The main topic is the launch of Coinbase's layer-2 blockchain Base's mainnet to the public on August 9. Key points include:
- Base has been operating on the testnet since late February and launched its "builder only phase" in mid-July.
- Users can start bridging their funds onchain to mint NFTs and experience Base.
- Base will kick off its Onchain Summer initiative, partnering with consumer brands like Coca-Cola and Atari.
- Base has seen over $68 million worth of ether bridged to the network and over $200 million in trading volume and transactions.
- The blockchain is partnering with Prop House to offer grants to builders building on Base.
- Onchain activity is growing quickly.
Cryptocurrency exchange Coinbase is acquiring a minority stake in Circle Internet Financial, dissolving their partnership and bringing the stablecoin USD Coin fully in-house, while also adding native support for USDC on six additional blockchains, bringing the total to 15.
Coinbase may be misrepresenting itself as an exchange and could be violating state money transmitter licenses, according to allegations made by ChainArgos' CEO and General Counsel. The company argues that Coinbase is legally an over-the-counter (OTC) broker rather than an exchange operator, and it may be in violation of its licenses with its Ethereum platform, Base.
Coinbase's new Base blockchain, which operates as a layer-2 network atop Ethereum, has gained significant traction with its application Friend.tech attracting over 100,000 users and generating $25 million in fees, pushing its total value locked past $200 million and its transactions per second above Ethereum and rival layer-2 projects Arbitrum and Optimism.
Base, the Layer 2 scaling solution from Coinbase, has experienced a significant increase in transactions per second (TPS) due to the trend called Friend.tech, according to CEO Brian Armstrong. Base's TPS has exceeded that of Ethereum, with a TPS value up by over 75% in the past week, making it a major L2 protocol to watch out for.
Coinbase Assets will suspend trading for six cryptocurrencies, including BarnBridge, DerivaDAO, Jupiter, Multichain, Ooki, and Voyager, due to falling short of the exchange's listing standards, resulting in price plunges for the delisted assets.
Ethereum mixer Tornado Cash co-founders Roman Storm and Roman Semenov have been charged with money laundering over $1 billion in criminal proceeds, while FTX-affiliated Farmington State Bank has been shut down for attempting to create a stablecoin without proper approval. Prime Trust has filed for bankruptcy after losing $6 million of customer money in Terra-Luna gambling, and Binance has lost its UK payment processor Checkout.com over money laundering concerns. Furthermore, Sam Bankman-Fried plans to blame FTX's lawyers for his decision-making in his legal defense. The SEC has sued Titan for promising unrealistic investment returns, Coinbase has suspended certain stablecoins for Canadian users, and the Centre consortium that issued the USDC stablecoin is being dissolved.
The cost of executing transactions on Ethereum's blockchain has reached its lowest point since December, indicating the increasing popularity of scaling solutions such as Friend.tech built on Coinbase's L2 chain, which has contributed to the decline in fees.
Coinbase's stock experienced a significant surge after a federal judge ruled in favor of Grayscale in their SEC dispute, leading to hopes of a potential Bitcoin ETF and increasing the value of COIN by over 15%.
Coinbase's layer-2 solution, Base, experienced four security incidents shortly after its launch, resulting in the loss of $15.8 million in cryptocurrencies in August.
The market cap of USD Coin (USDC) has been decreasing rapidly, reaching a two-year low due to a loss of trust after the banking crisis earlier this year and a drop in activity in the DeFi sphere, while its competitor Tether continues to rise in market cap; however, Coinbase remains bullish on USDC's future and aims to expand its adoption.
Coinbase's layer-2 solution, Base, has become the fastest network to reach 1 million addresses, attracting big brands and generating $3.3 million in profit since its launch.
FTX, a prominent cryptocurrency exchange, favored top executives with transactions that enriched them just before its downfall in 2022, according to financial statements presented to the United States Bankruptcy Court for the District of Delaware.
Coinbase's Ethereum layer-2 network Base experienced its first major outage, lasting for 43 minutes, due to a delay in block production, highlighting the potential risks of using layer-2 networks compared to Ethereum's mainnet.
Cheap and speedy layer 2 rollup networks like Arbitrum, Optimism, and Coinbase's Base are gaining popularity as alternatives to the congested Ethereum network, but concerns arise over the centralized nature of their sequencers, which could pose risks such as transaction censorship and system failure. However, experts argue that the bigger security concerns for layer 2 networks lie elsewhere, such as the lack of fraud proofs and escape hatch mechanisms.
Coinbase CEO Brian Armstrong discusses the company's base layer 2 blockchain network, interest in flatcoin, and the need for regulatory clarity in the crypto industry, suggesting that the courts, congress, and the CFTC could provide clarity and that there could be a new SEC chair in 2024.
The lack of clear crypto regulations in the US has caused significant issues for the industry, leading to collapses and a weakening of America's position as a financial hub, according to Coinbase CEO Brian Armstrong. He emphasizes the need for clear rules that recognize the innovation potential of the technology while protecting consumers. Armstrong also highlights the potential benefits of Bitcoin exchange-traded funds (ETFs) and Coinbase's role as custodian in many ETF applications.
A bankrupt crypto firm holding billions of dollars in digital assets could cause a price collapse, with traders selling due to fears of FTX liquidating its $3 billion crypto holdings.
Major cryptocurrencies experienced a decline due to concerns over the potential selling pressure from FTX's bankruptcy, as the exchange seeks regulatory approval to liquidate $3.4 billion in crypto assets.
Coinbase has reportedly earned a $1 million profit from the $73 million Curve exploit in July, but has refused to refund victims, highlighting the tension between the decentralized nature of blockchain finance and the lack of recourse for crypto theft.
Coinbase's layer-2 scaling solution Base set a new daily transaction record with over 1.8 million transactions, surpassing the combined total of its rivals Arbitrum and Optimism.
FTX's sale of tokens held by the bankrupt crypto exchange will not cause a market shock, as liquidations are limited and there are strict controls and restrictions in place, according to a research report by Coinbase.
Coin Metrics' latest report shows that Coinbase's revenues have diversified away from trading fees, now accounting for 77% of total revenues, as other business lines like subscription fees and wallet services contribute an increasing share. However, Coinbase's growth is limited due to its high trading fees and dependence on the U.S. market, making its future uncertain.
Coinbase has considered acquiring FTX Europe in order to expand its derivatives business and tap into the exchange's profitable derivatives offerings and customer base.
Coinbase is looking to diversify its revenues, but for now, it remains heavily reliant on Bitcoin trading.
Coinbase registers with Spain's central bank for crypto services, FTX founder requests temporary release from jail, and JPMorgan CEO warns of the potential negative impact of rising U.S. interest rates.
Coinbase's blockchain, Base, has quickly become a major player in the Ethereum-based layer-2 chain space, hosting numerous decentralized projects and seeing a high volume of transactions and new addresses, with the goal of bringing a billion users on-chain within this decade. The company aims to drive mainstream adoption by reducing costs, improving user experience, and developing better identity infrastructure, and believes that blockchain technology is moving from a speculative phase to one focused on utility for everyday people.
Coinbase has obtained regulatory approval to offer perpetual futures to retail customers outside the U.S., marking its entry into the largest market in the cryptocurrency industry.
Decentralized social media platform Friend.tech, built on Coinbase's layer-2 protocol, has experienced significant growth in revenue and total value locked, proving critics wrong who predicted its failure.
The global cryptocurrency market remains significantly impacted by the collapse of FTX and other major players, resulting in lower prices, trading volumes, and venture capital investment compared to the peaks of 2021.
Coinbase, the top US crypto exchange, is focusing on international markets due to regulatory uncertainty in the US and aims to bring a billion people into crypto.
The rise of Ethereum layer-2s is helping the network regain market share from alternative layer-1s, threatening their survival due to inflationary tokenomics and other challenges, according to Bloomberg crypto analyst Jamie Coutts.
Ethereum's Layer-2 networks accounted for the majority of transactions in Q3, driven by the launch of Base and the popularity of Friend.tech, according to Messari's State of Ethereum report, with Base's growth exceeding expectations and highlighting the potential impact of new apps on blockchains. However, the report also notes that interest and enthusiasm in the market remain low due to the bear market.
Coinbase is facing a legal battle with federal regulators over its operation as an unregistered securities exchange, with three new legal filings supporting the SEC's argument that it has the authority to regulate cryptocurrency under existing laws.
Coinbase's spot trading volume has dropped by over 50% in Q3 2023, indicating a shift in interest in cryptocurrency trading, while gaining market share as competitor exchanges face increased regulatory scrutiny.
Coinbase's spot trading volume dropped by 52% in Q3 2023 compared to the same period in 2022 due to Bitcoin's stagnant price and trading range, but a breakout may be imminent with an upside bias due to the lack of a dip below $25,000 in recent months.
Coinbase is demanding immediate action from the Securities and Exchange Commission (SEC) or for the courts to intervene on its request for formal rules on digital assets as securities. Despite a previous delay, Coinbase accuses the SEC of refusing to act on its petition, leaving digital assets in a difficult situation with no clear guidelines.
