Coinbase’s Initial Public Offering (IPO) forsakes the true principles of crypto.
The listing of the digital currency exchange service provider must have felt vindication for all Bitcoin (BTC) believers who managed to survive the cryptocurrency’s challenges from 2017 to 2020.
The nearly $78 billion listing on Nasdaq is now recognized as the biggest cash-out in crypto history, but it also made Coinbase establish digital currencies as a force to be reckoned with.
The day of the listing was the day that crypto boosters from different parts of the world were finally proven right, as what would many market supporters believe.
True principles of crypto forsaken
Bitcoin advocates, however, believe that the move was a blatant sell-out. Notwithstanding the supposed accomplishment of the IPO to validate the importance of cryptocurrencies as a speculative asset, they think that it has forsaken crypto’s true principles.
The argument couldn’t have been fairer.
In coming to the market, Bitcoin made promises that revolved around cheaper payments, trustless banking, privacy, and the end of dependency on financial middlemen.
In giving in to regulation, Coinbase did not only give up on challenging the traditional state-controlled fiat currency system but also abandoned the privacy of crypto transactions promoted by Bitcoin inventor Satoshi Nakamoto.
Lamenting instead of celebrating
Those who have believed that the rise of cryptocurrencies would end public dependence on central banks and financiers should lament the Coinbase listing instead of celebrating it.
It signals the victory of the state, and not crypto, in attaining control of the financial system.
All indicators show that in this bout, crypto failed to become a liberator and instead became a subterfuge in luring users into greater surveillance, not less.
Coinbase has transmuted into just another middleman and many are left to wonder if their users have any idea about the implications of its recent actions.
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