmassive 3y ago
      Binance is relatively new, it was founded only 6 years ago, in 2017.
    - tacticus 3y ago
      > Binance cares most about serving the remaining 95% of humanity that does not live in the US. That totally explains why they put so much effort into catering for US whales.
      - bioemerl 3y ago
        Yeah, You don't do regular trade with the other 95% without the approval of the United States financial system, yay global hegemony.
- allears 3y ago
  Yes, but Coinbase deals in lots of tokens that the SEC claims are "securities," so their business model may not survive.
  - candiddevmike 3y ago
    I don't think it's possible to make money like a traditional bank or brokerage with cryptocurrency, none of it is sticky and the users can go around you. Thus the "security but not a security" get rich quick FOMO schemes.
dumpsterdiver 3y ago
[flagged]
- predictabl3 3y ago
  [flagged]
  - EdwardDiego 3y ago
    "Have fun staying poor, nocoiner" is probably one reason you see such vocal dislike. The blatant criminality is likely another. But I'm just a nocoiner, so you know.
    - predictabl3 3y ago
      > "Have fun staying poor, nocoiner" is probably one reason you see such vocal dislike. I literally can't name a single time I've ever, ever seen that sentiment expressed on HN. And the irony... but at least the nocoiners have at least stopped insisting that everyone in crypto is an idiot that doesn't know what they're doing. (aka, projecting). At least outwardly anyway, from what I can tell. I love that my OG comment is flagged. Really just says everything, it wasn't even remotely combatative. Just add it to the list of things you can't really talk about on HN. Bitcoin suxors amiright?!
  - striking 3y ago
    I've actually thought about this myself, and have come to a couple of somewhat opposing conclusions: * Crypto is uniquely capitalist and to some extent uniquely exploitative technology. Given how minimally used it appears to be for actually worthwhile things and how many people are getting rugpulled, just how much damage is actually being done, I can see why there are so many people who consider it to occupy its own separate tier of capitalist exploitation. * As a tech worker, I hate thinking about how what I do is itself exploitative and capitalist, and the crypto ecosystem and community makes me feel better about it because at least I'm not that bad. I assume a lot of folks would never admit to feeling this way, but probably do on some level.
ren_engineer 3y ago
all of this conveniently happening right before FedNow goes live in July and after the debt ceiling got suspended until 2025
- devmor 3y ago
  Similarly, you conveniently ignoring the past 20+ months of high profile crypto investigations, shutdowns, arrests, lawsuits and seizures to pretend there's a sudden conspiracy.
- politician 3y ago
  Don’t forget the CBDC reports that are coming due about now.
- dontupvoteme 3y ago
  + Dedollarization.
Alupis 3y ago
For the casual bystander with crypto parked in Coinbase vaults, and maybe some eth staked - what's the consensus among those more knowledgeable? Move assets now or just stay the course? It doesn't look like anyone is going to outright lose assets - but perhaps not the able to withdraw for some period of time?
- pabloarteel 3y ago
  One of the few benefits of crypto is to "be your own bank" and not needing 3rd party permission to move your assets. Withdraw to cold storage, dump everything except bitcoin, and of course, do your own research.
  - ceroxylon 3y ago
    ...and send a test transaction before you send it all.
    - deleted 3y ago
      [deleted]
- EscapeFromNY 3y ago
  Self-custody is the way to go. Send your assets to a private key you control. Not your keys, not your coin. I sleep like a baby no matter what sketchy exchange is in the news any given week.
  - tortilla 3y ago
    Exactly! My grandpapa drilled it into me at a very young age. “Tortilla! Not your keys, not your coin! Eat your vegetables.”
  - Alupis 3y ago
    Yes, but for regular people, like myself, being responsible for those keys is a pretty sizable burden. I didn't speculate on crypto because I hated centralized banking...
unyttigfjelltol 3y ago
Keep in mind this is a TRO, and the judge only has heard from the SEC so far.[1] [1] https://www.americanbar.org/groups/litigation/committees/woman-advocate/practice/2018/preliminary-injuction-relief/ https://www.americanbar.org/groups/litigation/committees/wom...
WhereIsTheTruth 3y ago
Coinbase is american based by ex WallStreet people, I'm pretty sure this is all coordinated to help Coinbase lead the digital USD revolution, fishy buisiness as usual.. https://www.federalreserve.gov/central-bank-digital-currency.htm https://www.federalreserve.gov/central-bank-digital-currency... Another case of Alstom or even BlackBerry..

capableweb 3y ago

Coinbase and Binance acted/acts very differently. Binance basically throw their hands in the air saying "well, whatever, it's illegal so whatever we do is illegal, so lets just do whatever" while Coinbase been acting as they are trying to follow the law as much as they could, while still operating an exchange. Not saying one is more illegal/legal than the other, but they certainly acted differently.

tararara 3y ago
Do you have any insights into why they act like this? Is it the founders vision?
- aikinai 3y ago
  That’s the strategy they explicitly chose. Probably because of the founder’s preference or vision. They wanted to position themselves as the legal crypto exchange which is a great differentiation in that market.
  - ignoramous 3y ago
    > position themselves as the legal crypto Not saying that it couldn't be, but the greatest trick the devil ever pulled was convincing the world he didn't exist.
- px43 3y ago
  Coinbase acts like this because it was founded from day one to serve the US market, and everything that it has done has been to invest millions of dollars a year into complying with US law. Coinbase has only in the past couple months, started expanding internationally so they don't die immediately in case the US regulatory system decides to cannibalize them. Binance acts like this because complying with US law is ridiculously expensive. Binance cares most about serving the remaining 95% of humanity that does not live in the US. Maybe seven years or so ago they really started shifting things around so their US services are expendable, and could be jettisoned at any moment if US regulators start biting. Both are entirely reasonable strategies, and it's why I, as a US citizen, moved everything I had in Binanace away 7 or so years ago, and only ever do anything custodial with Coinbase. Back in the before times, I had accounts across multiple global exchanges so I could run arbitrage bots etc, but now it's basically Coinbase or nothing when it comes to custodial exchanges.
  - thinkmassive 3y ago
    Binance is relatively new, it was founded only 6 years ago, in 2017.
  - tacticus 3y ago
    > Binance cares most about serving the remaining 95% of humanity that does not live in the US. That totally explains why they put so much effort into catering for US whales.
    - bioemerl 3y ago
      Yeah, You don't do regular trade with the other 95% without the approval of the United States financial system, yay global hegemony.
allears 3y ago
Yes, but Coinbase deals in lots of tokens that the SEC claims are "securities," so their business model may not survive.
- candiddevmike 3y ago
  I don't think it's possible to make money like a traditional bank or brokerage with cryptocurrency, none of it is sticky and the users can go around you. Thus the "security but not a security" get rich quick FOMO schemes.

dumpsterdiver 3y ago

[flagged]

predictabl3 3y ago
[flagged]
- EdwardDiego 3y ago
  "Have fun staying poor, nocoiner" is probably one reason you see such vocal dislike. The blatant criminality is likely another. But I'm just a nocoiner, so you know.
  - predictabl3 3y ago
    > "Have fun staying poor, nocoiner" is probably one reason you see such vocal dislike. I literally can't name a single time I've ever, ever seen that sentiment expressed on HN. And the irony... but at least the nocoiners have at least stopped insisting that everyone in crypto is an idiot that doesn't know what they're doing. (aka, projecting). At least outwardly anyway, from what I can tell. I love that my OG comment is flagged. Really just says everything, it wasn't even remotely combatative. Just add it to the list of things you can't really talk about on HN. Bitcoin suxors amiright?!
- striking 3y ago
  I've actually thought about this myself, and have come to a couple of somewhat opposing conclusions: * Crypto is uniquely capitalist and to some extent uniquely exploitative technology. Given how minimally used it appears to be for actually worthwhile things and how many people are getting rugpulled, just how much damage is actually being done, I can see why there are so many people who consider it to occupy its own separate tier of capitalist exploitation. * As a tech worker, I hate thinking about how what I do is itself exploitative and capitalist, and the crypto ecosystem and community makes me feel better about it because at least I'm not that bad. I assume a lot of folks would never admit to feeling this way, but probably do on some level.

ren_engineer 3y ago

all of this conveniently happening right before FedNow goes live in July and after the debt ceiling got suspended until 2025

devmor 3y ago
Similarly, you conveniently ignoring the past 20+ months of high profile crypto investigations, shutdowns, arrests, lawsuits and seizures to pretend there's a sudden conspiracy.
politician 3y ago
Don’t forget the CBDC reports that are coming due about now.
dontupvoteme 3y ago
+ Dedollarization.

Alupis 3y ago

For the casual bystander with crypto parked in Coinbase vaults, and maybe some eth staked - what's the consensus among those more knowledgeable? Move assets now or just stay the course? It doesn't look like anyone is going to outright lose assets - but perhaps not the able to withdraw for some period of time?

pabloarteel 3y ago
One of the few benefits of crypto is to "be your own bank" and not needing 3rd party permission to move your assets. Withdraw to cold storage, dump everything except bitcoin, and of course, do your own research.
- ceroxylon 3y ago
  ...and send a test transaction before you send it all.
  - deleted 3y ago
    [deleted]
EscapeFromNY 3y ago
Self-custody is the way to go. Send your assets to a private key you control. Not your keys, not your coin. I sleep like a baby no matter what sketchy exchange is in the news any given week.
- tortilla 3y ago
  Exactly! My grandpapa drilled it into me at a very young age. “Tortilla! Not your keys, not your coin! Eat your vegetables.”
- Alupis 3y ago
  Yes, but for regular people, like myself, being responsible for those keys is a pretty sizable burden. I didn't speculate on crypto because I hated centralized banking...

unyttigfjelltol 3y ago

Keep in mind this is a TRO, and the judge only has heard from the SEC so far.[1] [1] https://www.americanbar.org/groups/litigation/committees/woman-advocate/practice/2018/preliminary-injuction-relief/ https://www.americanbar.org/groups/litigation/committees/wom...

WhereIsTheTruth 3y ago

Coinbase is american based by ex WallStreet people, I'm pretty sure this is all coordinated to help Coinbase lead the digital USD revolution, fishy buisiness as usual.. https://www.federalreserve.gov/central-bank-digital-currency.htm https://www.federalreserve.gov/central-bank-digital-currency... Another case of Alstom or even BlackBerry..