Some believe that if the identity of Satoshi Nakamoto, the creator of Bitcoin, is revealed, this could pose a huge risk to the entire ecosystem. Especially for companies whose activities revolve around the success of the most important cryptocurrency in the world. One company worried about this is Coinbase, which as reported in our previous article, is about to land at NASDAQ.
The S-1 report that the digital trading firm filed with the Securities and Exchange Commission (SEC) last Thursday listed the scenario as a possible risk to its business.
What are the risks associated with Satoshi Nakamoto's real identity?
Just like with any other company planning to go public, Coinbase mentioned potential threats to its business in the document. The possibility of Satoshi's Bitcoin transfer is another risk factor, according to the document.
If Satoshi's identity is revealed, the price of Bitcoin could fall sharply, Coinbase CEO told Business Insider, noting that the document submitted to the SEC referred to Satoshi's Bitcoin. In fact, the creator of the digital currency is said to own 1 million BTC (quotation bitcoin), mined in the early days of the cryptocurrency.
The risk is warranted, given that in May of last year the price of Bitcoin was shaken for a short period of time by the time news came out of very old Bitcoins - possibly owned by Satoshi - that suddenly broke out of. decades of "dormancy". He added to Business Insider that if the creator were to be identified, it would 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 as well as all other altcoins as a result, Coinbase's business would suffer enormously. The company said it is ready to continue benefiting from the rise in digital currencies just like in previous years.
Risks are also linked to technological progress
Another risk identified by Coinbase was the growing popularity and adoption of decentralized finance. “We are competing with an increasing number of decentralized and non-contracted platforms, and our business could be negatively impacted if we fail to compete effectively against them,” the document reads.
Coinbase also said it expects new products and technologies to continue to emerge and may be superior to its products. “Our success will depend on our ability to develop and incorporate new offerings and to adapt to technological changes and evolving industrial practices,” concluded the CEO.
Meanwhile, Bitcoin prices have returned to rise after the sharp downsizing suffered in the past few days and now try to aim for 50 thousand again. What will happen if Satoshi's identity is revealed, in reality, nobody knows, but we think that for his sake, the creator of the coin will be kept out of the scene for quite some time, relying on a not indifferent reserve.