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Coin Bass cites “disclosure of Bitcoin creator identity” as business risk


In its latest announcement, the Coin Bass exchange identifies the revelation of Satoshi Nakamoto, Decentralized Finance (DeFi) and social media as risk factors for investors. Explaining the challenges and risks of the business is one of the requirements that is done before the public offering of company shares.

to the the report CoinDesk, digital currency exchanger Coin Base, identified some unique risks in his business in an announcement released on Thursday. These risks include decentralized finance competition and the possible identification of the true identity of the creator of Bitcoin, Satoshi Nakamoto.

Coinbase noted that identifying the person or persons developing the bitcoin, alias Satoshi Nakamoto, or the transfer of Satoshi bitcoins could be a risk factor.

The exchange did not specify how revealing Nakamoto’s true identity could affect his business. However, in May 2020, we saw the transfer of currencies that were said to belong to Nakamoto. This shook the digital currency market a bit.

Other high-risk factors include “negative perceptions of Bitcoin or Ethereum” and “unpredictable media coverage or trending digital currencies.”

Decentralized finance has also been identified as a risk. Coin Bass said:

We are competing with an increasing number of decentralized and unreliable platforms, and failure to deal effectively with them may negatively affect our business.

Explaining the risks posed by the growth of decentralized finance, Coin Bess specifically cites decentralized financial protocols in Ethereum, Theron, Polkadot, and Solana.

CoinDesk’s previous report shows that the growth of decentralized finance transactions has been significant. The total volume of these transactions in January reached a record high of $ 50 billion.

Other risks identified in this list, such as the significant dependence of corporate earnings on the volatile price of digital currencies and the potential for security breaches and possible litigation between individuals and regulators, are other options.

The US Securities and Exchange Commission (SEC) requires businesses to describe the risks associated with their businesses before and after the IPO. The “risk factors” section in annual or quarterly announcements and reports is one of the most important aspects for professional investors. Companies also tend to be cautious, even about risks that are unlikely to occur.

While there has been a lot of speculation about the person or persons behind Satoshi Nakamoto, the identity of the creator of Bitcoin has not yet been determined. Reports claiming to have solved the riddle have been rejected.

In honor of Nakamoto, Quinn Base has included the Bitcoin network address of the creator of Bitcoin in the copies section of its announcements, alongside lawyers and the like.

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