I’d prefer Coinbase insider trading over Nancy Pelosi insider trading. So this isn’t the end of the world.
There’s no universe where there’s no insider trading and you’re asking me to switch the Coinbase situation for the Pelosi situation. And I prefer the Coinbase situation.
So I can accept the lesser of two evils and kick up a fuss when I don’t like it. After all, if switching to regulated finance is what you recommend, the cure is worse than the disease.
Coinbase would be frontrunning every trade you make. This would be a direct tangible loss to you. Think of it like a GME level fiasco but carried out every few weeks or so. Compared to that any insider trading Nancy does would be diffuse and unlikely to affect you personally.
Frontrunning gets you a worse price for your trade, so traders would naturally avoid exchanges which practice it in favor of others which offer a deal. There is no natural monopoly on crypto exchange services, though regulation does tend to raise artificial barriers to entry and promote centralization.
The "GME level fiasco" was only possible as a one-time event. You don't get situations like that on a recurring basis because the market adapts.
And yet Coinbase is one of the top exchanges in the world and routinely goes down for "unplanned maintenance" everytime a dip happens. Others are worse!
This is a fair point. I don't trade on Coinbase, but this is what happens at other exchanges too. It is rational to prefer the Nancy-style situation over the Coinbase situation.
There’s no universe where there’s no insider trading and you’re asking me to switch the Coinbase situation for the Pelosi situation. And I prefer the Coinbase situation.
So I can accept the lesser of two evils and kick up a fuss when I don’t like it. After all, if switching to regulated finance is what you recommend, the cure is worse than the disease.