Crypto never sleeps. Now, neither does Coinbase. But is this a blessing, or a blessing in disguise? On the heels of the Deribit acquisition, the launch of 24/7 Bitcoin and Ethereum futures trading vaporizes any doubt about Bakkt’s commitment to crypto. Rather than demonstrating the commonwealth’s commitment to innovation, it’s an irresponsible, high-stakes bet on the emotional health of crypto investors.

Always On, Always Anxious Minds?

Let's be frank: crypto is already a pressure cooker. The volatility is real, the information overload is real, and the get-rich-quick promises are real. Even with robust CFTC regulation, 24/7 trading is putting the kettle on a roaring boil. It’s 24/7 availability, 24/7 enticement, 24/7 chance for devastation.

There is an important reason the regular stock market has closing hours. Weekends are an oasis, an opportunity to retreat, regroup, and disconnect from the constant countdown. Now, that breather is gone. You are never off, never able to disconnect from possible benefits and terrible harms.

Now, I’m definitely not suggesting that all of you out there will cave under these forces. The potential is huge and truly massive. While Coinbase is regulated and partnered with Nodal Clear for risk management, can any algorithm truly protect against a market driven by raw emotion? The issue isn’t whether it will occur, but when and how severely it will affect the retail investor. I hope that the answer turns out not to be “sooner” and “more severely” than these Coinbase executives would like to see.

  • FOMO (Fear Of Missing Out): The market never sleeps, so neither can your anxiety.
  • Emotional Trading Amplified: Sleep deprived? Stressed? You're more likely to make impulsive decisions.
  • Increased Volatility: Small corrections can quickly snowball into larger panic sells.

The timing for the Deribit acquisition is… unconventional. $2.9 billion? That’s a pretty big deal, given that it means Coinbase’s full on, serious-face mode plan to crush the crypto derivatives market. Is that a smart masterstroke or a panic-driven bid to stay competitive with Binance and Kraken?

Deribit Deal: Power Grab or Poison Pill?

Of course, the Deribit deal, when you look at it on the surface, appears to be a cash grab. It has the potential peril of overreach, greater examination, and blunted ethical mooring. Their first priority should be on responsible, moderate growth, not simply chasing short-term market share.

This tiny little advertorial for Ruvi AI with a guaranteed 20,000% ROI. Seriously? This strikes me as wildly inappropriate, particularly in the context of such a big deal announcement.

  • Increased Competition: The pressure to generate volume intensifies, potentially leading to riskier product offerings and aggressive marketing tactics.
  • Conflict of Interest? Coinbase is now a major player in both spot trading and derivatives. Can they truly act in the best interest of their customers when their own profits are on the line?
  • Regulatory Scrutiny: A larger, more powerful Coinbase attracts more attention from regulators. Any misstep could have major consequences.

It’s a troubling reminder of the twenty first century dot-com hype, speculation, and failure that continues to pollute the crypto and blockchain ecosystem. It's a flashing neon sign that screams, "Gamble responsibly… but maybe throw some money at this random altcoin!"

Ruvi AI: A Distraction or a Warning?

If Coinbase truly wants to be seen as a legitimate financial institution, they need to drop the get-rich-quick approach. Rather, they must first focus on building trust and credibility with their users. Such promotion is a sugar rush before a crash. While it will entice a handful of investors, it will deter thousands of other would-be investors.

Coinbase's 24/7 gamble is a double-edged sword. While it certainly provides greater access and opportunities, it exacerbates the psychological dangers that come with crypto trading. As active investors, we must understand these and other risks to the trade and act prudently.

Depending on how it plays out, Coinbase’s bold move either will help make crypto trading mainstream or forever damage its reputation. The ultimate result will be determined by how we, as public equity investors, decide to play to this brand new, never-off paradigm. Let's choose caution over chaos. Let's prioritize responsible investing over reckless speculation. The future of crypto depends on it.

A Call to Caution, Not Celebration

Coinbase's 24/7 gamble is a double-edged sword. It offers increased access and potential opportunities, but it also amplifies the psychological risks inherent in crypto trading. As investors, we need to be aware of these risks and trade responsibly.

Here's my advice:

  • Set clear limits: Decide how much you're willing to risk and stick to it.
  • Take breaks: Step away from the charts, especially on weekends.
  • Educate yourself: Understand the risks involved in futures trading.
  • Don't chase hype: Ignore the noise and focus on long-term value.
  • Seek professional advice: If you're struggling, talk to a financial advisor.

Coinbase's move could either revolutionize crypto trading or tarnish its reputation. The outcome will depend on how we, as investors, respond to this new, always-on reality. Let's choose caution over chaos. Let's prioritize responsible investing over reckless speculation. The future of crypto depends on it.