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first_img Coinbase's net profit in the third quarter was 719 million USD, mainly from cryptocurrency holdings income

Cryptocurrency exchange Coinbase announced its third-quarter financial report, achieving a net profit of $719 million, equivalent to a diluted earnings per share of $2.51, ending two consecutive quarters of losses; the market had previously expected a loss of $0.15 per share. Approximately $715 million came from the appreciation of cryptocurrency assets held as investments by the company. After excluding related investment income, the adjusted net profit was $78 million. Total revenue was $1.22 billion, in line with expectations, remaining flat quarter-over-quarter and down 35% year-over-year. Trading revenue decreased by 1% to $590 million, but was above analysts' expectations of about $527 million; during the period, cryptocurrency market volatility fell to a multi-year low, and overall market trading volume declined.The prediction market business is expected to achieve an annualized revenue exceeding $200 million, becoming one of the fastest-growing products in Coinbase's history. Daily active traders grew by over 60% compared to the previous quarter, with revenue from this business growing at a compound rate of 82% each quarter since its launch. CEO Brian Armstrong stated that the product "continues to grow even during the off-season for sports events." Subscription and service revenue grew by 3% to $570 million, approaching half of net revenue, with stablecoins contributing $307 million; the average amount of USDC held in Coinbase products reached a record $22 billion, and the number of Coinbase One paid subscribers hit an all-time high, growing 24% year-over-year, with its share of global cryptocurrency trading volume rising to 10.7%, marking the fourth consecutive quarter of increase. CFO Alesia Haas stated that the prediction market has provided another revenue source with lower correlation to cryptocurrency volatility.Coinbase has lowered the midpoint of its adjusted expense guidance for 2026 by $100 million, to $4.15 billion to $4.3 billion, having already implemented cost reductions in May. Adjusted EBITDA grew by 60% quarter-over-quarter to $333 million; as of October 25, fourth-quarter trading revenue is approximately $165 million. In the previous two quarters, the company recorded losses of $394 million and second-quarter results that fell short of expectations. Before the earnings report was released, the stock price closed at $160.59, down 1.1%, with little change in after-hours trading, having fallen over 55% from a 52-week high of $361.4.

first_img The Central Bank of Russia approved NAUFOR to act as a self-regulatory organization for the cryptocurrency industry

According to Bitcoin Magazine, on October 29, the Central Bank of Russia approved the National Association of Participants in the Securities Market (NAUFOR) to become the country's first self-regulatory organization for cryptocurrency exchanges and digital custodians. This move implements the "Digital Currency and Digital Rights Law," which was passed by the State Duma in July, into an operational system. The law requires exchange operators and digital custodians to enter the central bank's registry and must join a self-regulatory organization.The central bank's registry currently includes 23 cryptocurrency exchanges and 8 digital custodians, including VTB, Sberbank, and T-Bank's parent company T-Technologies. Companies listed in the registry must complete their membership within 90 days. The self-regulatory organization is responsible for setting industry standards, supervising members, and communicating with regulators on behalf of the industry.NAUFOR stated that it will participate in the formulation of standards for the digital asset market and promote adjustments to the rules by the central bank. The association earlier this month obtained similar qualifications in the field of information system operators and currently has 725 members.The law prohibits the use of Bitcoin for everyday payments, and domestic cryptocurrency payments remain banned. It also issues licenses to exchanges and custodians, limits retail investors' purchase amounts, and establishes state-regulated cross-border trading channels. Non-qualified retail investors can purchase up to 300,000 rubles, approximately $3,800, per year through a single intermediary. Additionally, the Moscow Exchange has tested cryptocurrency trading with professional market participants and plans to launch in December; Sberbank has also been approved to custody Bitcoin and other cryptocurrency assets.

Huobi HTX has reached constructive communication with the Financial Conduct Authority (FCA) of the United Kingdom, and the related lawsuit has been properly resolved

Huobi HTX announced that the UK Financial Conduct Authority (FCA) had previously initiated legal proceedings against the exchange in the UK. After a period of constructive communication between both parties, the matter has now been properly resolved.Huobi HTX has always sincerely cooperated with the FCA, actively collaborating and responding to its concerns regarding the UK market. During this period, Huobi HTX, based on its commitment to continuously adhere to compliance standards, has gradually strengthened restrictions related to the UK market and exit arrangements, and implemented supporting operational measures.These measures were already in place before this settlement was reached. The settlement further consolidates the aforementioned measures and does not constitute an admission of any legal liability, misconduct, or violations by Huobi HTX.The settlement eliminates relevant legal uncertainties and is consistent with the exchange's commitment to continuously enhance compliance levels. This is beneficial for Huobi HTX to focus on the most important matter, which is to provide high-value services to users and achieve long-term sustainable growth.Huobi HTX thanks all parties for their professional cooperation in properly concluding this matter and will continue to focus on responsibly serving users. Looking ahead, Huobi HTX is willing to constructively cooperate with all parties in the industry, including working hand in hand with regulators where appropriate, to jointly safeguard user interests and promote the healthy development of the digital asset ecosystem.

first_img Yield Basis launched the permissionless propAMM, prioritizing the deployment of the WETH pool

The automated market-making protocol Yield Basis, founded by Curve founder Michael Egorov, announced the launch of a permissionless propAMM, aiming to upgrade its liquidity mechanism on Curve. This design combines market perception pricing with dynamic fees, aiming to increase trading volume, reduce arbitrage losses, and improve liquidity provider returns. According to its simulations over the past 18 months, Yield Basis's WETH position is projected to grow at an annualized rate of 8.5% in ETH terms under the new design, compared to 3.6% under existing parameters.Officials stated that WETH liquidity providers do not need to take additional actions, as the new design will directly affect their respective liquidity pools. The small transaction fee for pulling the pool price back to the market price is 0.50%, and anyone can submit prices or deposit funds, with the relevant code being open source. The WETH pool will be deployed first, and Bitcoin-related liquidity pools will follow after the successful deployment of the WETH pool.According to the announcement, the liquidity pool will charge based on the profits earned by arbitrageurs from trades, retaining about two-thirds of the profits above the minimum fee. The new design features lower single transaction fees, with simulated trading volumes approaching three times the current levels, requiring donations of about one-quarter of the current amount. The Yield Basis DAO owns the strategy, and the Curve Emergency DAO can shut it down in emergencies, while the Curve liquidity pool contract itself remains unchanged. Curve DAO vote 1508 will connect the strategy to the WETH pool and set the reserved profit ratio, while Yield Basis vote 60 will set the LevAMM fee at 1.5% (currently 1.3%), with the donation rate being about 1.2% of the pool value per year (currently about 5%). The above simulations only include arbitrage exchanges and do not account for regular trading and liquidation.

first_img New York State legislates strict limits on AI companions, prohibiting the provision of anthropomorphic emotional interactions to minors

New York Governor Hochul officially signed a new bill on Wednesday, prohibiting minors from using artificial intelligence chatbots with virtual companion attributes. This is one of the most comprehensive regulatory measures in the United States regarding consumer-grade AI models to date. The bill requires relevant operators, including ChatGPT under OpenAI, to implement reasonable age verification measures, prohibiting the provision of high-risk chatbot features listed in the bill to users under 18 or those whose adulthood has not yet been confirmed.According to the bill, the relevant chatbots are not allowed to output content that may mislead minors into believing they possess life, human attributes, or real emotions. They must not induce adolescents to have the illusion of a mutual emotional, professional consulting, or authoritative guidance relationship, nor can they package generated content as personal opinions. The system is also prohibited from retaining sensitive privacy data related to the mental and physical health of minors. Hochul stated at the signing ceremony that the core goal of the legislation is to sever the emotional binding chain of AI impersonating minors' "friends" or "lovers," protecting the mental and physical health of young people.The children's media advocacy organization Common Sense Media expressed support for the bill, calling it the strictest children's AI safety law in the United States. The tech industry has strongly pushed back, criticizing the overly broad definitions of the provisions and emphasizing that minors should not be deprived of access to cutting-edge learning tools. As of now, companies such as OpenAI and Anthropic have not publicly responded to this.
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