Famed short seller Jim Chanos had some cutting words about Coinbase’s business model, calling the crypto exchange “symptomatic of the predatory junkyard that is crypto” in an interview with CNBC.
He highlighted the high costs in the industry as being a serious issue going forward, saying “this is a really high-cost industry that needs lots of activity and needs really high commission rates to make money.”
“If you're losing money now, charging retail customers 2.5% a round trip, that’s not a good business model,” he added. The conversation came as part of a wider discussion about the impact of higher interest rates on the U.S. economy.
The American investment manager, who heads up Kynikos Associates, has built a reputation for making bold predictions since his career kicked off in the early 1980s. He’s perhaps most well-known for taking a short position on Enron prior to its 2001 bankruptcy.
Chanos pointed to how Coinbase controls “about 10%” of the global crypto market and burns...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...