The Irony on Coinbase Market Cap

Before the Bitcoin ETF universe was normalized by the United States Securities & Exchange Commission (SEC), there were fringe players which were leaders, and which were also asking for the government to clearly regulate them. The thesis was self-evident: if they were doing well before full regulation, post regulation, the skies of opportunities would open up for them.

But you know what? Immediately the SEC approved and clarified things, the big players came in, and now, the world of Bitcoin ETF is now in the hands of Blackrock and big cousins. Those small players have seen significant outflows of funds from their ecosystems as the world of money congregates to the usual stable states.

Warren Buffett cannot understand Nigeria to invest therein, making someone with $10 million to have a great chance. But if Nigeria is fully normalized, he will come with $billions and many opportunities will fade away from those small investors. Say it in another way: you cannot wait for a perfect condition because in business, it is all an illusion. As factors shift, re-alignments take shape.

Remember Coinbase. I wrote that under Trump when all the rules are largely  made free, its default status as the most trusted exchange in the US will begin to see competitive challenges. Why? Before Trump, many were afraid to do certain things in the crypto domain. But now, it is a wild race and exchanges, etc are coming up, and suddenly Coinbase has lost 13% of its market value since Trump 2.0 inauguration.

Lesson: There is no moment in business that can convey an absolute asymmetric positioning without also making you lose a competitive edge in one way. And that means we must take actions instead of waiting for a perfect ecosystem to emerge.

President Donald Trump has repeatedly pledged to end what he describes as Joe Biden’s “war on cryptocurrency” if elected, a stance he emphasized during his 2024 presidential campaign and has continued to highlight following his victory. These narrative frames Biden’s administration as hostile to the crypto industry, citing aggressive regulatory actions, while positioning Trump as a pro-crypto advocate aiming to foster innovation and make the United States a global leader in digital assets.

Comment on Feed

Comment 1: Nice expose but with respect to Coinbase, what you shared is half truth. Coinbase marketcap is down because Bitcoin price is down. Even $MSTR Microstrategy has lost 16% of its marketcap within the last one month. You will see a reversal when Bitcoin price starts going up.

My Response: It is social science, not natural science, no nothing is absolute. You made my point despite saying half-truth.  If you look at the big picture, why is Bitcoin down? And the fact that Bitcoin is down is part of my thesis as many think it will fly through the roof because of the no-regulation era. I am saying nothing like. Why? Before Trump, people were afraid to create memecoins. But when Trump and his wife began the show, people are now flooding everywhere with coins, and that is now a competition for BTC, etc. With $TRUMP, someone would have bought $BTC but with coins everywhere, there are more options.

President Trump to End Biden’s War’s on Crypto Innovations’

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