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> The financial terms of the deal were not disclosed. 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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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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> Which begs the question - what tokens are actually worth trading in the first place? I think we're getting closer to tokenizing actual securities. Similar to how TrueUSD is tokenizing U.S. Dollars, I think we're fairly close ( 5 years out) from NASDAQ officially tokenizing their stocks ( as an erc20 on the ethereum blockchain)
Nobody seriously wants equities on a blockchain. Securities need to be able to be split, merged, re-issued, forcibly transferred by courts, et cetera .
Whether I agree with these developments or not is completely irrelevant. I'll personally stick to pursing a market neutral strategy and exploiting intraday ETF discrepancies for now.
Paradex is a decentralized exchange that's built on top of the 0x protocol. DEXs are great because you can trade cryptocurrency pairs without trusting an intermediary (think Mt. Gox for why this is needed). This move shows that Coinbase is serious about building a decentralized trading platform (unless this is just an acquihire which would be very disappointing). Really exciting news!
Seeing as how Paradex isn't the most popular DEX and Coinbase's ties to 0x, I don't think this is an acquihire. This looks like they are actually going to use Paradex as a relayer.
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…
How is that different from the rest of the financial market? The huge chunk of all HFT trading is siphoning the money from real investors, it has no real value for the economy. HFT traders hold no positions in the market.
What's the point of a decentralized exchange if the frontend code can be shutdown at will?
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…
> Just making HFT bots to trade around a bunch of monopoly money that is useless other than hype-driven speculation? How is that different from the rest of the financial market? The huge chunk of all HFT trading is siphoning the money from real investors, it has no real value for the economy. HFT traders hold no positions in the market.
For equities trading, for example the shares actually are a piece of a revenue earning company. The trading activity benefits society by allowing the company to sell additional shares to the public when needed, to raise further capital, for example.
For futures the contracts represent a guarantee to buy or sell a commodity at a known amount and price at a set date in the future. The trading activity benefits society by allowing commodity producers to lock in a known price and offload the market risk of their harvest/herd/etc to speculators.
So the HFT participants in these markets are actually helping society in some way by making these markets more liquid and efficient given that the trading actually serves some benefit. For bitcoin/crypto the trading itself is currently the whole point of the endeavor - people are only buying coins because they think they will go up in price, which makes the trading itself pointless.
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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.
Because it allows people anywhere to access the aforementioned security. It also has a lot lower friction for all the participants.
Can you give specific, real-world examples about how the "friction" is lower? And what precisely do you mean by "friction" - lower cost? ease of use? something else?
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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?
I've had this thought myself. I think we can agree that most solid evidence points to Yes, trading is the killer app. Trading on something that has no intrinsic value. I.e. gambling.
And hey, gambling is a legitimate killer app. The gambling industry is enormous.