The Wall Street Journal reported earlier on Sept. 22 that Coinbase formed a trading group with $100 million in corporate cash to trade cryptocurrency.
The company examined the performance of its proprietary trading, according to the article, and those acquainted with the product stated the exchange profited. The exchange generated financing through the sale of a structured note to the financial firm Invesco Ltd. Invesco’s official sources verified the transaction.
Wall Street stated that the exchange hired at least four top Wall Street traders for the Coinbase Risk Solutions department, which traded, staked, and locked up cryptocurrency using the company’s capital.
Coinbase issued a blog post in which it categorically disputed the charges. The exchange, according to the article, does not conduct “a proprietary trading business or act as a market maker.”
Coinbase Risk Solutions is intended to assist institutional investors seeking Bitcoin exposure. According to the business, the purpose of this team is to broaden institutional engagement in web3 beyond Hodling.
According to a Coinbase spokesperson:
“Coinbase does not, and has never, had a proprietary trading business. Any insinuation that we misled Congress is a willful misrepresentation of the facts. Coinbase Risk Solutions was established to facilitate client-driven crypto transactions.”
When the exchange officials testified before Congress last year, they denied that the company engaged in proprietary trading. While Coinbase is not prohibited from participating in speculative trading, there are worries about the hazards.
When a financial business invests its assets and the funds of its clients in the market, there is the risk of a conflict of interest and market manipulation.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…
The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…
Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…
Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…
Palo Alto, California, 21st November 2024, Chainwire
Best Cryptos to Buy: Qubetics presale rockets ahead, Bitcoin nears $100k, and Avalanche prepares to…
This website uses cookies.