301–310 of 327 posts
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What does that even mean?
It means reinventing the wheel is going to yield a square. But not just a square but a new and exciting square where many people who once had money no longer have money because it was transferred to another pool of liquidity and those poor souls still left outside in the cold will not be made whole.
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In the Ethereum pre-sale they explicitly state it is not intended to be a security or investment offering: https://blog.ethereum.org/2014/07/22/launching-the-ether-sal... Staking and maybe EIP-1559 could change things? It's sad since it seems like Coinbase is now directly collaborating with Ethereum developers https://eips.ethereum.org/EIPS/eip-3651 > The COINBASE address shall be warm at the start of transaction exe…
Do you think the technical term coinbase refers to the company?
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Who do you file your flight plan with?
Shows that aerospace, read the development, certification and production of aircraft, is different from aviation, as in the use of said aircraft. Guess which side I am on.
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Almost everything you listed is heavily regulated. Why shouldn’t crypto be regulated as well?
Can you link me to the regulatory body that oversees sneaker markets and sneaker exchanges? My teenage kids will be very interested in reading this.
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I'm unclear how taking one person's currency (let's say Solana) and giving it to a different person/validator (who needs it to fulfill the requirements of a validator on that blockchain), who then puts it at risk (e.g., slashing risk), to earn a return (i.e. rewards) is at all different from a loan. It's like if the bank gave my currency (USD), to a different business owner (who needs it to run their business), who t…
For the record, I'm most familiar with Ethereum and am reasoning from there, Solana may be different. >It's like if the bank gave my currency (USD), to a different business owner (who needs it to run their business), who then puts it at risk (e.g., bankruptcy risk), to earn a return (i.e. profits). Who is the "different business owner" in this case? Coinbase isn't giving my coins (rhetorically, I do not use Coinbase…
This is an incorrect assumption that is true of ETH, but not the majority of coins that Coinbase Earn ingests.
From the 10-k:
We operate staking nodes on certain blockchain networks utilizing customers’ crypto assets and pass through the rewards received to those customers, less a service fee. In other cases, upon customers’ instructions, we may delegate our customers’ assets to third-party service providers that are unaffiliated with us. Some networks may further require customer assets to be transferred into smart contracts on the underlying blockchain networks not under our or anyone’s control.
>The risk profile also isn't exactly comparable, as in your example the bankruptcy and the potential profits are directly linked, while slashing is a punitive measure imposed by the protocol to punish bad behavior.
What? Do a good job, make money. Do a bad job lose money.
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I’m not an expert or a lawyer but it seems pretty clear. Going by what the SEC has literally told them: Coinbase taking money from depositors, loaning it out, and giving the depositors interest from the loan, is a security product. Page 1 of the Securities Exchange Act of 1934: https://www.govinfo.gov/content/pkg/COMPS-1885/pdf/COMPS-188... It… really doesn’t seem complicated. The SEC told Coinbase they’d be in viola…
>Coinbase taking money from depositors, loaning it out, and giving the depositors interest from the loan, is a security product. What Coinbase product does this? I was under the impression all of "Coinbase earn" was just staking-as-a-service.
We operate staking nodes on certain blockchain networks utilizing customers’ crypto assets and pass through the rewards received to those customers, less a service fee. In other cases, upon customers’ instructions, we may delegate our customers’ assets to third-party service providers that are unaffiliated with us. Some networks may further require customer assets to be transferred into smart contracts on the underlying blockchain networks not under our or anyone’s control.
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For the record, I'm most familiar with Ethereum and am reasoning from there, Solana may be different. >It's like if the bank gave my currency (USD), to a different business owner (who needs it to run their business), who then puts it at risk (e.g., bankruptcy risk), to earn a return (i.e. profits). Who is the "different business owner" in this case? Coinbase isn't giving my coins (rhetorically, I do not use Coinbase…
>Coinbase isn't giving my coins (rhetorically, I do not use Coinbase Earn or own any significant amount of blockchain assets) to anyone, they're interacting with a decentralized protocol on my behalf. This is an incorrect assumption that is true of ETH, but not the majority of coins that Coinbase Earn ingests. From the 10-k: We operate staking nodes on certain blockchain networks utilizing customers’ crypto assets an…
Interesting — an aside, I did not realize just how many protocols are supported on Coinbase Earn, otherwise I would have simply gone through each to see — but probably moot if these "third party service providers" are just doing the busywork of interacting with the protocol, on behalf of Coinbase, on behalf of the user. I grant that this involves a kind of custody management you don't see in other non-securitized IT services, but as long as everything is spelled out clearly (which it seems to be in the excerpt you posted) I maintain my position.
>What? Do a good job, make money. Do a bad job lose money.
This is more accurately phrased as "Do nothing out of the ordinary, make money. Do a bad job lose money." Nobody can "stake better" and expect more rewards out of it.
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>Coinbase taking money from depositors, loaning it out, and giving the depositors interest from the loan, is a security product. What Coinbase product does this? I was under the impression all of "Coinbase earn" was just staking-as-a-service.
From the 10-k: We operate staking nodes on certain blockchain networks utilizing customers’ crypto assets and pass through the rewards received to those customers, less a service fee. In other cases, upon customers’ instructions, we may delegate our customers’ assets to third-party service providers that are unaffiliated with us. Some networks may further require customer assets to be transferred into smart contracts…
...probably moot if these "third party service providers" are just doing the busywork of interacting with the protocol, on behalf of Coinbase, on behalf of the user. I grant that this involves a kind of custody management you don't see in other non-securitized IT services, but as long as everything is spelled out clearly (which it seems to be in the excerpt you posted) I maintain my position.
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Nothing you said here makes a fork of the bitcoin code with a completely different genesis block (or ANY fork at ANY block of the bitcoin chain) a security.
Why would people buy it?
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>Coinbase isn't giving my coins (rhetorically, I do not use Coinbase Earn or own any significant amount of blockchain assets) to anyone, they're interacting with a decentralized protocol on my behalf. This is an incorrect assumption that is true of ETH, but not the majority of coins that Coinbase Earn ingests. From the 10-k: We operate staking nodes on certain blockchain networks utilizing customers’ crypto assets an…
>we may delegate our customers’ assets to third-party service providers Interesting — an aside, I did not realize just how many protocols are supported on Coinbase Earn, otherwise I would have simply gone through each to see — but probably moot if these "third party service providers" are just doing the busywork of interacting with the protocol, on behalf of Coinbase, on behalf of the user. I grant that this involves…
I'm sorry, you can't just use the word protocol to change the first principles of the interaction. A bank is just doing the busywork of interacting with a borrower on behalf of me.
>Nobody can "stake better" and expect more rewards out of it.
This is such an interesting logical fallacy. The implication is that the default state is success and the 'other' state is failure. You can definitely stake better than others - that's the point of slashing.
Staking isn't nothing, it's an activity that requires skill, otherwise, why does it even exist? Shouldn't a centralized computer just do all the staking/validating if that's the case?
Like I thought crypto maximalism was about how incentives and competition solve problems that exist in trad finance?