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.
The main topic is Coinbase's second quarter earnings report. The key points are:
- Coinbase generated total revenues of $707.9 million in Q2, beating market estimates.
- The company had a net loss of $97 million but generated a positive adjusted EBITDA of $194 million.
- Analysts had mixed expectations prior to the earnings report.
- Coinbase's quarterly recurring operating expenses have dropped nearly 50% year-over-year.
- After the earnings report, Coinbase's stock rose 7% in after-hours trading but retracted 2% at the time of publication.
- Coinbase's stock is up about 170% year-to-date.
- As of March 31, 2023, Coinbase had $145 billion in quarterly volume traded and $130 billion in assets on its platform.
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.
Ethereum cofounder Vitalik Buterin sends $1 million worth of Ether to Coinbase, sparking speculation about his intentions and potential impact on the cryptocurrency's value.
Pi Network, a mobile mining blockchain, has reached 50 million active users out of its total user base of over 100 million, indicating its potential to challenge existing dynamics and usher in mainstream adoption of its native $PI coin.
Despite the bear market, Ethereum layer-2 solutions like Optimism, Arbitrum, and Base are thriving, with increased traction and healthy fundamentals, according to analytics firm IntoTheBlock.
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.
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 has released a plan called the "Base Neutrality Principles" to ensure decentralization and neutrality for its new blockchain, Base, without exerting control over it, in accordance with Optimism's vision for a "Superchain."
Coinbase is in talks with major Canadian banks to gain support for the crypto industry in Canada as it faces regulatory uncertainty in its home country, aiming to have the banks participate in the crypto economy in the near future.
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 CEO Brian Armstrong shared ten emerging ideas in the cryptocurrency space that excite him, including the creation of a CPI-linked stablecoin, on-chain reputation systems, on-chain advertising, and decentralized labor markets.
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.
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.
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.
Cryptocurrency exchange Coinbase has increased its debt buyback offer to $180 million, with $50 million in tendered notes already accepted for purchase, as it aims to repurchase its 2031 senior notes.
Socket, a protocol focused on improving communication between blockchains, has raised $5 million from Coinbase Ventures and Framework Ventures to expand its work with Coinbase and provide bridging opportunities for developers and users of Coinbase Wallet and Base, aiming to connect fragmented ecosystems and enable seamless transactions across multiple networks.
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.
Crypto giant Coinbase has launched a lending platform for institutional investors in the US, aiming to fill the gap left by bankrupt players in the crypto lending market, while Marathon Digital's Bitcoin mining rate fell 9% in August due to increased curtailment activity, and Hana Bank has partnered with BitGo to offer digital asset custody services in South Korea.
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.
Coinbase CEO Brian Armstrong revealed in an interview that the exchange is interested in developing the next generation of stablecoins, including the concept of flatcoin, which would be backed by the Consumer Price Index (CPI) or purchasing power rather than a fiat currency.
Crypto exchange Coinbase has confirmed its decision to integrate the Lightning Network, a layer 2 payment protocol, in order to enable faster and cheaper Bitcoin transactions and compete against newer cryptocurrency projects.
Crypto firm Layer N has raised $5 million in a seed round co-led by Founders Fund and dao5, aiming to build a layer-2 blockchain on top of Ethereum to increase transaction speed and capacity.
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.
Bitcoin (BTC) and Ethereum (ETH) experienced stable prices over the week, while Bitcoin Cash (BCH) and Toncoin (TON) saw notable price increases, and Stellar (XLM) suffered a decrease; Sony is developing a blockchain network in collaboration with Startale Labs, PayPal launched crypto to USD off-ramps, and Deutsche Bank partnered with Taurus for custody and tokenization services.
Coinbase's layer 2 blockchain Base has achieved a record-high number of daily transactions driven by the decentralized social network platform Friend.tech, while the sale of tokens held by bankrupt exchange FTX will not cause a market shock due to controlled liquidations, according to Coinbase.
Blockchain Capital has raised $580 million for two new funds, with $380 million allocated for early-stage companies and protocols, and $200 million for late-stage investments, indicating continued investor interest despite the subdued state of the digital asset market.
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.
