Today in Markets

Will COIN Outpace SOL?

Coinbase stock is on a tear since the DOJ went off on Binance.
Nov 28, 20231 min read

COIN keeps crushing it. Coinbase's stock is up handily—green for the fourth consecutive green day after news that US regulators settled with top crypto exchange Binance on Tuesday to resolve compliance violations. The stock is up nearly 75% this month, a growth rate that nearly rivals Solana's token surge.

As part of its settlement, Binance must retain an independent compliance monitor for three years, enhance its compliance programs, and give the US government access to its records to monitor conformity.

Portions of Binance’s volumes came from users attempting to avoid the oversight of Big Brother; they’re now fleeing. Intensified KYC/AML checks will purge users from the platform, and better compliance practices will diminish wash trading.

Crypto exchanges’ legal issues are far from settled, with Coinbase, Kraken, and Binance all contending with unregistered security allegations from the SEC. 

Binance volumes are falling, and the exchange’s reputation as the preeminent venue for crypto price discovery is fading, leaving Coinbase well-positioned to capitalize on its most significant competitor’s downfall!

While Coinbase has long been a distant #2 to Binance, their largest competitor was just decapitated! The CEX now offers perps for international customers and is a dominant player in ETH staking. Market participants acknowledge Coinbase’s newfound position of dominance and have rapidly increased their willingness to pay for COIN.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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