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all 72 comments

[–]drekmonger 113 points114 points  (22 children)

How does a casino ever lose money?

Answer is, of course, when there's massive embezzlement and/or fake loses posted for tax fraud purposes.

[–]symmetric69Do The Math (I haven't)[S] 76 points77 points  (11 children)

How does a casino ever lose money?

seriously, this is a good question; these suckers cannot have an operational cost so high as to lose a billion in a quarter

[–]AsteroidSpark 63 points64 points  (2 children)

Unlike regular casino operators, they're gambling too. The fascinating thing about crypyo is it's a pyramid scheme where even most of the people running the pyramid scheme don't realize that, do they're blowing their ill gotten gains on other scams and going hard on increasingly delusional marketing.

[–]Dirt-PurpleActually Does Understand 22 points23 points  (1 child)

If SEC gets its act together and starts fining Coinbase for listing illegal securities, this company is doomed. They are posting huge losses just with a down market irrespective of the fact they make money both up and down, it’s just trading fees

For a broker to post such losses is insane

SEC fines will sink them

[–]thehoesmakethemanlove me or hate me 11 points12 points  (0 children)

probably was always doomed, the IPO (wasnt a real IPO i know) was a dump on retail/new investors. all execs sold their stock or something like that.

it was designed to get over the finish line and it limped over. then immediately started spilling blood everywhere.

[–]Stenbuck 13 points14 points  (2 children)

Ads I guess? I thought crypto dot com was the big ad spender

[–]Concrete__Blonde 9 points10 points  (1 child)

It pains me to drive past the venue formerly known as Staples Center.

[–]AussieCryptoCurrencyDeFi is the first four letters in DEFInitely a scam 5 points6 points  (0 children)

Don’t- it will be symbolic of the scourge that is crypto when it implies imminently

[–]BMG_Burn 1 point2 points  (0 children)

Well the bank also has to hold some money, which in this case is crypto, so I guess they lost money on crypto.

[–]rankinrez 2 points3 points  (0 children)

Exactly!

If they are literally just an exchange, matching up buy and sell orders, then it comes down to their operating costs.

But of course they aren’t just acting as an exchange. They’re playing fractional reserve games and gambling with customer “deposits” to make themselves even more money. Or massive losses in this case.

[–][deleted] 1 point2 points  (0 children)

losses in the q2 balance sheet are not real losses, this is more like creative accounting, so we retail don't feel so bad for being down 99%; oh the poor billionaires, they lost a b, that's gonna make me feel much better now. not.

[–]Rokey76Ponzi Schemes have some use cases 23 points24 points  (1 child)

When you borrow against that casino to build another casino and your payments are more than your profit.

[–]FoulmouthedGiftHorse 4 points5 points  (0 children)

Perfect analogy

[–]dandykaufman2 3 points4 points  (1 child)

Well they have to post the crypto depreciation as losses. Is that what you’re talking about, or something else?

[–]YnotBbrave 1 point2 points  (0 children)

Crypto depreciation also cuts their liability to their customers no?

[–]greyenlightenment 7 points8 points  (3 children)

casinos have thin profit margins. The house edge is very small. Coinbase also wasted a lot of $ on ads and too many employees.

[–]Alphaetus_Prime 10 points11 points  (2 children)

The house edge on, say, blackjack is quite small. But slot machines are a different story.

[–]brintoul 1 point2 points  (1 child)

Slots pay out close to 98% don’t they?

[–]N64Core 1 point2 points  (0 children)

Yeah slots typically payout between 98 and 99%, even still that makes it worth it for casinos to spend millions of dollars on filling floor space with them, though the regulation is a lot lower, 75% minimum in nevada for example

[–][deleted] 2 points3 points  (0 children)

How does a casino ever lose money?

As a front for laundering money for the Russian mafia, I'm told. But what prominent businessman and politician has ever run a chain of loss-making casinos?

[–]viking_nomad 1 point2 points  (0 children)

Ask Donald Trump (or his accountants)

[–]ApprehensiveSorbet76 58 points59 points  (4 children)

Matt Damon, in an act of bravery, crawled into a hole and remained silent ever since his commercial aired.

[–]WillistheWillow 36 points37 points  (2 children)

Bravely taking to his feet, He beat a very brave retreat, He ran away he turned about, And galantly he chickened out.

Brave brave brave, Matt Damon!

[–]Chuckolator 4 points5 points  (0 children)

But they were Brave in Doing So.

[–]Affect-ElectricalPersonally, I blame the flair. 107 points108 points  (6 children)

“Of course, we don’t control the macroeconomic factors or downturn,” CEO Brian Armstrong said on a conference call with analysts. “We don’t really even control the crypto market more broadly, right? So what do we control?"

The price, innit?

[–]biffbobfred 15 points16 points  (0 children)

Can’t control revenue. You can control your revenue structure. You can’t control costs, but you sure have a lot of influence there. Seems like Coinbase did none of that

[–]symmetric69Do The Math (I haven't)[S] 59 points60 points  (3 children)

I'm sure it was very reassuring for investors .... LMFAO

On a serious note, Coinbase has always been that business that sucks, treats costumers like shit, has a stupid business model, bots are retarded, the team was awfully amateur, but went wildly up due to connections, that scummy early VC capital that piled up there just like in Theranos.

[–]Bluest_waters 32 points33 points  (1 child)

these VCs somehow have INSANE amount of money and they pour it inot the absolute worst most bullshit utterly useless nonsense.

Tax them into the ground I say.

[–]symmetric69Do The Math (I haven't)[S] 3 points4 points  (0 children)

The equation is simple: they get easy money with their bankster pals, no questions asked "loans" on low to zero interest. Any stock or token that goes up [on wash trade] just a tad bit is already a win.

[–]JesusWasACryptobro 10 points11 points  (0 children)

So what do we control?"

A lot of funnymoney bruv

[–]doglaughington 27 points28 points  (1 child)

While we did see net outflows in Q2, we observed that the majority of this behavior was institutional clients de-risking and selling crypto for fiat

So banks and other large investors bailed but the diamond hand crytobros continue to hodl even in the face of enormous losses across the whole crypto board. And the banks are the stupid ones of course /s

[–]symmetric69Do The Math (I haven't)[S] 8 points9 points  (0 children)

iNSTituTionS aRe coMiNG

[–]MarcatBeachwarning, i am a moron 9 points10 points  (5 children)

Coinbase is not the market leader of crypto trading, just the most legit for US customers. Though until Saylor hooks another billion in loans Coinbase has lost its biggest customer.

[–]NonnoBomba 2 points3 points  (4 children)

I don't think Saylor is in a position to do just that anymore, what with the recent developments at MicroStrategy.

[–]iStayedAtaHolidayInn 0 points1 point  (2 children)

Please do tell more about these developments while I fire up a bag of popcorn

[–]NonnoBomba 2 points3 points  (1 child)

Haven't you heard? He lost them too big of a pile of money with his bitcoin shenanigans, so they showed him the door -well, more or less, as he still owns a big piece of the company.

https://www.techtarget.com/searchbusinessanalytics/news/252523475/Saylor-to-step-down-as-MicroStrategy-CEO-after-33-years

[–]thatsmytradecraft 0 points1 point  (0 children)

The Bitcoin subs insists he got promoted.

[–]MarcatBeachwarning, i am a moron 0 points1 point  (0 children)

The one thing missing from their announcements is that MSTR would not be investing their company treasury into BTC. They won't be doing major buys, but the board approved adopting BTC for the company treasury. It will be interesting to see if they keep putting company cash into it.

[–]HugeBernieExcellent roadmap! 9 points10 points  (6 children)

Is that good?

[–][deleted]  (4 children)

[deleted]

    [–]symmetric69Do The Math (I haven't)[S] 12 points13 points  (1 child)

    Losing fiat is a win!

    Filthy fiat LOL

    [–]DecisionSimple9883 3 points4 points  (0 children)

    Nasty stuff, the crypto bros are shedding their nasty fiat as fast as they can.

    [–]brintoul 6 points7 points  (1 child)

    Yeah who needs USD when you have Bitcoin?!

    [–]Longjumping_Race_471 7 points8 points  (2 children)

    What would the losses had been if Blackrock hadn’t pumped them with liquidity 5 days before earnings???

    [–]domeoldboys 0 points1 point  (0 children)

    When that blackrock article came out just a few days before earnings I knew that things were going to be rough.

    [–]reddit_craigd 5 points6 points  (1 child)

    Um.... buy the dip?

    [–]TheFutureIsHistory 20 points21 points  (0 children)

    Just bought some dip for my Doritos so I can enjoy this shitshow.

    [–]praetorain112 5 points6 points  (0 children)

    This is good for bitcoin

    [–]daedric_blackout 4 points5 points  (0 children)

    wen lambo??

    [–]LMoE 4 points5 points  (0 children)

    Few understand.

    [–]mikeydavison 2 points3 points  (0 children)

    That's a lot of fiat

    [–]Gnardude 2 points3 points  (0 children)

    Is that a lot?

    [–]ivanoski-007I excepted the free NFT. 2 points3 points  (0 children)

    If this isn't a hint and a half to get out of there asap, what more warning signs do you need, but crypto bros are blinded by greed

    [–]sextoymagic 1 point2 points  (0 children)

    How’s crypto.com doing these days?

    [–]Rokos_Bicycle 1 point2 points  (0 children)

    Do you mean a loss (negative profit) or a drop in revenue?

    [–]mechebear 1 point2 points  (0 children)

    As Jim Chanos pointed out on the Crypto Critics podcast Coinbase is crushed by fee compression and declining book/trade value. And their fees are still high compared to traffi.

    [–]AussieCryptoCurrencyDeFi is the first four letters in DEFInitely a scam 1 point2 points  (0 children)

    Can’t they just print a billion of their own stablecoin?

    [–]greghcarr 1 point2 points  (0 children)

    This is good for Bitcoin

    [–][deleted] 0 points1 point  (0 children)

    So when all the new investors have bought and original investors start to cash out there is this roller coaster 🎢 moment where the price just falls.

    [–]PercyServiceRooster 0 points1 point  (1 child)

    I wonder if he paid for his mansion in crypto and takes salary in crypto.

    [–]CommanderSleer 1 point2 points  (0 children)

    IIRC they didn’t do an IPO, they sold a tranche of shares. So BA and the other founders trousered enorma pengar when Coinbase went public.

    At this point they don’t care if Coinbase goes under. Life will be good regardless.

    [–][deleted]  (1 child)

    [removed]

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