Coinbase Becomes First-Ever Crypto Firm Added to S&P 500 Index

By: bitcoin ethereum news|2025/05/14 11:30:04
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Coinbase stock jumped 8% after S&P 500 inclusion, despite the overall year trend still being negative. $2.9 billion Deribit buyout makes waves, largest crypto M&A yet, tightening Coinbase market grip. Coinbase Global has become the first cryptocurrency business to be added to the S&P 500 Index. The move begins before Monday’s opening on May 19, with Discover Financial stepping down from the list, which is being taken over by Capital One. According to the listing, Coinbase will stay listed with the ticker ‘COIN’, expanding the firm’s public listing. Coinbase stock price grew shortly after the announcement. Nasdaq data indicate an 8% rise in the stock price following the news. The COIN stock has risen more than 17% in the last month to stand at around $224. Despite this, the year-to-date is down over 16%, indicating a mixed trend in the sentiment of investors. The addition to the widely tracked index was announced in a press release issued by S&P Dow Jones Indices. This is part of a wider strategy pursued by Capital One in acquiring Discover Financial, making room for Coinbase in the index. Since institutional capital tracks the S&P 500 so closely, the move introduces Coinbase to the large-scale investor group for the first time. Coinbase Expands with $2.9 Billion Acquisition Coinbase’s momentum is not just about stock performance or additions to the index. Just days before the S&P 500 news, the firm announced a $2.9 billion deal to buy Deribit, a crypto options platform. This is the biggest-ever merger and acquisition in the crypto space. The magnitude of the transaction points to the firm’s desire to consolidate and spread its reach across various segments of the market. Coinbase Chief Operating Officer Emilie Choi highlighted the milestone’s importance, noting that the S&P 500 is among the most widely followed indexes in the world and a significant magnet for institutional capital. She has characterized the development as a “big deal” for customers, employees, investors, and the firm itself . Industry voices have also chimed in on the addition of Coinbase to the S&P 500. Strategy founder and Bitcoin champion Michael Saylor praised both the exchange and CEO Brian Armstrong for the moment, saying that it is a big win for both the exchange and for the wider adoption of Bitcoin. Public Reactions and Optimism from Leadership After the official announcement, Coinbase acknowledged the support it received through a message on its X account: Thank you to everyone who made it possible for a crypto company to join the S&P 500 for the first time in history. Brian Armstrong also opined in an X post, highlighting the significance of the achievement. He mentioned that this makes Coinbase the first and sole crypto business to join the S&P 500. Armstrong noted that the achievement is a testament to what true believers—retail buyers, institutional investors, employees, and partners—have long believed: crypto is not going anywhere. Coinbase just became the first and only crypto company to join the S&P 500. This milestone represents what the true believers, from retail investors to institutional investors to our employees and partners, knew all along. Crypto is here to stay. https://t.co/MnMRCX8pMg — Brian Armstrong (@brian_armstrong) May 12, 2025 Bitwise Chief Investment Officer Matt Hougan contributed to the excitement, speculating the firm may be paving the way for achieving a trillion-dollar valuation at some point in the future based on the recent activity and increasing presence. Source: https://www.crypto-news-flash.com/coinbase-first-crypto-firm-sp-500-index/?utm_source=rss&utm_medium=rss&utm_campaign=coinbase-first-crypto-firm-sp-500-index

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Before using Musk's "Western WeChat" X Chat, you need to understand these three questions

The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.


There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."


Question One: Is this encryption the same as Signal's encryption?


No. The difference lies in where the keys are stored.


In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.


X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.


This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.


The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.


The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.


After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."


From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.


In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.



As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."


Issue 2: Does Grok know what you're messaging in private?


Not continuous monitoring, but a clear access point.


For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.


This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.


There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."


Issue 3: Why is there no Android version?


X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.


In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.



WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.


X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.


These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.


Elon Musk's "Super App"


This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.



X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.


Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.


The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.


X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.


The help page sentence has never been just technical instructions.


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