Even Coinbase would suffer
Some feel that if Satoshi Nakamoto, the creator of Bitcoin, is unmasked, it could pose a major risk to the Bitcoin ecosystem and to companies whose businesses revolve around the success of the dominant cryptocurrency. One company that cares about this is Coinbase, which is planning to go public listing on NASDAQ.
The S-1 record of the digital trading platform with the Securities and Exchange Commission (SEC), which was released on Thursday, listed the scenario as a possible risk to its business.
Just like any company that wants to go public, Coinbase mentioned potential threats to your business in the process. The possibility of passing on Satoshi’s Bitcoins is another risk factor, according to the protocol.
If Satoshi’s identity is revealed, Bitcoin’s price could deteriorate, said Business Insider, noting that the SEC filing makes reference to Satoshi’s Bitcoins. The creator is said to have 1 million BTC, extracted in the early days of the cryptocurrency.
The risk is guaranteed, given that in May last year, the price of Bitcoin was briefly shaken by news of very old Bitcoins – possibly owned by Satoshi – suddenly emerging from decades of dormancy. Business Insider added that if the creator is identified, it will pose a threat to the decentralized nature of Bitcoin.
If Satoshi’s identity is revealed, which would result in a drop in the price of Bitcoin, Coinbase’s business will be affected. The company said it should continue to benefit from the rise in digital currencies, just as it did in previous years.
Another risk identified by Coinbase was the growing popularity and adoption of decentralized finance.
“We compete against an increasing number of decentralized and non-custodian platforms and our business could be adversely affected if we are unable to compete effectively against them,” the document said.
Coinbase also said that it expects new products and technologies to continue to emerge that may be superior to its products.
“Our success will depend on our ability to develop and incorporate new offerings and adapt to technological changes and evolving industry practices,” he concluded.