Coinbase has carved a comfortable little niche for itself within crypto.
The exchange and its tokens have been dependable. CEO Brian Armstrong is a vocal and eloquent crypto advocate, and his exchange has yet to be rocked by any major scandal.
It’s no wonder that the Coinbase has been able to garner a pretty strong fan… collective.
But it’s become much more than a question of popularity.
While other exchanges and crypto businesses have struggled through the bear market, Coinbase seems to be flourishing, because it’s doing one crucial thing differently.
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☕️ Ripple Acquires Fortress Trust 🌊 🔒
Ripple has announced its acquisition of Fortress Trust, a Nevada-based financial institution with a focus on providing Web3 tech and infrastructure.
“They’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers,” said Ripple CEO Brad Garlinghouse in a press release. “We’re excited to bring on this team and its technology to accelerate our business and continue pressing our advantage in the areas critical to crypto infrastructure.”
Some users were concerned that Fortress Trust’s acquisition would impact other Bitcoin holdings, such as those at Swan. Swan was previously partnered with Prime Trust, before moving to Fortress Trust. Prime Trust went bankrupt in August.
Swan CEO Cory Klippsten assured users that there would be no changes in the immediate future.
Near-term, no change. Fortress Trust will be run as an autonomous unit.
Mid-term, we'll have some news out very soon.
— Cory Klippsten | Swan.com 🦢 #Bitcoin (@coryklippsten)
Sep 8, 2023
As exciting a development as this is, we can’t help but be a little disappointed that Ripple acquired Fortress Trust through corporate means, instead of the traditional way of capturing fortresses: with a battering ram.
☕️ France Training Crypto Influencers 🇫🇷 👱🏻♀️
France is implementing a new program that will train crypto influencers on proper advertising disclosures.
"Finance is a highly regulated sector, and investment communications must comply with the rules and be clear, accurate, non-misleading, and balanced,” said Marie-Anne Barbat-Layani, chair of the Autorité des Marchés Financiers (AMF) in a press release. “It appears that some influencers are unaware of this."
The online module will educate influencers (or anybody crypto-curious) on the proper regulations, asset awareness, and French laws related to online endorsements.
At the end of the training, users will be granted a Responsible Influence in Financial Advertising Certificate if they can correctly answer 75% of 25 multiple-choice questions.
By the end of the training, French crypto influencers won’t only be able to properly identify disclosures. They’ll tell you where the ads were grown, and the year they were bottled.
☕️ Ted Cruz: Texas’ Bitcoin Bull 🇺🇸 🐂
Cruz said that he was a “big believer” in Bitcoin mining. “These operations can improve our grid resiliency since they can shut off during inclement weather and free up electricity to heat or cool homes.” Cruz continued.
Grid resilience has, unfortunately, become a major consideration for Texan energy. This past summer has been the second hottest in Texas history, causing power grid failures and forcing emergency power grid measures for 90% of the state.
Undeterred, much of Ted Cruz’s radio interview was powered by a hand crank.
Spilling the Beans
☕️ Coinbase’s Big Bet Paid Off 🤫 🔵
We mentioned in the introduction that Coinbase has yet to be rocked by scandal, and that’s not for lack of trying by other entities.
The SEC sued Coinbase last June for operating as an unregistered securities exchange, broker, and clearing agency.
Now, rather than let this encroaching legal action send the company into a panic, Coinbase changed the narrative and interpreted the lawsuit as an opportunity to defend crypto and demand clarity on a public stage.
Coinbase issued an official statement on its homepage following an SEC “well’s notice” warning it of pending legal action.
We bring up this lawsuit and the subsequent PR pivot because it’s an example of how Coinbase is doing things both differently and better.
If the whole pack is struggling, whether that’s with SEC lawsuits or the bear market, it’s time to break from the pack.
Now, the crypto market is in a bit of a tailspin, with trading volume hitting a four-year low.
But Coinbase seems to be doing… better than okay.
Coinbase launched a new layer-2 solution on August 9. Naturally, they called it “Base.”
And Base has been going gangbusters, to say the least.
Just 11 days after Base’s launch, Base had 11 million participating web addresses.
And more than just community engagement, Base has brought in a pretty penny for Coinbase.
So far, Base has generated $4.9 million in profit for Coinbase. Though technically, that’s $3.3 million in profit once the Ethereum traffic fees are subtracted.
But, well, what is Coinbase doing differently? What does Brian Armstrong know that we don’t?
The irony is that there’s nothing radically new or different happening on Base.
The majority of the trading occurring on Base is your standard crypto activity, BALD, COIN, and BASED tokens have all been highly traded on Base.
This development has us feeling pretty optimistic. Because Base isn’t redefining crypto by any means. The enthusiasm for trading and general degeneracy is still there.
And to further the irony, Base is partnered with the Ethereum L2 blockchain, Optimism.
Coinbase’s success should be a rallying cry to the rest of crypto that it can be done.
Rather than let a bear market and cynicism define outlooks, investors and innovators should recognize that there’s still plenty of hope left in crypto.
It’s just like that old saying goes. When God closes a door, he releases a Layer-2 network.
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Top 10 Cryptocurrencies (Excluding Stablecoins)
☕️ Our Take:
Meme of the Day
Base is taking crypto by STORM. 🌪 🪙
— Coffee & Crypto Daily (@GetCoffeeCrypto)
Sep 11, 2023
Receivership: This is when a company or exchange is placed in the responsibility or “receivership” of others.
This usually occurs when a company cannot meet their financial obligations.
This occurred to Prime Trust, the fintech company mentioned in our top espresso shot. It was placed in the receivership of John Guedry, former president of the Bank of Nevada, as Prime Trust neared insolvency.
The Last Sip
We’re all excited that Ted Cruz is bullish on Bitcoin, but we think the real reason behind his recent radio interviews may not be to tout Bitcoin, but as emotional prep so that when he eventually goes on Howard Stern or Rogan, he has the depth of material to go the full four-hour tour.
Coffee & Crypto Team
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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.