Key Takeaways:
- Coinbase has teased a serious announcement scheduled for Dec. 17, with few particulars disclosed to date.
- Market hypothesis factors to a attainable entry into prediction markets, probably in partnership with Kalshi.
- Coinbase’s entry to US customers may give it an edge in a sector that has struggled with liquidity.
- Current backlash across the Monad token launch has made elements of the group extra skeptical.
- Polymarket nonetheless leads the prediction markets house, however a Coinbase entry may reshape competitors.
A significant Coinbase announcement anticipated on Dec. 17 has raised extra questions than solutions. The corporate has shared little or no to date. Coinbase has modified its avatar on X (previously Twitter), which normally indicators one thing larger is coming. Rumors are actually pointing towards prediction markets.
Coinbase is without doubt one of the largest centralized exchanges by buying and selling quantity, second solely to Binance. It additionally has an essential benefit. It could actually function immediately with US customers. That is still tough for a lot of platforms due to regulation. In that sense, Coinbase has extra freedom than most rivals.
This already places Coinbase in direct competitors with Binance. If it launches its personal prediction markets platform, it may additionally compete with Polymarket.
Prediction markets have lengthy struggled with liquidity. Volumes stay restricted, particularly exterior main occasions. Many imagine that entry for US customers may change that. Extra customers normally imply deeper markets.
Coinbase additionally controls its personal Layer 2 community, Base. A lot of its infrastructure runs on it. In 2024, Base was one of the vital worthwhile L2s. Extra not too long ago, it has been overtaken by Binance’s opBNB throughout a number of metrics. Even right here, the rivalry between the 2 exchanges is seen. Base now ranks second. It nonetheless sits forward of Arbitrum (ARB).
With this replace, Coinbase seems to be aiming for one thing larger than a easy trade position. The query is whether or not it could truly pull that off.
l‘It Will Profit Crypto Customers Least’
On the floor, the setup appears to be like favorable for Coinbase. The platform advantages from entry to US customers. Expectations of a extra crypto-friendly coverage setting below Donald Trump additionally assist. Some even count on adjustments on the Federal Reserve that might additional help danger property.
However current occasions have sophisticated the image.
The Monad (MON) token launch is a key instance. Coinbase was the one platform that hosted the ICO. It was additionally a uncommon probability for US customers to take part. Expectations had been excessive. The result upset many. Round 50% of the token provide went to insiders. After launch, MON fell almost 60% from its all-time excessive. Buying and selling additionally opened under the pre-sale worth.
That have appears to have formed how elements of the group now view Coinbase’s upcoming system replace. One consumer pointed to a Coinbase report on altseason printed in August. In addition they famous that many tokens listed below Coinbase Markets later misplaced most of their worth:
No matter this ‘system replace’ is, one factor is definite: it’s going to profit crypto customers least, and of them, Base customers nothing in any respect. We all know this for a truth as a result of Coinbase Markets did the whole lot they might to not help base cash final yr. Now 99% of these cash are near actually zero.
Is Coinbase Launching Prediction Markets?
Hypothesis round Coinbase coming into prediction markets has been constructing since November. Screenshots of a attainable interface started circulating on X. Across the identical time, speak of a partnership with Kalshi began to unfold.
These stories had been later supported by The Info, citing folks conversant in the matter. In December, Bloomberg and CNBC additionally reported that Coinbase is working with Kalshi, once more referencing unnamed sources.
Prediction markets have change into one of the vital mentioned narratives in crypto. Polymarket at present leads the house. Curiosity within the platform has grown, partly because of expectations round a attainable airdrop.
Polymarket does have one clear limitation. It’s not out there to US customers. Whereas entry is deliberate and a waitlist exists, the restriction stays.
If Coinbase does launch its personal prediction markets product, it may problem Polymarket’s place. Notably, Coinbase seems to have chosen Kalshi, considered one of Polymarket’s essential rivals, as its companion.
Nonetheless, early leaders in a distinct segment are sometimes written off too rapidly. Related arguments seem at any time when new meme coin launchpads emerge. Volumes shift for some time, however Pump.Enjoyable has repeatedly regained its prime spot. One thing comparable may occur right here. The Monad case stays a reminder that Coinbase’s makes an attempt to develop past trade companies haven’t all the time gone easily.
The put up Massive Plans Forward for Coinbase? Some Anticipate Disappointment After Monad appeared first on Cryptonews.
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