Coinbase is out on a buying spree, consolidating its position by announcing almost every week a new acquisition. This one, however, is a bit different.
Paradex describes itself as an “ERC20 relayer. Trade trustlessly using your own wallet. No custodianship, no account sign-ups, no compromises.”
They’ve just been bought out by Coinbase for an undisclosed amount, with the Silicon Valley once start-up now to offer global tokens trading, minus US. Brian Armstrong, Coinbase’s CEO, said:
“The move not only reinforces Coinbase’s commitment to investing in decentralized infrastructure and participating in the nascent world of wallet-to-wallet trading, but also our focus on the international crypto trader.
After making some product enhancements, we’ll initially offer this experience to customers outside the U.S., and eventually to U.S.-customers.”
A snub to the SEC? Maybe. The opening of a race to become the crypto stock exchange? Probably. Preparations for an IPO, or dare they ICO? We’d say so.
On the SEC part, Coinbase has no choice. While the regulator might have the luxury of moving very slowly, the free market demands constant movement with preferably some speed.
Circle just recently bought Poloniex. Binance recently announced they may add dollar pairs. The rest are not even playing, but these three are eying a big prize indeed. The next Nasdaq, NYSE, the crypto stock exchange.
Whatever regulators might say or law makers, tokenization continues across the globe. From bonds, to gold, homes, perhaps even wine, soon enough maybe even stocks. Anything that can be tokenized will be tokenized.
That means a big opportunity for whoever provides a global tokens market, thus the race is on. The winner in our view will be whoever can also incorporate traditional stocks offerings, like ETFs, with the same speed and convenience as we can now buy bitcoin, eth, or indeed Bat tokens.
That might be some time off, but any transition requires maintaining the old and the new for some period until one is replaced or the other fails to replace it. Thus the two industries might eventually need to merge or collide.
Coinbase has also now gained some common sense by ditching the GDAX brand which operated on its own website in favor of Coinbase Pro which operates within Coinbase. That streamlining is welcomed because it makes sense and increases end users convenience.
So when are they to IPO? Well, sometime this year would be quite symbolic. The whitepaper turns ten in October. Just a month before it, in September, there is the tenth anniversary of the banking collapse. With that background, crypto’s debut to the global stage in probably the biggest IPO the markets have seen for some time, would be quite a story.
They probably won’t ICO, but can or should they do both? Well, Coinbase is not really known for daring moves, although perhaps this acquisition suggests they might now start to play the great game.
The game of ruthless competition, when cute start-ups turn into global corporate giants. We hope they keep their soul and remember where they came from.