In 2022, #coinbase lost more than $2bn, settled for $100mil deal for breaking the AML laws and lost 85% in their stock price 📉.
Is #coinbase going bankrupt?
Are your funds SAFU?
The answer might scare you, a 🧵
Is #coinbase going bankrupt?
Are your funds SAFU?
The answer might scare you, a 🧵
2/n
Its been a horrible year for #coinbase -
-Stock lost > 85%
- > 2B$ net income loss
- Fined by regulators once again
- According to @Protos S&P Officially downgraded the #stock to “junk”
-A new #WallStreet powerhouse is tackling them head on
Let’s cover everything 1 by 1 👇
Its been a horrible year for #coinbase -
-Stock lost > 85%
- > 2B$ net income loss
- Fined by regulators once again
- According to @Protos S&P Officially downgraded the #stock to “junk”
-A new #WallStreet powerhouse is tackling them head on
Let’s cover everything 1 by 1 👇
3/n
Let’s begin with the revenue according to the latest report (Q3 2022):
#Coinbase’s Total Revenue in 2022 until September was 2.5B$, less than 50% of the matching range in 2021 (5.3B$) 📉
Let’s begin with the revenue according to the latest report (Q3 2022):
#Coinbase’s Total Revenue in 2022 until September was 2.5B$, less than 50% of the matching range in 2021 (5.3B$) 📉
4/n
#Coinbase’s expenses at that period grew from 3.18B$ to an astounding 4.7B$
The two largest expenses were R&D (1.7B$) and “General and Administrative” (1.2B$)
#Coinbase’s expenses at that period grew from 3.18B$ to an astounding 4.7B$
The two largest expenses were R&D (1.7B$) and “General and Administrative” (1.2B$)
5/n
The huge spike in expenses combined with the drop in revenue lead to a 2022 up until Q3 a net income loss of more than 2bn$ (!)
To put that into perspective, in the #BullMarket of 2021, up until Q3 #Coinbase had a 2.7B$ net income *profit*
As @elonmusk says, let it sink.
The huge spike in expenses combined with the drop in revenue lead to a 2022 up until Q3 a net income loss of more than 2bn$ (!)
To put that into perspective, in the #BullMarket of 2021, up until Q3 #Coinbase had a 2.7B$ net income *profit*
As @elonmusk says, let it sink.
6/n
As for fundraising, #Coinbase raised money every single year in the past 6 years, for a total of more than 500M$.
Many might say it's not a good sign, to say the least.
As for fundraising, #Coinbase raised money every single year in the past 6 years, for a total of more than 500M$.
Many might say it's not a good sign, to say the least.
7/n
The Motley Fool’s @TMFJMo recently said in a podcast that there is a “Small but real chance that coinbase is going to ZERO” and that “#Coinbase is headed for a world of pain in 2023”
This is a mind blowing statement coming from one of the biggest podcasts on @Spotify!
The Motley Fool’s @TMFJMo recently said in a podcast that there is a “Small but real chance that coinbase is going to ZERO” and that “#Coinbase is headed for a world of pain in 2023”
This is a mind blowing statement coming from one of the biggest podcasts on @Spotify!
8/n
The financial statements above tell us the past, but let’s talk about #coinbase’s near future as #crypto, $ETH and $BTC are tanking.
The financial statements above tell us the past, but let’s talk about #coinbase’s near future as #crypto, $ETH and $BTC are tanking.
9/n
First of all, #Coinbase has just reached a 100M$ settlement with the NY regulators for violating AML laws! This is concerning especially after #Sam-Bankman-Fried and the #FTX saga
nytimes.com/2023/01/04/bus…
First of all, #Coinbase has just reached a 100M$ settlement with the NY regulators for violating AML laws! This is concerning especially after #Sam-Bankman-Fried and the #FTX saga
nytimes.com/2023/01/04/bus…
10/n
According to @nytimes, #coinbase agreed to pay a $50 million fine after financial regulators found that it let customers open accounts without conducting sufficient background checks, in violation of anti-money-laundering laws.
According to @nytimes, #coinbase agreed to pay a $50 million fine after financial regulators found that it let customers open accounts without conducting sufficient background checks, in violation of anti-money-laundering laws.
11/n
The compliance problems at #Coinbase were first detected during an examination in 2020.
Regulators found problems with anti-money-laundering controls going as far back as 2018.
After they failed to address this issue, the regulators opened a formal investigation in 2021.
The compliance problems at #Coinbase were first detected during an examination in 2020.
Regulators found problems with anti-money-laundering controls going as far back as 2018.
After they failed to address this issue, the regulators opened a formal investigation in 2021.
12/n
#coinbase had fallen behind on two key operations:
1. digging deeper into the backgrounds of customers whose identities seemed murky at first glance
2. following up on the suspicious-activity alerts that its internal monitoring system generated (more than 100,000 alerts)
#coinbase had fallen behind on two key operations:
1. digging deeper into the backgrounds of customers whose identities seemed murky at first glance
2. following up on the suspicious-activity alerts that its internal monitoring system generated (more than 100,000 alerts)
13/n
Allegedly according to @nytimes article,
In one instance, #coinbase unwittingly helped a digital thief steal $150 million from an unnamed company by claiming to be an employee of that company when opening a Coinbase account!
Allegedly according to @nytimes article,
In one instance, #coinbase unwittingly helped a digital thief steal $150 million from an unnamed company by claiming to be an employee of that company when opening a Coinbase account!
14/n
This not the first time #coinbase have troubles with regulators, as most of us remember their insider trading scandal that @cobie did a great job of covering
businesstoday.in/crypto/story/w…
This not the first time #coinbase have troubles with regulators, as most of us remember their insider trading scandal that @cobie did a great job of covering
businesstoday.in/crypto/story/w…
15/n
In addition, @Fidelity, a well-known #wallstreet powerhouse is launching a competitive retail-focused #crypto trading platform that will be fee-free and with extremely low spread
barrons.com/articles/fidel…
According to @TMFJMo, this can accelerate #coinbase’s crash.
In addition, @Fidelity, a well-known #wallstreet powerhouse is launching a competitive retail-focused #crypto trading platform that will be fee-free and with extremely low spread
barrons.com/articles/fidel…
According to @TMFJMo, this can accelerate #coinbase’s crash.
16/n
Now you’re probably thinking - Are my funds #safu??
The answer is a resounding NO, IF #coinbase goes bankrupt!
I know many of us are traumatized by #FTX, #luna, #blockfi and #celsius but there is an important lesson we learned
Now you’re probably thinking - Are my funds #safu??
The answer is a resounding NO, IF #coinbase goes bankrupt!
I know many of us are traumatized by #FTX, #luna, #blockfi and #celsius but there is an important lesson we learned
17/n
“Coinbase announced, in an SEC Form 10-Q, that the various cryptocurrencies held on its exchange could be included as property of its bankruptcy estate should it file for bankruptcy protection.”
summerscomptonwells.com/what-happens-i…
“Coinbase announced, in an SEC Form 10-Q, that the various cryptocurrencies held on its exchange could be included as property of its bankruptcy estate should it file for bankruptcy protection.”
summerscomptonwells.com/what-happens-i…
18/n
This means that just like in #Voyager’s case, user assets that are deposited in the exchange WILL probably be considered #coinbase’s assets, and may be partially returned to users, or even not at all if they are not enough to cover the liabilities!
This means that just like in #Voyager’s case, user assets that are deposited in the exchange WILL probably be considered #coinbase’s assets, and may be partially returned to users, or even not at all if they are not enough to cover the liabilities!
19/n
In simple words, NOT YOUR KEYS - NOT YOUR #CRYPTO.
If #coinbase collapses, according their official SEC statement - your funds can be used to pay their debts!
In simple words, NOT YOUR KEYS - NOT YOUR #CRYPTO.
If #coinbase collapses, according their official SEC statement - your funds can be used to pay their debts!
20/n
$COIN is currently down 85% in the past 1 year
$COIN is currently down 85% in the past 1 year
21/n
To sum it up, #coinbase's near future does not look bright:
- 2022 financial statements are bad
- #crypto - $BTC, $ETH and more are dumping
- They keep getting in trouble with regulators and the law
- Competition is only getting worse
- Users and $crypto volume tanked
To sum it up, #coinbase's near future does not look bright:
- 2022 financial statements are bad
- #crypto - $BTC, $ETH and more are dumping
- They keep getting in trouble with regulators and the law
- Competition is only getting worse
- Users and $crypto volume tanked
22/n
DISCLAIMER: This thread is not endorsed by 3rd parties mentioned in anyway, and is our subjective opinion. It is not a financial advice in any way and I encourage everyone to do their own research and DD. This thread is for educational purposes only and may contain mistakes
DISCLAIMER: This thread is not endorsed by 3rd parties mentioned in anyway, and is our subjective opinion. It is not a financial advice in any way and I encourage everyone to do their own research and DD. This thread is for educational purposes only and may contain mistakes
23/n
For more #crypto & #defi information and real time analysis, make sure to follow me on Twitter and on my free Telegram channel!
Knowledge is money.
t.me/overdose_gems_…
For more #crypto & #defi information and real time analysis, make sure to follow me on Twitter and on my free Telegram channel!
Knowledge is money.
t.me/overdose_gems_…
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