Coinbase will be released as a direct listing on the Nasdaq on Wednesday. According to NasdaqTrader, the company was awarded a reference price of $250 a share.
Coinbase said Satoshi Nakamoto, the pseudonym used by individuals or groups of people who developed bitcoin, in the documents published by the company for his public debut in February, could cause considerable damage to the company.
If the creator’s identity has been revealed, the file indicates that Bitcoin prices could deteriorate.
The document also mentioned the personal stash of Nakamoto Bitcoins, which amounts to more than 1 million. As of April, over $64,000 worth of a bitcoin was a record.
Nakamoto might have a negative effect on the entire crypto market and destabilize Coinbase if the developer decides to transfer his bitcoins valued at over $30 billion.
The designer was the first entity ever to be a mine for bitcoins, and Nakamoto’s participation in the digital currency accounts for almost 5% of the whole Bitcoin market, since only 21 million bitcoins are mined. The whole market of Bitcoin is over 1 trillion dollars.
The value of Bitcoin has been driven largely by its deflationary trends. The price of digital currency would almost surely drop if 1,1 million Bitcoins were released to the market.
Likewise, the decentralized nature of Bitcoin was praised. No institutions or individuals shall be liable for the currency. When Nakamoto is unmasked the currency would be placed under a unit which could deter traders who purchased it for decentralization into the currency.
Coinbase’s success is largely tied to Bitcoin’s rise
In a note to the creator of Bitcoin, Coinbase listed Nakamoto as one of its recipients.
Coinbase can give Bitcoin and its creator a large portion of its success, who developed it as the first digital decentralized currency in 2009.
Bitcoin dominated the world of cryptocurrency in the years since, rising above 400 percent only in the last year, making it easy to remain the biggest digital coin by market cap.
Coinbase is ready to continue benefiting from the increase in cryptocurrency. The largest trade platform in the US with more than 20 million users. The platform
In his letter included in the public filing in February, the company’s founder and CEO, Brian Armstrong mentioned the invention of Bitcoin.
“I found that this breakthrough in computer science was the key to unlocking this vision of the future, when I first read the Bitcoin White Paper back in 2010.,” says Armstrong. “Cryptocurrency can provide anybody with the core principles of economic freedom: rights to property, good money, free trade, and the ability to operate where and how they want.”
After the white paper was released, the name of Nakamoto first came to public attention. The paper outlined the principles of a decentralized digital payment system for peers. The creator left the system in 2011 but remained a figure of public interest.
Over the years the creator’s identity was widely speculated. Names like Nick Szabo, Bitcoin developer, Craig Wright and Elon Musk, CEO of Tesla, were put forward as potential currency designers.
Although it is not known whether Nakamoto will ever decide to transfer its bitcoin cache, the creator never seems to disclose his identity.
Nakamoto could avoid legal implications by maintaining anonymity. Bitcoin’s untraceable nature has also led to its use in the dark for illegal goods and services. In January, Treasury Secretary Janet Yellen demanded that digital currencies like bitcoin be restricted because they are used to fund illicitly.
The disclosure would also violate one of the basic principles of Bitcoin that were outlined in its white paper. If a creator was unmasked, the decentralized nature of the currency would be threatened – a Nakamoto tenet put at the center of his Bitcoin plans.