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Coinbase Must Face Customer Lawsuit in New York Court

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Coinbase must defend itself in a lawsuit filed by customers who claim that the company illegally sold securities without registering as a broker-dealer, a federal judge ruled on Friday. U.S. District Judge Paul Engelmayer in Manhattan dismissed Coinbase’s argument that it was not a “statutory seller” under federal securities laws because it did not transfer title to the 79 tokens customers traded.

Judge Engelmayer referenced the accusation that Coinbase facilitates transactions solely between itself and the customers, which led to the conclusion that the exchange was acting as a seller. He also rejected the dismissal of claims under the laws of California, Florida, and New Jersey, agreeing that customers adequately argued that Coinbase was a direct seller of the tokens.

Coinbase has consistently stated it does not list, offer, or sell securities on its platform. The company expressed its intent to defend itself against the remaining claims in court. Customer lawyers did not immediately comment on the ruling.

This ruling comes after the 2nd U.S. Circuit Court of Appeals revived parts of the lawsuit in April 2023, which had initially been dismissed by Engelmayer in February of the same year. Customers are seeking unspecified damages.

In addition to the private lawsuit, the U.S. Securities and Exchange Commission (SEC) is also suing Coinbase, alleging the exchange allowed the trading of tokens that should have been registered as securities. Last month, a separate federal judge temporarily paused the SEC’s case to allow Coinbase to seek clarification from the 2nd Circuit on whether digital token trades fall under the definition of investment contracts.

Coinbase Acquires Spindl, an Onchain Ad Platform, to Enhance Visibility of Web3 Projects on Base

/in /tarafından

Coinbase has recently made a strategic move to enhance the visibility of Web3 projects on its Layer-2 network, Base, by acquiring Spindl, an onchain advertising platform. The details of the acquisition, including the financial terms, have not been disclosed. This acquisition signals Coinbase’s commitment to supporting the growth and outreach of Web3 developers and projects, helping them gain traction within the Web3 community. By integrating Spindl’s capabilities, Coinbase aims to provide a much-needed marketing avenue for projects, allowing them to grow their presence in the onchain ecosystem.

Base, Coinbase’s Ethereum-based Layer-2 blockchain, has been in operation since its launch in August 2023. According to the platform’s official site, Base has already attracted a wide user base, with thousands of developers spanning over 190 countries utilizing the network to build innovative Web3 projects. The growth of Base has been fueled by the increasing interest in decentralized technologies, and Coinbase’s efforts to expand its offerings have positioned it as a prominent player in the Layer-2 space.

Jesse Pollak, the creator of Base, expressed enthusiasm about the acquisition, emphasizing the importance of expanding the reach of Web3 developers. On X (formerly Twitter), Pollak highlighted that many Web3 builders have voiced the need for better marketing opportunities. With the addition of Spindl’s onchain advertising solutions, Coinbase aims to meet this demand and provide developers with the tools they need to gain visibility and recognition.

This acquisition is a clear indication that Coinbase is focused on empowering the Web3 community by offering more comprehensive support, not just in terms of technology but also in marketing and outreach. By bridging the gap between developers and their target audience, Coinbase is positioning itself as a leader in the evolving Web3 ecosystem, with a particular emphasis on making it easier for promising projects to achieve widespread adoption and success.

Bitcoin Drops to $94,000 Amid 9% Market Decline After Trump’s New Tariff Decisions

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Bitcoin Drops to $94,000 as Tariff Decisions Trigger Market Slump

Over the weekend, the cryptocurrency market saw a sharp increase in volatility following U.S. President Donald Trump’s announcement of new tariffs on imports from China, Mexico, and Canada. On Monday, February 3, Bitcoin experienced its most significant price drop in months, with the world’s leading cryptocurrency losing almost 7% of its value. According to CoinMarketCap, Bitcoin fell to $94,303 (approximately Rs. 82 lakh), down from its previous price of $104,002 (roughly Rs. 90.1 lakh) before the tariff decision. On Indian exchanges like BuyUcoin, BTC saw a smaller drop of around 5%, trading at $101,116 (roughly Rs. 88 lakh).

Ether Faces Even Bigger Losses

Ether, the second-largest cryptocurrency by market cap, faced even steeper declines than Bitcoin. On international platforms, ETH dropped by 19.51%, bringing its price down to $2,497 (around Rs. 2.17 lakh). Indian exchanges followed a similar trend, with Ether trading at $2,750 (roughly Rs. 23.9 lakh). The dramatic drop in Ethereum’s value underscores the broader market concerns, where macroeconomic factors are playing an increasingly influential role in digital asset valuations.

Market Reactions to Trump’s Tariff Decisions

The announcement of new tariffs set off a chain reaction in global markets, spilling over into the crypto space. Avinash Shekhar, co-founder of Pi42, explained that the performance of digital assets is heavily impacted by broader macroeconomic trends and investor sentiment. “The imposition of tariffs on Canada, Mexico, and China led to nearly $2 billion (roughly Rs. 17,425 crore) in liquidations across the crypto market, causing a widespread slump,” Shekhar stated. The market’s reaction highlights how sensitive cryptocurrencies are to political decisions, especially in the context of global trade tensions.

A Bleak Outlook for Crypto Assets

As global markets adjust to the implications of new tariffs, the outlook for cryptocurrencies remains uncertain. The price fluctuations of Bitcoin and Ether reflect the broader economic climate, where the confidence of investors is deeply influenced by geopolitical developments. The recent price drops have left many wondering whether this trend will continue, especially if other international policies contribute to ongoing instability in the market. For now, investors will need to navigate a landscape where digital assets remain highly volatile, with external factors continuing to play a significant role in their valuation.