31–40 of 66 posts
Acquihire? It would be weird for Coinbase to take full advantage of a descentralized exchange because many of the tokens clash with regulations and even being decentralized makes Coinbase the owner and target for SEC.
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To finally put an end to flash trading by limiting the total transaction throughput to one trade every ten minutes.
SEC can "fix" HFT instantly by allowing more decimals. There's no good reason to only have 0.01/0.001 increments. Making it so granular forces speed over accurate pricing. Make it 8 decimals and the speed advantage goes away.
There is no really easy way to "get rid of HFT", and it's unclear whether we actually want to do that. Equity trading is very cheap & efficient w/ tiny spreads on everything remotely liquid. Pretty much the only people who get hurt by HFT are big institutional investors (hedge funds, etc) that used to be able to move big blocks of stock without affecting the price as much as they now do. If anything - the pricing is better now. If you own a truckload of oranges and you hear that someone is going around frantically buying up all the oranges at every store, do you not feel like you should consider raising the price of your oranges?
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Nobody seriously wants equities on a blockchain. Securities need to be able to be split, merged, re-issued, forcibly transferred by courts, et cetera .
If someone can honestly explain why the blockchain would be any better than the DTCC for tracking equity security ownership I'd love to hear about it.
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If someone can honestly explain why the blockchain would be any better than the DTCC for tracking equity security ownership I'd love to hear about it.
I guess that Overstock guy wants to blockchain equities so that people can't naked short his company.
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Bitfinex isn’t a company that ignored some AML requirements and they’re not a company just using Tether. They’re the company responsible for tether, they are the creators of Tether. Tether is hugely fraudulent, it’s foundation is fraudulent, they haven’t just avoided some regulations. There’s no way that Coinbase or any other legitimate institution would open themselves up to being responsible for that.
Who has Tether defrauded? I agree Tether may have just issued without backing, but they don't promise being able to withdraw. So who is actually being harmed? And why is it unfixable? What if Coinbase promised to completely cover any usdt shortfall?
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What specific transaction costs/rent collecting are you referring to? As a retail investor I can trade stocks for free on Robinhood. My orders get filled instantaneously at the current market price. On other platforms the per-trade fee is a couple bucks, regardless of transaction size. With Coinbase I pay a MUCH larger fee, that is a percentage of the transaction size rather than zero (with Robinhood) or a low fixed…
This comment makes me sad. Lots of bad info. All securities exchanges incur fees, varying based on wherher you’re eating or supplying liquidity. I forget what these are called, but companies like Interactive brokers pass those fees on. Robinhood eats the fees for you. With coinbase, you pay a 0% fee as long as you use GDAX, which is a no brainer, and place limit orders that are not immediately executable e.g. sell $.…
Back when investors held paper stock certificates, including bearer securities, which de-centralised ownership recording, shares were frequently lost, stolen, damaged and fought over after someone's death, intestacy, bankruptcy et cetera. Returning to tokenized holding would heap costs currently well managed by the system onto end users. (One would also have the problem of irreversible transactions being incompatible with modern law and securities practices.) "Stocks but on blockchain" is a regression for everyone except the hucksters.
Circle acquiring Poloniex changed the game. The rumored assurances from regulators that Poloniex's prior KYC/AML transgressions would be ignored as long as Circle fixed them going forward was all it really took. Now we are seeing a huge wave of M&A deals while Coinbase uses its very strong financial position to buy up the the less compliant but cashflow-rich overseas exchanges. In particular I wouldn't be surprised t…
I'm hoping DAG-based cryptocurrencies will be able to provide the transaction speed necessary for consumer transactions to be practical and we'll see stores actually take cryptocurrencies directly. If so, we'd just need someone ambitious enough to make the payment terminals and hopefully stores will see tiny/zero transaction fees as enough of an incentive to switch. To add to your list of points, I'd argue privacy is…
Circle acquiring Poloniex changed the game. The rumored assurances from regulators that Poloniex's prior KYC/AML transgressions would be ignored as long as Circle fixed them going forward was all it really took. Now we are seeing a huge wave of M&A deals while Coinbase uses its very strong financial position to buy up the the less compliant but cashflow-rich overseas exchanges. In particular I wouldn't be surprised t…
what a great question. 9 years later we're still trying to figure out what the point is.
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SEC can "fix" HFT instantly by allowing more decimals. There's no good reason to only have 0.01/0.001 increments. Making it so granular forces speed over accurate pricing. Make it 8 decimals and the speed advantage goes away.
No, it just moves the race from getting the first order at the +0.01/-0.01 band placed to getting the first order priced .00000001 better than the top placed before a liquidity-taking order comes in. There is no really easy way to "get rid of HFT", and it's unclear whether we actually want to do that. Equity trading is very cheap & efficient w/ tiny spreads on everything remotely liquid. Pretty much the only people w…
I'm not against HFT at all. But having such granular pricing doesn't do anyone favours. More decimals would reduce spreads as well as silencing HFT critics and maybe make trading a bit more accessible without as much high end systems. But the spread reduction is valuable alone.
[0]: http://hackingdistributed.com/2017/08/13/cost-of-decent/