Sotheby’s Partners with Coinbase to Accept BTC & Ether for Banksy’s Iconic Painting: ‘Love Is In The Air’

Sotheby’s Partners with Coinbase to Accept BTC & Ether for Banksy’s Iconic Painting: ‘Love Is In The Air’

Sotheby’s CEO says they have been thinking about it for quite some time, and “What better combination to introduce crypto than an iconic Banksy painting.”

Auction house Sotheby’s has collaborated with Coinbase Commerce to accept cryptocurrencies for the iconic protest painting “Love is in the air” of famed artist Banksy. The catalog note from Banksy’s “Wall and Piece” reads,

“I like to think I have the guts to stand up anonymously in a Western democracy and call for things no-one else believes in – like peace and justice and freedom.”

This is yet another step in “bringing the utility of cryptocurrency mainstream,” said Coinbase on Tuesday.

Bitcoin (BTC) and Ethereum (ETH) will be accepted for the artwork that is to be auctioned on May 12th in New York, which currently has an estimated bidding price of $3 million to $5 million as mentioned on the website.

The auction will be conducted in USD, but the buyer and artist will have the option to transact in either crypto or fiat currencies. Coinbase will support the payment and help manage price fluctuations.

“It’s something we have been thinking about for quite some time,” said CEO Charles Stewart in an interview with CNBC. “What better combination to introduce crypto than an iconic Banksy painting.”

Last month, Sotheby’s accepted Ether for another artwork, but it was for an NFT created by anonymous digital artist Pak. Christie’s, another old auction house, has been involved in crypto through Beeple’s “Everydays: The First 5000 Days” and then CryptoPunks.

This latest crypto support, according to Sotheby’s Chief Technology Officer Stefan Pepe, will be “enhancing our client buying experience and developing new ways to expand our client base by meeting them where they are,” while according to Coinbase, it “will pave the way for further adoption of cryptocurrency across Sotheby’s auctions.”

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Author: AnTy

Nasdaq to Launch Coinbase’s COIN Options Trading Starting Today

Nasdaq to Launch Coinbase’s COIN Options Trading Starting Today

Options on Coinbase Global Inc would start trading on Nasdaq options exchanges starting today.

Less than a week after the largest cryptocurrency exchange in the US went public, the equity options on the stock will be launched. This would offer investors yet another way to bet on Coinbase.

On Wednesday, Coinbase made the high-profile debut that briefly valued it at over $100 billion. On the day, the COIN shares were worth as much as $430 at one point but are currently down 22.5% as it trades around $319.35.

image1

During the first day of trading, as we reported, Coinbase CEO Brian Armstrong sold about $292 million in shares in total, which is less than 2% of his entire holdings. Armstrong sold these shares in three batches of 749,999 each at prices ranging from $381 to $410.40 per share.

COIN has been very popular among the general public. It was actually the most bought across the retail clients of UBS for three consecutive days, as per John Street Capital. With a total 3-day inflow of $410 million, it was the largest 3-day period of inflows by a company only after Jack Ma’s Alibaba (BABA) initial public offering (IPO).

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Author: AnTy

Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood has rebalanced the company’s portfolio in favor of cryptocurrency stocks, yet again.

ARK funds bought 187,078 shares of Coinbase on Friday, adding to the 341,186 shares purchased on Thursday and 749,205 purchased on Wednesday. In total, Wood’s fund has 1,277,469 COIN shares worth almost $437 million at Friday’s closing price of $342.

The funds added to were the flagship ARK Innovation fund, the Next Generation Internet ETF, and the Fintech Innovation ETF.

Separately, it yet again sold 134,541 shares of electric car maker Tesla, valued at $99.5 million, from its flagship fund and Next Generation Internet ETF, but still, TSLA remains by far the firm’s biggest position by value on its major funds.

This big bet on Coinbase gives ARK more indirect exposure to cryptos on top of Tesla, which announced a $1.5 billion investment in Bitcoin this year and started accepting cryptos as payment for its cars.

Founded in 2014, Ark invests in companies involved with disrupting trends.

While up 6.6% from Thursday closing prices, COIN share prices it is still down 21% from its debut peak of almost $430, about 42% above the reference price of $250.

The uptrend in share prices came as the price of Bitcoin recovered after falling to $60,000, and Loop Capital Markets analyst Kenneth Hill advised clients to buy shares of the largest crypto exchange in the US. BTC -8.23% Bitcoin / USD BTCUSD $ 56,246.00
-$4,629.05-8.23%
Volume 97.65 b Change -$4,629.05 Open $56,246.00 Circulating 18.69 m Market Cap 1.05 t
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 10 h Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million 11 h BitMEX Co-Founder Arthur Hayes Puts Ether Moon Target Above $20,000

The latest analyst to call for buy highlighted “lots of runways” for the company ahead of a “takeoff.”

“Coinbase’s market valuation may seem excessive to some given the prospects of increased competition in digital wallets business, which should rapidly eat into Coinbase’s sweet profit margins,” Ipek Ozkardeskaya, senior analyst at Swissquote, told Bloomberg.

“On the other hand, the competition is not here yet, while large trading volumes continue boosting Coinbase’s revenues for the moment.”

Besides the funds, retail traders also jumped in on COIN. Day traders purchased a net $57 million of shares during the debut on the Nasdaq Stock Market, as per VandaTrack.

Retail accounted for 7% of the $822 million individuals spent on all US stocks and ETFs on the day, making Coinbase the fifth-most popular debut with day traders since 2017.

image1

Coinbase was also the most traded stock on Fidelity’s platform on the day, with over 148,000 shares changing hands, nearly 9x more than Tesla.

The exchange going public has been seen as a watershed moment for the crypto industry, taking it further into the mainstream.

Coinbase CEO Brian Armstrong called this direct listing a “shift in legitimacy” for the entire industry.

“Crypto has a shot at being a major force in the financial world.”

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Author: AnTy

One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory

Despite the volatility this week, due to Coinbase making its debut on Nasdaq, the Bitcoin price is holding strong above $62,000.

Amidst this, over $623 million worth of BTC stolen in the Bitfinex hack in 2016 moved, representing 10% of the total 119,756 BTC originally stolen. This could have been an attempt to move unseen amidst all the worldwide frenzy around “COIN” listing.

After hitting nearly $65,000 on Wednesday, BTC took a hit to $61,500, which in part could be due to stolen bitcoin moving and in part COIN shares ending up lowering 24%. But the market expects BTC to be back to a new ATH before taking over $70k.

While anything can happen in the market, we are far from topping out based on past performance.

As CoinGecko notes in its latest 2021 Q1 report on the cryptocurrency industry, the ascent of Bitcoin in this cycle (2020- 2022) is mimicking the trajectory it took in the last cycle (2016-2018).

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As we recently reported, despite rallying 1,610% from March lows, due to a wave of institutional adoption amid a conducive macro-environment, BTC is only 225% above its 2017 peak of $20,000. By comparison, the 2017 peak was 1,578% above 2013 ATH, and the 2013 peak was 3,590% higher than the 2011 ATH.

Interestingly, unlike last year and the previous cycle, this cycle we see very low volatility despite bitcoin becoming a trillion-dollar crypto asset, making its way to a six-figure price.

One reason why bitcoin might continue its trajectory, according to the report, is inflation. After spending trillions of dollars, another $1.9 trillion bill was passed this week that will again pour more money into the market.

Moreover, with the Federal Reserve determined to keep interest rates low, there is a growing fear of rising inflation, a setup that has made Bitcoin an increasingly viable hedge against the inflationary macro-environment stated Coingecko.

As we have seen, Bitcoin continues to outperform all major asset classes, but while the stock market is doing good, making new ATHs, gold, and bonds (TLT) did not amidst a “rally” in the U.S. Dollar index and rising bond yields.

Bitcoin’s market capitalization is actually just 10X away from flipping gold.

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When it comes to the rest of the market, Ether is finally moving up, hitting $2,400 this week. But with rising prices comes congestion and fee spikes, making it not conducive for retail users to do even a simple swap using DEXs. ETH 3.60% Ethereum / USD ETHUSD $ 2,523.06
$90.833.60%
Volume 32.2 b Change $90.83 Open $2,523.06 Circulating 115.48 m Market Cap 291.37 b
3 h European Banking Giant, Société Générale, Issues Security Token On Tezos Blockchain 3 h Gitcoin Spins Out of ConsenSys After Raising Over $11M in a ‘Strategic’ Capital Move 4 h Bitcoin Payment Network, BitPay, Joins Square-Led Crypto Open Patent Alliance (COPA)

With ‘Ethereum-Killers’ racing to offer the cheapest gas fees, this turned out to be good for Binance’s BSC. SOL 6.43% Solana / USD SOLUSD $ 27.85
$1.796.43%
Volume 221.45 m Change $1.79 Open $27.85 Circulating 270.02 m Market Cap 7.52 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Solana’s Data Aggregator Step Finance Raises $2 Million in Private Sale 3 d BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’
BNB 0.93% Binance Coin / USD BNBUSD $ 544.29
$5.060.93%
Volume 4.59 b Change $5.06 Open $544.29 Circulating 154.53 m Market Cap 84.11 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Ripple Executives File for Lawsuit Dismissal On Back of Last Week’s Victory; XRP Jumps On the News 1 d Binance Is Listing A Tokenized Stock of Coinbase, CZ says ‘Rooting for $COIN’
ADA 1.61% Cardano / USD ADAUSD $ 1.48
$0.021.61%
Volume 5.34 b Change $0.02 Open $1.48 Circulating 31.95 b Market Cap 47.39 b
6 h Cardano Releases Plutus Smart Contract Language in Preparation for Alonzo Hard Fork 6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 6 d Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users

“Total TVL is growing, but BSC’s TVL appears to be stealing Ethereum’s thunder – in Q1 2021 alone, BSC’s TVL rose from 3% to 27%. Apr-21 Ethereum is likely losing ground because of rising gas fees which drives away retail users,” noted the report.

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Author: AnTy

43 Million Retail Investors Now Gets Access to SUSHI, MATIC, & SKL on Coinbase Pro

43 Million Retail Investors Now Gets Access to SUSHI, MATIC, & SKL on Coinbase Pro

SKALE (SKL) reacted the most to the Coinbase Pro listing. The three crypto-assets will begin trading on March 11 and are not yet available in New York State and on Coinbase.com or its mobile apps.

Coinbase, the leading US cryptocurrency exchange, has listed popular DeFi token SUSHI along with MATIC and SKL.

SUSHI is the governance token of Sushiswap, the second-largest decentralized exchange (DEX), managing about $500 million in daily trading volume. The DeFi token is trading at $18.50, up 450% YTD.

MATIC powers the Polygon Network that aims to provide faster and cheaper transactions on Ethereum using Layer 2 sidechains. Trading at $0.321, the token has been having a spectacular 2021 with 1,720% gains this year so far.

The company disclosed that its investment arm, Coinbase Ventures invested in the project Matic in 2019 and owns MATIC tokens.

Unlike the other two tokens, SKALE reacted to the listing the most with a 93% increase in value, currently trading around $0.55. It is an Ethereum-compatible decentralized network designed to scale Web3 applications.

All three crypto-assets are listed against USD, BTC, EUR, and GBP, with SUSHI having an additional pairing with ETH as well.

Now, US users will be able to get access to these DeFi tokens, which, as Coinbase revealed in its SEC filing, are 43 million. Also, institutions will be joining in as they now account for 64% of Coinbase’s volume by customer segment as of Q4 2020.

These cryptos will be available in all of the exchange’s supported jurisdictions except for New York State. For now, they are not yet available on Coinbase.com or through its mobile apps either.

While the transfers on Coinbase Pro accounts are now opened, trading will begin on March 11.

These listings are just one of the many DeFi tokens that the exchange has been exploring for listing. Several major DeFi tokens, including AAVE, Bancor (BNT), Synthetic (SNX), YFI, Uniswap (UNI), Maker (MKR), are already on Coinbase.

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Author: AnTy

Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry

Coinbase going public will be making some people very rich as institutions start to dominate exchange’s volumes, while CT was disappointed in the money-making crypto company having surprisingly small amounts of digital currencies in their treasury balance sheet.

Coinbase Global Inc. has filed with the US SEC for a direct listing on Nasdaq, and it has the crypto market excited, and the traditional markets are taking notice, as the financial statements of the company revealed that the exchange has been making a lot of money.

Interestingly, a good majority, 85% of the 130 companies that went public in the US last year, was unprofitable. But with Coinbase, the matter is altogether different.

San Francisco-based reported revenue of $1.28 billion in 2020 versus $533.7 million in 2019.

Given the record trading volume, the number of new users, as well as the crypto trading platforms it has been acquiring in just the two months of 2021 amidst the wild bull run, the revenue in the first quarter will be off the charts and is expected to surpass $2 billion, for the exchange.

This puts Coinbase with over a $100 billion valuation, more valuable than CME, ICE which owns the NYSE, CBOE, and Nasdaq.

ErikVoorheesCoinbase

Source: Twitter

This will certainly be making Coinbase CEO Brian Armstrong, and its top executives, rich by billions of dollars as a result of this valuation, which would make it one of the biggest companies to go public since the social media giant Facebook.

The CEO owns 21.8% of the company’s voting power, followed by a16z’s Marc Andreessen at 14.2%, who owns twice as many shares as Armstrong, and co-founder Fred Ehsram 9%. In total, the 11-member board has the majority voting control.

coinbase-shares

Source: SEC Filing

To be listed under the ticker COIN, Goldman Sachs, JPMorgan, and Citigroup are the market makers who are also the advisors on the transaction with another addition Allen & Co.

One of the largest exchanges, Coinbase, reported 43 million verified users, steady growth from 23 million in Q1 of 2018. As for the transacting users, in Q4 of 2020, it was 2.8 million, nearly the same as 1Q18 at 2.7 million.

Unlike the transacting users, in 1Q18, when the market topped, Coinbase recorded $56 billion in trading volume, but during the last quarter, it was $89 billion.

The big difference has been in Coinbase’s volume by customer segment, as back in Q1 of 2018, retail dominated the exchange with more than an 80% share; it has completely changed to institutional accounting for 64% of volume in 4Q20.

Exciting & Embarrassing

Crypto Twitter (CT) has been excited about this development as Matt Huang, Co-founder at Paradigm, previously a partner at Sequoia, congratulated the company, “The Coinbase S-1 is just one step along the way toward building a legendary company… but still, one hell of a milestone.”

“This represents another major milestone in the development of the cryptocurrency industry,” tweeted Jay Hao, CEO of crypto exchange OKEx. “Coinbase’s S-1 filing will undoubtedly have a profound impact on the crypto market and usher in a new era of mainstream crypto adoption,” he added.

RobertLeshnerCoinbase

Source: Twitter

What really set off the CT was the fact that Coinbase, which started in 2012 when the price of BItcoin was about $5, holds only $130 million worth of BTC.

Square’s recently announced the purchase of $170 million worth BTC is more than this, and Coinbase’s BTC stash is nowhere even near Michael Saylor’s $2.171 billion bet on Bitcoin.

Besides having 55% of their modest crypto treasury, separate from cash and cash equivalents at $1.1 billion, the company has $24 million (10%) in Ethereum ETH -5.02% Ethereum / USD ETHUSD $ 1,446.93
-$72.64-5.02%
Volume 31.49 b Change -$72.64 Open $1,446.93 Circulating 114.84 m Market Cap 166.16 b
6 h Crypto Hedge Fund Arca is the Latest to Join the Crowd of Bitcoin Trust Issuers 6 h Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry 7 h 1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins
, $49 million (20%) in USDC stablecoin USDC -0.02% USD Coin / USD USDCUSD $ 1.00
$0.00-0.02%
Volume 2.46 b Change $0.00 Open $1.00 Circulating 8.59 b Market Cap 8.59 b
6 h Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry 1 w Private Aviation Company Sees 20% Revenue Coming from Bitcoin Paying Users 1 w You Can Now Buy Bitcoin with Apple Pay as BitPay Adds Support
, and $34 million (15%) in other altcoins.

Given that Coinbase is a cryptocurrency-centered company, some even called this crypto stash “embarrassing.”

But many expect Amrstong, Ehsram, and other early backers to own heavy Bitcoin BTC -4.15% Bitcoin / USD BTCUSD $ 46,344.77
-$1,923.31-4.15%
Volume 351 b Change -$1,923.31 Open $46,344.77 Circulating 18.64 m Market Cap 863.85 b
5 h A “BIG Deal:” Stone Ridge Files to Add Bitcoin to its Diversified Alternatives Fund 6 h Crypto Hedge Fund Arca is the Latest to Join the Crowd of Bitcoin Trust Issuers 6 h Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry
and crypto bags personally.

Coinbase going public, meanwhile, is also expected to be bullish for other exchanges and their tokens. “I think the bigger the Coinbase IPO gets, the better for exchange tokens. Doesn’t matter that owning an exchange token ≠ actually owning stock. Just matters that a lot of people will feel priced out of coinbase” noted trader DonAlt.

As we reported, US-based Kraken is also planning to raise funds that could more than double its valuation and surpass $20 billion.

Interestingly, in its filing with the SEC, Coinbase also mentions that they do not maintain a headquarter as of May 2020 and that they have become a remote-first company.

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Author: AnTy

Elon Musk’s Tesla Used Coinbase OTC Desk to Broker the $1.5 Billion Bitcoin Purchase

Elon Musk’s Tesla Used Coinbase OTC Desk to Broker the $1.5 Billion Bitcoin Purchase

Over the past year, institutional demand has been a blessing to the crypto industry. With more public firms showing interest in digital assets, the market has swollen in size.

However, what many institutions seem to have in common is their port of entry into the crypto market – Coinbase.

Coinbase Wins Another Institutional Client

Coinbase had been behind Tesla’s purchase of $1.5 billion in Bitcoin, which the auto manufacturer announced last week, The‌ ‌Block‌ ‌‌reports. Citing sources familiar with the exchange, the news source confirmed that Coinbase had begun the purchasing spree through its over-the-counter (OTC) trading desk in early February.

The source added to The Block that Coinbase’s brokerage service now counts over five Fortune 500 companies as clients. With the exchange looking to go public later this year, its clientele definitely gives it additional credibility to seek a solid offering.

Did MicroStrategy Have a Hand?

Coinbase has been doing some significant work when it comes to helping institutions improve their exposure to cryptocurrencies. Last year, Coinbase was reported to have facilitated British asset management firm Ruffer Investments with their $750 million Bitcoin purchase, marking the latter’s focus on alternative investments as it looked to hedge against devaluation.

Jonathan Adkins, a company representative, said Ruffer had made the purchase through One River Digital, an offshoot of top volatility hedge fund One River Asset Management. One River eventually contacted Coinbase, which brokered the investment over several days.

The San Francisco-based exchange has also confirmed that it helped business intelligence firm MicroStrategy with its Bitcoin investment. MicroStrategy began purchasing Bitcoin last July, committing $425 million in less than a month. Pumping its brokerage and custody service, Coinbase confirmed in an October blog post that it had indeed been the facilitator of MicroStrategy’s purchase.

MicroStrategy has been on a tear since, raising $650 million in December to facilitate a Bitcoin purchase and buying $10 million more of the asset last month, and raising $1 billion more to buy. It is unclear whether the company went through Coinbase since then.

The move from Tesla isn’t so surprising. Last year, Michael Saylor, MicroStrategy’s chief executive, had offered to “share his playbook” with Tesla CEO Elon Musk when the latter showed openness to purchasing Bitcoin. While any communication between the two, eventually leading to last week’s purchase, seemed to have happened privately.

Coinbase Wants To Go Public

Coinbase is considered one of the most successful crypto exchanges in the world. With five Fortune 500 companies on its list of clientele, the company is also looking to go public later this year. The famous crypto exchange has $90 billion worth of assets in cryptocurrencies alone.

The crypto exchange seems to attract some of the most famous institutional investors looking to make huge crypto bets.

As part of its enormous stake in the crypto industry, the crypto unicorn had $20 billion worth of cryptocurrency assets in custody for its clients as of November 2020.

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Author: Jimmy Aki

Crypto Mining Service, Titan, Receives Investment Funds From Coinbase Ventures

Crypto Mining Service, Titan, Receives Investment Funds From Coinbase Ventures

The developer of Bitcoin mining software and services Titan has announced a strategic investment fund from Coinbase Ventures. The investment fund was made during Titan’s seed fundraising round.

The investment will allow Titan to expand its offerings, which enable Bitcoin mining firms to achieve growth, profitability, efficiency, and sustenance.

Titan’s Expansion Goals Continue

Titan has been very active in the market lately. Last month, the company announced a partnership with North American mining leaders CoreScientific and CoinMint. The partnership is part of the agreement to become members of the Titan Pool. It is designed to help miners in the cryptocurrency industry meet opportunities and deal with challenges that may come in the future.

The Titan Pool is currently undergoing a high-volume test, as the firm is planning to launch its closed beta this month. Co-founder and chief executive officer of Titan Ryan Condron have commented on the development.

“The investment from Coinbase Ventures serves as a powerful endorsement of the Titan team, roadmap and vision,”

He added that the mining industry had advanced a lot, as it started from being a hobby to becoming an industry. Now, it’s a critical global computing infrastructure. Condron also reiterated that Titan is now equipped to help top miners in the world to overcome their challenges.

Titan says it makes mining less complicated, scalable, and profitable using its advanced mining management software. The company was launched in September 2018 by Matthew Roszak, Jeff Garzik, and Ryan Condron.

Coinbase Prepares for IPO

In another development, Coinbase is certainly one of the most popular cryptocurrency exchanges in the U.S, as the cryptocurrency exchange is highly profitable. However, despite its popularity, the company isn’t a publicly listed exchange and doesn’t make its financial figures available to the public.

This may come as a surprise to many, considering the popularity of the exchange. This may change as the company is preparing for an IPO.

Most of the company’s profits are from trading fees from Bitcoin and other crypto assets. The company filed an S-1 form intending to launch an IPO with the U.S. Securities and Exchange Commission (SEC) on December 22.

The firm has been involved in several projects and partnerships. It has also invested in a lot of startups to expand its portfolio and encourage more cryptocurrency adoption.

The investment with crypto mining pool Titan is another strong indication of where the exchange’s goals lie. While it has invested in several projects, the firm also received funds from top investment firms like Andreessen Horowitz and Tiger Global Management.

With the firm’s massive growth, many investors would want to participate in its upcoming IPO, which may likely be the biggest in 2021 as Bakkt and Gemini prepare for IPO’s as well.

This is not the first mining investment of Coinbase. In 2018, the exchange also invested in mining hardware startup Coinmine.

The Titan investment will help the crypto mining pool complete its beta testing phase, which is expected to end in February. Mining giant Core Scientific is among the clients currently testing the pool.

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Author: Ali Raza

Nexus Mutual Now Covers Binance, Coinbase, Gemini & Kraken Users Against Security Breaches

Nexus Mutual’s Insurance Now Covers Binance, Coinbase, Gemini & Kraken Users Against Security Breaches

Decentralized finance insurance protocol Nexus Mutual has updated the list of cryptocurrency exchanges that are eligible for incidence protection. The company’s services will now include customers of centralized exchanges like Coinbase, Binance, Gemini, and Kraken.

More Custodians Welcome

The update, which was announced on Monday, will allow these exchanges’ customers to purchase protection against certain hacks or asset withdrawal issues.

It’s part of the Custody Cover initiative, and it provides compensation for users who lose over ten percent of their funds in the event of a security breach on any of the supported exchanges. Users can also claim cover if an exchange suspends withdrawals for over 90 days.

Nexus Mutual launched Custody Cover in December 2020 to provide insurance cover for centralized crypto. At the time, the company explained that it was branching out of DeFi to build its insurance marketplace. The company’s long term goal is to use blockchain to provide cover for companies and individuals within and outside the crypto space.

“We’re focused on the longevity of Nexus Mutual and want to become a marketplace that covers diverse risks both in and outside of the crypto space. We want to use the benefits of blockchain to protect all underserved communities and this is our first step in that direction.”

Custody Cover launched with support for six custodians – Celsius, BlockFi, Hodlnaut, Nexo, inLock, and Ledn.

With Custody Cover, Nexus Mutual is looking to solve the issue of overly high insurance coverage prices in the crypto space. While premiums for insurance vary based on the platform, numbers appear to be too high for everyday customers and traders.

A Spotlight on Custody

Nexus Mutual’s branching out into the centralized space is coming amid significant growth in the crypto custody space. In response to increased institutional crypto demand, custody providers have also done their bit to improve security.

Recently, Bank of America-Merrill Lynch conducted a survey showing increased Bitcoin activity from Wall Street players. The survey interviewed fund managers with $534 billion in assets under management. They found that institutions were increasingly trading in Bitcoin. Only the dollar and tech stocks saw more trades.

report from Fidelity Investments also revealed that a third of institutional investors now own crypto assets. This increased enthusiasm from investors means asset custodians need to ramp up their security infrastructure to protect against hacks and other mishaps. In a report, auditing giant KPMG explained that custodians’ top action will be to enable next-generation compliance and security measures.

The company recommends incorporating leading cryptographic techniques like sharding, multi-signature wallets, and multi-party computation. Essentially, cryptocurrency security will require input from both hardware and software solutions.

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Author: Jimmy Aki

Tax Automation Startup TaxBit Secures Investment from Paypal, Coinbase, and Winklevoss Capital

Crypto Tax Automation Startup TaxBit Secures Investment from Paypal, Coinbase, and Winklevoss Capital

According to an announcement on Thursday, Paypal, Coinbase, and Winklevoss Capital have invested in crypto tax automation startup TaxBit. The tax compliance startup seems to gain traction from prominent players in the crypto industry. More tax authorities led by the likes of IRS tighten their oversight on cryptocurrency activity.

Winklevoss Capital was already an investor in TaxBit, having participated in their seed round, which raised $5 million. TaxBit is yet to disclose how much it was funded in the latest round of investment by the three industry giants.

As the IRS forges a clear path for crypto tax reporting, stakeholders have made adjustments to meet the set requirements. Per the latest Form 1040 draft, the IRS requires anyone who took part in crypto activity within 2020 to report the same. It outlines that the scope of such activities includes virtual currencies that have been airdropped or transferred for free and obviously transactions involving crypto assets.

“If, in 2020, you engaged in any transaction involving virtual currency, check the ‘Yes’ box next to the question on the virtual currency on page 1 of Form 1040 or 1040-SR.”

Given such developments, the TaxBit crypto tax automation software is among the solutions that firms and retail are looking for to remain tax compliant. This Salt Lake City startup reduces the workload of reporting taxes through two primary applications focused on exchanges, crypto businesses, and consumers. It is not surprising that they have now increased their capital base with support from major contributors to the crypto ecosystem.

Paypal, which recently debuted into the crypto space, is likely to benefit from this investment. More users will be willing to engage crypto assets once the hustle of tax reporting is eliminated. TaxBit Founder and CEO Austin Woodward expressed optimism on the milestone,

“We want to thank our customers, partners, and investors for helping us move the cryptocurrency space forward … This investment will help us achieve our aim of being the most innovative and trustworthy provider of cryptocurrency tax technology.”

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Author: Edwin Munyui