- Coinbase on Thursday released its documents for going public through a direct listing.
- In the filing, the trading platform cites Satoshi Nakamoto’s identity as a risk factor.
- The creator’s cache of bitcoins could wreak havoc on the market if Nakamoto sold their collection.
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Coinbase on Thursday released documents for its public debut on the Nasdaq stock exchange via a direct listing.
In the filing, the digital trading platform cited as a risk factor Bitcoin’s creator, Satoshi Nakamoto — the pseudonym used by the person or group of people who created bitcoin.
If the identity of the creator was revealed, it could cause bitcoin prices to deteriorate, according to the filing.
The filing also referenced Nakamoto’s personal stash of bitcoins, which totals over 1 million. As of February, one bitcoin was worth about $50,000.
Nakamoto could negatively affect Coinbase, the company said, and destabilize the entire crypto market if the creator decided to transfer his bitcoins, which are valued at over $30 billion.
The creator was the first entity to ever mine for bitcoins, and Nakamoto’s stake in the digital currency accounts for nearly 5% of the entire bitcoin market, as there are only 21 million bitcoins that can be mined.
Bitcoin’s value has largely been driven by its deflationary tendencies. If 1.1 million bitcoins were released into the market, the digital currency’s price would almost surely fall.
Similarly, Bitcoin has been praised for its decentralized nature. The currency is not beholden to any institutions or individuals. If Nakamoto was unmasked, that would place the currency under a single entity, which could discourage traders that bought into the currency for its decentralization.
Coinbase’s success is largely tied to Bitcoin’s rise
In a nod to the Bitcoin creator, Coinbase listed Nakamoto as one of the recipients of its public filing.
Coinbase — which is valued at over $100 billion — can attribute much of its success to Bitcoin and its creator, who in 2009 developed it as the first decentralized digital currency.
In the years since, Bitcoin has largely dominated the cryptocurrency world, rising over 400% in the past year alone to easily remain the largest digital coin by market cap.
Coinbase is poised to continue to benefit from the cryptocurrency’s rise. The trading platform is the largest in the US and has over 20 million users.
The company’s founder and CEO, Brian Armstrong, referenced…