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Coinbase reveals the reasons that could lead to lower Bitcoin and Ethereum prices


 Coinbase reveals the reasons that could lead to lower Bitcoin and Ethereum prices

Before becoming a public company, QueenBase filed a registration statement with the Securities and Exchange Commission (SEC).

Deposit is a key part of the listing process, as CoinPeace has provided the S-1 Form to the SEC, which will eventually enable the company to become a public company and issue its Class A common stock.

In the deposit prospectus, CoinBase provided a summary of its financial position and revealed potential risks that could undermine its business in the cryptocurrency sector.

Given that Bitcoin (BTC) and Ethereum (ETH) are responsible for 56% of the total trading volume on CoinBase, and accordingly the company presented what it sees that could represent risk factors that could lead to a decline in the prices of digital currencies, and it listed the following:
Our total revenue depends largely on cryptocurrency prices and the volume of transactions made on our platform.
If this price or volume drops, our business, operating results and financial condition will be negatively affected.
 In the Coinbase deposit, the company described the factors that could affect Bitcoin and Ethereum prices and summarized them as follows:

- Operational disruptions and piracy.

- Major divisions and upgrades in the backbone network known as "forks".

- Developments in quantum computing.

- Regulations regarding cryptocurrencies as potential risk factors may hamper the performance of Bitcoin and Ethereum.

The “Coinbase” deposit also referred to “Satoshi Nakamoto,” the pseudonym that founded and developed Bitcoin, as a potential risk factor that might affect the Bitcoin price negatively.

Many cryptocurrency professionals assumed that if Nakamoto reveals his true identity, it could nullify the decentralization and Bitcoin's strong reputation in this aspect.

Despite the volatility and uncertainty surrounding the cryptocurrency industry, the CEO of Coinbase stated that the company had taken this into consideration. Armstrong wrote in a letter presented alongside the official registration document:
You can expect fluctuations in our financial data, given the price cycles in the cryptocurrency industry. This does not bother us, as we have taken a long-term perspective on adopting the cryptocurrency.

 With the release of the "Queen Piece" file by the SEC, it will only be a matter of time before Coinbase's intentions to bring it to the public are fulfilled. Class A common stocks of CoinBase are to be listed on the Nasdaq under the ticker symbol “COIN”.