Unchained The Chopping Block: Is Coinbase’s Base ‘the Binance Smart Chain for White People’? - Ep. 463
Mar 4, 2023
Kyle Samani, managing partner at Multicoin Capital, shares his sharp insights on Coinbase's new layer 2 solution, Base, and its unique positioning without a dedicated token. He discusses how Coinbase plans to monetize it while navigating regulatory hurdles. Samani reflects on the fallout from the FTX scandal and the new lessons in due diligence for investors. Plus, he dives into Solana's recent outage, highlighting its differences from past incidents, and shares excitement about the vibrant projects emerging from the ecosystem.
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Coinbase's Base L2
- Coinbase launched "Base," an optimistic rollup L2 on Ethereum, similar to Binance Smart Chain.
- Base differentiates itself by not having a token, unlike most exchange-launched blockchains.
Coinbase's Liability for Base
- Coinbase might face legal liability for illicit activities on Base due to their control over the sequencer.
- This centralized control contrasts with Binance Smart Chain's approach and could lead to lawsuits against Coinbase.
FTX Revenue Manipulation
- FTX's Nishad Singh pleaded guilty to fraud, including manipulating FTX's revenue figures in 2021.
- Sam Bankman-Fried instructed Nishad to transfer money from Alameda to FTX to meet revenue goals, highlighting early fraudulent activities.