Leon Neal Coinbase Global, Inc. (NASDAQ: COIN ) stock plummeted 14% yesterday (Feb. 9) with rumors that surfaced regarding a potential SEC ban on crypto staking in the United States. These rumors were triggered with the popular crypto exchange Kraken agreeing to pay $30 million to settle SEC allegations that its staking products were violating securities laws in the United States. As part of the agreement reached with the SEC, Kraken will also discontinue its staking products in the U.S. but these products will be available to international traders via a subsidiary of the company. With the SEC promising to tighten its grip on the crypto industry in light of risks associated with many crypto products, investor fears stemming from Kraken’s settlement with the SEC seem justifiable. This analysis aims to shed light on how crypto staking works, the importance of Coinbase’s staking business, and the outlook for this business segment. What is Crypto Staking? From a trader’s perspective, staking is the practice of locking up some or all crypto assets owned by an investor in exchange for a percentage-rate return. Every cryptocurrency uses a consensus mechanism to validate and verify transactions to add them to the blockchain. There […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
