Coinbase Tested Group To Speculate on Crypto (wsj.com) 9
Coinbase Global has been searching for new ways to make money. One business it flirted with was controversial: using its own money to speculate on cryptocurrencies. WSJ: Last year, Coinbase -- which operates a large cryptocurrency exchange that handles bitcoin and other digital coins -- hired at least four senior Wall Street traders and launched a group to generate profit, in part, by using the company's cash to trade and "stake," or lock up, cryptocurrencies, according to people close to the matter. The activity was described as "proprietary" trading by the people at the company. Earlier this year, the team completed a $100 million transaction that the group viewed as a test trade of the new effort, according to the people. The transaction came after Coinbase executives testified to members of Congress last year that the company didn't buy and sell digital currencies for its own account. The monthslong effort to launch the Coinbase Risk Solutions group underscores how Coinbase, which has seen its shares tumble about 70% over the past year, has entertained more aggressive strategies as it tries to develop new businesses. Coinbase says some at the company examined pursuing proprietary trading but decided against it.
Problem with Capitalism (Score:3)
If you don't have infinite growth, you're a shit business.
Re: (Score:2)
If you don't have infinite growth, you're a shit business.
That's a rather myopic viewpoint.
There's nothing wrong with lifestyle companies, which are intentionally designed to generate a fairly static amount of recurring profit without bothering to chase infinite growth. I suppose the publicly traded equivalent would be Durable Dividend investing, though most lifestyle companies wouldn't bother to list themselves on the stock market, as that can be a motivator for chasing growth.
Re: (Score:2)
Because if you are not growing you are liquidating.
Re: (Score:2)
That which is not komorex ("empire", "the structure that grows"), is kesterex ("the structure that dies"). Every player of klin zha knows that.
proprietary trading (Score:2)
Coinbase says some at the company examined pursuing proprietary trading but decided against it.
Because they know it's a scam.
Much better to be an "exchange":
Bitcoin goes up? They make money on transactions.
Bitcoin goes down? They make money on transactions.
The house never loses.
Re: (Score:2)
It is all speculation. It is easy to make money in a market that is generally going up, not so much when the market is generally going down or just churning.
Yes, better to sell pickaxes than to be the miner.
speculatetors need to lose there ass! (Score:2)
speculatetors need to lose there ass!
Securities Exchange Act of 1934 which governs fina (Score:4, Informative)
Re: Securities Exchange Act of 1934 which governs (Score:2)
The key part of this is the reporting. That's why they hired "senior...". To find some loophole that puts them at an advantage compared to others.
Yeah... good luck with that. Not really going to happen when you consider the disclosure rules and lack of direct control.
It's totally legal and technically encouraged. It's kind of like doubling down on your bet. You believe in it and want to encourage it. That's great!
The problem these guys will run into is the "believing" part. If you lose faith, everyone else