Connect with us

Business

Coinbase’s new super app Base: summary and review

Published

on


I’ve covered Coinbase since it was a tiny startup but have never seen anything quite like what the crypto giant rolled out this Wednesday. At a carefully produced stage event in Los Angeles, the company unveiled an app called Base, which is named for Coinbase’s own blockchain, and is billed as a “super app” that offers everything from payments to AI agents to a social network.

All of this isn’t exactly new. For years, Coinbase and other crypto firms have been fiddling with blockchain-based alternatives to services like Facebook and Apple’s App Store. But these offerings came wrapped in a clunky interface that forced users to jump through a variety of crypto hoops, meaning they had little appeal to anyone who was not a blockchain die-hard.

The new Base app is different. It looks and behaves a lot like apps you know, and a single tap brings you to its X-like social network and to pages for trading or sending money. And in a critical decision, Base includes an option to add funds—including the popular USDC stablecoin—using Apple Pay, which makes it accessible to those who don’t want to deal with opening a traditional crypto wallet.

The Base App isn’t entirely new in that it is a rebrand of the company’s existing Coinbase Wallet, which has housed a variety of semi-decentralized services. Base, though, is far easier to use and also solves a long-time branding problem that left users confused about the difference between the core Coinbase app—where you buy and sell crypto—and Coinbase Wallet. Here’s what Base looks like:

For now, Coinbase is only rolling out the Base app to those on a waitlist, and it’s too soon to say if it will get traction among the general public. But the app has a series of features that mean the promise of so-called Web3, which till now has amounted to little more than crypto marketing mumbo-jumbo, could become an everyday reality. Meanwhile, Base could evolve in the medium-term into a serious revenue stream for Coinbase and help it muscle into territory currently held by fintechs and Big Tech firms.

A portable identity for the web

Services like Instagram and Google are hugely popular for a reason. They are free, useful and entertaining but still come at a cost for users, who must surrender control over their personal data as the price for using them. This situation is what led crypto people to tout “Web 3” as an alternative. The idea is that, instead of relying on the likes of Facebook to control your personal data, you control it yourself using decentralized blockchain.

A key part of this Web 3 ideal, which so far has got little traction outside crypto circles, is the idea of a sovereign identity for the internet. For practical purposes, this is a log-in you can use all over the place in the same way you can use your Facebook or Google ID to sign into many websites, but that lets you also connect to contacts, photos and more.

Various crypto firms have been touting versions of a sovereign web identity for years but they failed to catch on. In part, this has been because of a clumsy user experience. But it’s also because these crypto IDs haven’t really been good for much: They don’t cut it as any sort of ID in the real world and, even within crypto realms, there’s not a whole lot you can do with them. So what’s the point?

I put this directly to Jesse Pollak, the Coinbase executive who leads Base, and he acknowledged that the crypto industry has yet to give the public a good reason to use blockchain-based ID. He added, though, that big tech firms have succeeded in making their identity tools very useful to consumers.

“Apple, Google and Facebook have built valuable IDs because the product they offer is valuable,” adding that Coinbase’s goal is to build a service that is equally valuable on a day-to-day level.

This value, Pollak says, will come if the new Base super-app can take off and become part of millions of consumers’ daily online life. He also noted that governments are getting better when it comes to the technology of ID, pointing to recent innovations like state DMVs issuing smart drivers licenses, and passports containing NFC chips. Pollak thinks that, in time, this will open the door to developers building applications that can supply a government-issued credential in situations that require it.

All of this could lead portable, blockchain-based identities to move from the fringe to more mainstream uses. This could include more consumers encountering Base’s sign-on offering alongside ones from Apple and others like this:

A new revenue stream for Coinbase

Coinbase’s new Base offering is an ambitious attempt to put a crypto offering at the center of consumers’ daily lives. The effort is also not cheap. The company has not only invested millions building and developing the app, but is also spending heavily on marketing costs such as the Los Angeles launch, which included a roof-top party for hundreds of Base partners and fans.

This could all pay off for Coinbase, though, if the app achieves the sort of viral growth that Pollak says it’s shooting for. While the company hasn’t explained the revenue strategy for Base, it’s easy to discern two opportunities.

The first would come from more users becoming exposed to Bitcoin and other cryptocurrencies, and buying from Coinbase’s exchange. This would help juice the trading revenue that has long been the company’s bread and butter.

The other revenue opportunity is more intriguing and potentially much bigger. It comes in the form of using Base to promote the adoption of the USDC stablecoin as a peer-to-peer payment vehicle and, especially, as a currency for online shopping. It’s pretty clear this is where Coinbase is going based on several slides at the L.A. presentation, and from the participation of executives from online shopping giant Shopify, whose CEO sits on Coinbase’s board.

Coinbase is also rolling out incentives for those who use what it calls “Base Pay,” including 1% cashback for USDC purchases.

If Base Pay and other USDC uses catch on, it will directly benefit Coinbase’s bottom line since the company gets a share of the interest from the stablecoin reserves that USDC. That interest has already made significant contributions to Coinbase’s quarterly earnings and, if Base makes USDC more popular, that income stream will keep growing.

All of this, of course, is the best case scenario for Coinbase and Base. Even though the company has finally created a blockchain-based app experience that can hold its own against Big Tech style apps, it must still persuade people to use it. And while it’s too soon to say if Base can achieve mainstream adoption, it’s notable that the audience at the LA event skewed very young, and that the accompanying livestream notched 1.6 million viewers, according to a Coinbase exec.

It also remains to be seen if Coinbase can follow through on its promise to make Base a level playing field where any developer can build. Many developers who built projects on sites like Facebook and Twitter learned the hard way that building on another company’s platform puts them at the mercy of getting snuffed out. Pollak and others at Coinbase are quick to say the decentralized blockchain architecture of Base means this can’t happen but it’s not hard to imagine the company finding ways to favor some projects over others.

Putting aside these doubts, Coinbase investors can also take heart that, as the company grows ever bigger, it is still capable of innovating. I spoke briefly with CEO Brian Armstrong who told me that he thinks often about how to preserve a frontier-style mentality even as a big public company and, that to do so, he has made a point of elevating other founders—including Pollak—to the C-suite as a hedge against bureaucratic complacency.

If Armstrong succeeds at this, and if Base can grow into its outsized ambitions, Coinbase could well be a force in the coming decade not only in crypto but in the broader tech and financial landscape.



Source link

Continue Reading

Business

Epstein grand jury documents from Florida can be released by DOJ, judge rules

Published

on



A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.

U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.

The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.

Friday’s court ruling dealt with the earliest known federal inquiry.

In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.

Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.

In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.

The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.

A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.

A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.

Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.

When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.

The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.

One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.

A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.

The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.

___

Sisak reported from New York.



Source link

Continue Reading

Business

Miss Universe co-owner gets bank accounts frozen as part of probe into drugs, fuel and arms trafficking

Published

on



Mexico’s anti-money laundering office has frozen the bank accounts of the Mexican co-owner of Miss Universe as part of an investigation into drugs, fuel and arms trafficking, an official said Friday.

The country’s Financial Intelligence Unit, which oversees the fight against money laundering, froze Mexican businessman Raúl Rocha Cantú’s bank accounts in Mexico, a federal official told The Associated Press on condition of anonymity because he was not authorized to comment on the investigation.

The action against Rocha Cantú adds to mounting controversies for the Miss Universe organization. Last week, a court in Thailand issued an arrest warrant for the Thai co-owner of the Miss Universe Organization in connection with a fraud case and this year’s competition — won by Miss Mexico Fatima Bosch — faced allegations of rigging.

The Miss Universe organization did not immediately respond to an email from The Associated Press seeking comment about the allegations against Rocha Cantú.

Mexico’s federal prosecutors said last week that Rocha Cantú has been under investigation since November 2024 for alleged organized crime activity, including drug and arms trafficking, as well as fuel theft. Last month, a federal judge issued 13 arrest warrants for some of those involved in the case, including the Mexican businessman, whose company Legacy Holding Group USA owns 50% of the Miss Universe shares.

The organization’s other 50% belongs to JKN Global Group Public Co. Ltd., a company owned by Jakkaphong “Anne” Jakrajutatip.

A Thai court last week issued an arrest warrant for Jakrajutatip who was released on bail in 2023 on the fraud case. She failed to appear as required in a Bangkok court on Nov. 25. Since she did not notify the court about her absence, she was deemed to be a flight risk, according to a statement from the Bangkok South District Court.

The court rescheduled her hearing for Dec. 26.

Rocha Cantú was also a part owner of the Casino Royale in the northern Mexican city of Monterrey, when it was attacked in 2011 by a group of gunmen who entered it, doused gasoline and set it on fire, killing 52 people.

Baltazar Saucedo Estrada, who was charged with planning the attack, was sentenced in July to 135 years in prison.



Source link

Continue Reading

Business

Elon Musk’s X fined $140 million by EU for breaching digital regulations

Published

on



European Union regulators on Friday fined X, Elon Musk’s social media platform, 120 million euros ($140 million) for breaches of the bloc’s digital regulations, in a move that risks rekindling tensions with Washington over free speech.

The European Commission issued its decision following an investigation it opened two years ago into X under the 27-nation bloc’s Digital Services Act, also known as the DSA.

It’s the first time that the EU has issued a so-called non-compliance decision since rolling out the DSA. The sweeping rulebook requires platforms to take more responsibility for protecting European users and cleaning up harmful or illegal content and products on their sites, under threat of hefty fines.

The Commission, the bloc’s executive arm, said it was punishing X because of three different breaches of the DSA’s transparency requirements. The decision could rile President Donald Trump, whose administration has lashed out at digital regulations, complained that Brussels was targeting U.S. tech companies and vowed to retaliate.

U.S. Secretary of State Marco Rubio posted on his X account that the Commission’s fine was akin to an attack on the American people. Musk later agreed with Rubio’s sentiment.

“The European Commission’s $140 million fine isn’t just an attack on @X, it’s an attack on all American tech platforms and the American people by foreign governments,” Rubio wrote. “The days of censoring Americans online are over.”

Vice President JD Vance, posting on X ahead of the decision, accused the Commission of seeking to fine X “for not engaging in censorship.”

“The EU should be supporting free speech not attacking American companies over garbage,” he wrote.

Officials denied the rules were intended to muzzle Big Tech companies. The Commission is “not targeting anyone, not targeting any company, not targeting any jurisdictions based on their color or their country of origin,” spokesman Thomas Regnier told a regular briefing in Brussels. “Absolutely not. This is based on a process, democratic process.”

X did not respond immediately to an email request for comment.

EU regulators had already outlined their accusations in mid-2024 when they released preliminary findings of their investigation into X.

Regulators said X’s blue checkmarks broke the rules because on “deceptive design practices” and could expose users to scams and manipulation.

Before Musk acquired X, when it was previously known as Twitter, the checkmarks mirrored verification badges common on social media and were largely reserved for celebrities, politicians and other influential accounts, such as Beyonce, Pope Francis, writer Neil Gaiman and rapper Lil Nas X.

After he bought it in 2022, the site started issuing the badges to anyone who wanted to pay $8 per month.

That means X does not meaningfully verify who’s behind the account, “making it difficult for users to judge the authenticity of accounts and content they engage with,” the Commission said in its announcement.

X also fell short of the transparency requirements for its ad database, regulators said.

Platforms in the EU are required to provide a database of all the digital advertisements they have carried, with details such as who paid for them and the intended audience, to help researches detect scams, fake ads and coordinated influence campaigns. But X’s database, the Commission said, is undermined by design features and access barriers such as “excessive delays in processing.”

Regulators also said X also puts up “unnecessary barriers” for researchers trying to access public data, which stymies research into systemic risks that European users face.

“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users,” Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security and democracy, said in a prepared statement.

The Commission also wrapped up a separate DSA case Friday involving TikTok’s ad database after the video-sharing platform promised to make changes to ensure full transparency.

___

AP Writer Lorne Cook in Brussels contributed to this report.



Source link

Continue Reading

Trending

Copyright © Miami Select.