Coinbase cites “disclosure of Bitcoin creator identity” as business risk


Coinbase cites “disclosure of Bitcoin creator identity” as business risk

Coinbase In its latest announcement, the Coinbase exchange identifies the disclosure of Satoshi Nakamoto’s identity, decentralized finance (DeFi) and social media as risk factors for investors. Explaining the challenges and risks of the business is one of the requirements that is done before the public offering of company shares.

Coinbase digital currency exchange identified some unique risks in its business in an announcement on Thursday, according to Coin Desk. These risks include decentralized finance competition and the possible identification of the true identity of the creator of Bitcoin, Satoshi Nakamoto.

Coinbase cites “disclosure of Bitcoin creator identity” as business risk

Coinbase noted that identifying the person or persons developing the bitcoin, nicknamed Satoshi Nakamoto, or the transfer of Satoshi bitcoins could be a risk factor.

The exchange has not specified how revealing Nakamoto’s true identity could affect his business. However, in May 2020 we saw the transfer of currencies that were said to belong to Nakamoto. This shook the digital currency market a bit.

Other high-risk factors include “negative perceptions of bitcoin or Ethereum” and “unpredictable media coverage or trending digital currencies.”

Decentralized finance has also been identified as a risk. Coinbase said:

We are competing with an increasing number of decentralized and unreliable platforms, and failing to deal effectively with them may negatively affect our business.

Coinbase specifically mentions decentralized financial protocols in Ethereum, Theron, Polkadot, and Solana in describing the risks posed by the growth of decentralized finance.

A previous coindesk report shows that the growth of decentralized financial transactions has been significant. The total volume of these transactions in January reached a record high of $ 50 billion.

Other risks identified in this list include significant corporate revenue dependence on the volatile price of digital currencies and the potential for security breaches and potential litigation between individuals and regulators.

Coinbase cites “disclosure of Bitcoin creator identity” as business risk

The US Securities and Exchange Commission (SEC) requires businesses to describe the risks associated with their businesses before and after the IPO. The “risk factors” section in annual or quarterly announcements and reports is one of the most important aspects for professional investors. Companies also tend to be cautious, even about risks that are unlikely to occur.

While there has been much speculation about the person or persons behind Satoshi Nakamoto, the identity of the creator of the bitcoin has not yet been determined. Reports claiming to have solved the riddle have been rejected.

In honor of Nakamoto, Coinbase has placed the Bitcoin network address of the creator of Bitcoin in the copies section of its announcements, alongside lawyers and the like.


Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *