So how do we know that some whale or whales weren't planning on buying 50K coins or more on the open market and instead are buying them at auction? In other words, How do we know that this sale isn't already priced into the market? It's not like this auction is a surprise or anything.
Cherish this day: Coinbase will announce to openly buy Bitcoins with the VC money.
They don't have to do that nor should they. It doesn't mean they won't do that as that reckless "moon" stunt proved, but hopefully they can be more subtle. All they need to do is keep the btc they earn as fees in a reserve account and use the VC money to meet operating expenses. The effect is the same as buying bitcoins. (because they are not selling coins they otherwise would sell.)
Operating expenses is not the same thing as paying out merchants who want cash.
of course it isn't the same. Who is saying it is? Who is saying they have any plans to cash out vendors with VC money?
I think there is a strong possibility. It's the obvious thing to do. Can even be part of their "business model"...
They need to spend that money getting licensed in the states they don't operate in yet.
