Coinbase CEO says he’ll shut down ETH staking if…

Seedphrase Daily 👋 Your crypto friends sending you off into the Weekend.

📓 Today's Agenda :

  • 💡 Tether Attempts to Win Trust, and Avoid (more) Lawsuits

  • 🤯 Coinbase CEO says he’ll shut down ETH staking if… 

  • ⏮ Weekly Rewind 

  • 💡 An Opportunity to Partner with Us

  • 🌱 NewSeeds

Tether is the biggest stablecoin on the market, holding next to $68B in reserves. 

But their history is a lot like the Trump tax returns we never got to see...

Tether has repeatedly refused audits, facing major backlash for lack of transparency in their reserves.

Long story short:

  • They claimed to be backed by cold, hard cash.

  • Turned out, like Kim K's butt, that was fake news.

  • Tether was forced to admit they're also backed by other assets, and no one really knows what they are.

Now they're trying to save face by hiring BDO Italia to audit them. 

This is an attempt to be less sus and prove they are  💯

But will it work?

Warriors: Tether has been able to withstand every single attack on it. Enduring $7B in withdrawals one to one and a couple $20M+ fines for being sus about their reserves.. 

With this move, they might become stablecoin kings. Or still go to zero. TBD.

Remember: Yesterday JP Morgan bet that staking would be very profitable for Coinbase, citing juicy yields. 💰💰💰

But given the current environment of: 

  • SEC investigations

  • Tornado Cash Sanctions

  • & Government Talks of Regulation

The community wanted to know what Coinbase CEO, Brian Armstrong, would do hYpOtHetiCalLY if asked to censor ETH protocol:

This was his response:

Why I love this.

Coinbase would rather shut down staking, and suffer a huge loss of revenue, than get involved in the business of censorship and sanctions. 

Principle over profits.

This makes me bullish about Coinbase.

One of the Holy Pillars of crypto is that it's permissionless. Sanctions are antithetical to crypto. We have to protect crypto fundamentals or else we may see the entire infrastructure crumble.

This is setting a beautiful example for the rest of the exchanges to follow. 

Wondering what you missed this week? 

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That's all for today. See you Monday! 

DISCLAIMER: None of this is financial 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. Please be careful and do your own research

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