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1) Do you think the temporary shut down of Coinbase's Affiliate Programs signals a Liquidity Crisis? Why or why not?
- Maybe. But even if it does, it's not going to be the death of Coinbase. Many people underestimate just how much money Coinbase has made over the years of being the leading exchange.
2) What do companies that grow like Coinbase have to do to ensure they remain afloat in the long term?
- Cash plus innovation. Cash stores help any company weather storms and invitable market fluctuations... while building new technologies gives companies the chance to have the next big win, which can drive massive growth even if your
3) What will it mean for the Financial industry especially cryptocurrency's popularity if an exchange like Coinbase liquidates?
- This would be a big deal. If Coinbase fails, there will still be plenty of other exchanges for people to use, but it would trigger blockchain and cryptocurrency companies to completely rethink what success looks like in this space. It certainly would not mean the death of cryptocurrencies; if anything, it would strengthen the demand for decentralization - because after all, Coinbase is a centralized layer on top of decentralized technologies.
4) After the liquidity rumors. $248 million worth of stablecoins were withdrawn from Coinbase. How do you think that effects Coinbase? What does it mean for the industry at large?
- It's really hard to say without knowing the inner workings of Coinbase's balance sheet. If Coinbase operates in a way where the stable coins are NOT used for operational funds or investing, then no impact. However, if Coinbase makes use of those funds, a major financial event such as this would probably trigger them to raise funds via debt to fill the void - the point being though, that Coinbase is a big enough company to where they could do this, and forge ahead. I am hopeful that Coinbase will continue - I think most companies are needing to make adjustments right now, and that is not a bad thing. It's a sign of progress and evolution.