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Coinbase is not decentralized finance, it's a centralized crypto bank. > the fluff around decentralized finance being more fair just because it is public and “
by null0pointer 4y ago
Coinbase is not decentralized finance, it's a centralized crypto bank.
> the fluff around decentralized finance being more fair just because it is public and “open” is naive at best
As another commenter pointed out, the investigation was triggered by this tweet [0]. How is that not more open and fair? If there wasn't a public record of the transactions, like in traditional finance, this guy would have likely gotten away with it.
0: https://twitter.com/cobie/status/1513874972552355846 https://twitter.com/cobie/status/1513874972552355846
- uncomputation 4y agoBecause there still exists informational asymmetry where the platform/exchange owners (and all employees privy to that information) still have material advantage over their customers but can now manipulate them easier than they can in traditional systems. With traditional systems, you have to purchase shares with your real name and thus regulators are able to detect patterns easier. In DeFi, these guys just spun up new anonymous wallets each time and if they were slightly better at it, they likely never would’ve been caught. Getting to parity of current insider trading detection in DeFi would require massive data analysis constantly keeping track of which wallets make suspiciously timed trades, leading to the same financial surveillance and de-anonymity DeFi wants to solve. One good tweet is not enough to validate the whole system.