Yesterday, Coinbase publicized its S-1 filings with the SEC for a direct listing on NASDAQ. In the filing, the exchange named Bitcoin creator, Satoshi Nakamoto as a risk factor related to their challenges.
Coinbase References Satoshi Nakamoto as a Risk Factor
Satoshi Nakamoto is the pseudonymous name for the individual or group that created Bitcoin. Nakamoto formulated the original Bitcoin whitepaper in October 2008. The first mining was carried out the following year in January.
There are many claims of whom Satoshi might be, even though the identity of the person or group is still unknown. The most common claim is that of the creator of Bitcoin SV, Craig Wright. On many occasions, Wright has claimed to be the creator of Bitcoin, however, these claims have has been found to be false.
Coinbase is one of the largest crypto exchanges with about 35 million customers. As a result, the company would be at risk if Nakamoto should ever reveal his identity. This is because many crypto investors are drawn to the system because of its decentralized feature.
Could Satoshi Nakamoto Influence Bitcoin Market?
If the identity of Nakamoto is revealed, it could ruin many investors’ impression of the coin being truly decentralized. As a result, Coinbase sent a copy of its SEC filings to Satoshi as well. Indeed, it is true that Nakamoto could in a way influence to the direction of the Bitcoin market.
Based on the whitepaper, the maximum number of Bitcoin that was created is 21 million. Nakamoto, being the very first miner, rewarded himself with a Bitcoin and also allocated 1 million BTC to himself for being the creator.
Right now, Satoshi’s wallet is worth more than 5% of the initial supply. Apparently, there are few other major drivers of the crypto market, which are, sentiment, fear of missing out (FOMO) and the possibility of devalued fiats. If Satoshi should release all his BTC tokens, the market would experience a great crash. This is obvious considering Satoshi’s influence on the crypto world even though his identity is unknown.