Billion-Dollar Hedge Fund, Third Point, CEO Is Doing A “Deep Dive Into Crypto”

Billion-Dollar Hedge Fund, Third Point, CEO Is Doing A “Deep Dive Into Crypto”

Daniel S. Loeb, the chief executive officer of the billion-dollar hedge fund, Third Point, is taking a special interest in cryptocurrencies which he shared with the world over Twitter Monday.

Loeb shared this detail in response to venture capital firm a16z partner Chris Dixon’s piece on NFTs. He said,

“I’ve been doing a deep dive into crypto lately. It is a real test of being intellectually open to new and controversial ideas. Culturally I compare bridging the crypto world with the old as akin to finding a portal between two distinct worlds in the multiverse.”

Given that the hedge fund manager is an avid art enthusiast, it makes sense that the NFTs have captured his interest. He also enjoyed Dixon’s “article as an art collector and investor.”

Talking about his latest interest in the cryptocurrency market, which recently surpassed $1.5 trillion in total market cap, he said it is important to understand it while keeping a healthy skepticism about it. Loeb said,

“Maintaining healthy skepticism while also deepening one’s understanding requires one to engage in what Steve Jobs (and Fitzgerald before him) described as requisite for a superior intellect: “to maintain two opposed ideas in one’s mind and retain the ability to function.”

During his Twitter thread, Daniel Loeb also talked about that being late to the crypto party doesn’t mean that you would be suffering the losses. During the ongoing bull cycle, Bitcoin has hit a new peak at $58,300, and after last week’s losses, BTC is back to surging today, nearing $50k.

Since last year, Bitcoin and cryptocurrencies have gained mainstream recognition, with traditional investors and major companies jumping on the crypto bandwagon. The real estate investor and stock and bond analyst said,

“Another conflict to overcome is the idea that being late to the crypto party will inevitably lead to one taking the sucker seat at a high stakes poker table versus this still being early days in what is just now being adopted in the mainstream.”

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Author: AnTy

Bull Rally Restarting: DeFi Blue Chips Giddy with Massive Uptrend

Ever since this past weekend, when Bitcoin took a dive to about $14,500, the leading cryptocurrency has taken to relax around $15,000.

With Bitcoin calming down, altcoins are the ones popping. Ethereum is keeping above $445, and although top altcoins are in the green, they are not the ones leading the market.

2020 has been all about Decentralized Finance, and this time it is no different. As a matter of fact, after enjoying a rally in August and topping out in September, recording severe losses, looks like DeFi coins are back for another round.

While the likes of Maker, Loopring, HOT, Sushi, Melon Protocol, Terra, UMA, Wrapped nexus, Bancor, and Compound are up less than 5%, they made record gains in the past week, albeit of mediocre levels.

CoTrader, Balancer, Mainframe, Curve, Augur, bZx Network, and 0x are popping up nicely today, all up over 10%. This DeFi rally, however, is all about the blue chips.

But not all Blue chips are equal, and it is Aave, which is in the lead.

Currently trading at $63, Aave is up a whopping over 140% in just the last five days. It is basically a paradise for scalpers — short-term traders that execute dozens, in some cases hundreds of times, trades per day.

These gains also have heavy negative funding on Aave futures, which means shorts are paying the longs to keep the price of the perpetual swap contracts in line with the underlying asset.

These gains came soon after Aave made the transition from its LEND token to Aavenomics. Before the rebranding as LEND, Aave was pumping hard, and afterward, as AAVE, it is pumping just as hard. Quant trader Qiao Wang said,

“Aave’s token migration and ticker change from LEND to AAVE is the one of the most ingenious price discovery tactics in the history of DeFi.”

“Although the liquidity has deteriorated quite a bit. Doesn’t take a lot of money to move the market by 10%.”

Aave is currently the 5th largest project in the DeFi sector as per its $1.18 billion of total value locked in it, down from $1.67 billion on August 30, as per DeFi Pulse. Overall, the TVL has reached a new record of $12.75 billion.

“YFI & Aave volatility is a distraction to nuke your potential gains from riding out the trend instead of scalping,” noted trader Hsaka.

YFI is another project which is popping hard, about 90% this past week while trading around $17,800. Recently, YearnFinance joined hands with Hegic to introduce Options.

A very similar action can be seen in SNX, pushing for $5. This DeFi token has jumped 20% today and 85% in the last 7 days.

“The bull market is restarting,” said Wang, adding, “Largely depends on BTC/ETH of course. But I’m long, and a buyer of dips.”

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Author: AnTy

MicroStrategy CEO: Bitcoin is the “Ultimate Inflation Hedge,” 1000x Better than Gold

Publicly traded MicroStrategy has taken a deep dive into Bitcoin, having bought a total of 38,250 BTC at a rate of $425 million and making the leading digital asset a part of their reserve, replacing cash.

This is a big conversion from MicroStrategy CEO Michael Saylor’s tweet about “bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling,” in 2013.

However, in a conversation with Anthony Pompliano on his podcast, Saylor shared that he is “ashamed” for tweeting what he did, which he didn’t even realize until the crypto community reminded him of when the company first announced buying $250 million worth of bitcoin. He said,

“I’m like oh my god, I literally forgot I ever said that…but I took it as kind of like, kind ribbing like I didn’t get all worked up about. I’m like you’re right, I was wrong, what an idiot I was.”

Because They’re Going to Crush Everything

During his conversation, Saylor further talked about how before agreeing on bitcoin is the right idea, “we all needed to collectively be of the opinion that we were going to be generating cash at infinitum,” for which they went on a journey through corporately over the past year.

The company had $500 million in cash, and they had to decide whether to buy-back stock, buy another company, or keep it for a rainy day.

Saylor credited his friend Eric Rice, who owns bitcoin investment fund and kept on advising him on bitcoin, which the CEO kept on dismissing until “one day we’re sitting around my pool in Miami and he starts explaining it and something clicks in my head that maybe this is a pretty good idea.”

So, here they had to decide between precious metal and bitcoin after dismissing commercial real estate and equities and “I want something that can go up by a factor of 10,” Saylor said.

He compared Bitcoin to Amazon and Apple when they first came out — a good investment that has a digital dominant network and dematerialized something fundamental. So, you invest in that thing when they have a hundred billion dollar market cap because,

“When they’re ten times bigger than the next biggest thing, and they’re a hundred billion dollars, they’re probably going to crush everything.”

This is the Real Deal

Saylor, however, isn’t interested in hundreds of other cryptos available in the crypto space. Because, while it’s “great” to have all that innovation which may or may not work, an outsider needs something in which one can put in their $500 million and,

“Everybody in the community is going to spend every iota of their energy to make sure no one f’s with that network.”

Not to mention, bitcoin is the dominant crypto, and nothing comes close to it. Also, community ethos is one of the key drivers of their belief in its success.

And although BTC is volatile, what other choice does anyone have in the current environment.

“Let’s be honest there’s a negative real yield on everything else,” whether it’s gold, bond, or cash.

“Every other non-volatile asset is a negative real yield, which means that everything else is lifeblood draining out of my veins,” said Saylor, adding he would choose the asset with volatility over “non-volatile cash that bought 30 percent less in a matter of eight weeks.”

Moreover, in the next ten years, with people coming into move hundreds of millions of dollars, they will tend to damp all the volatility because it’s in their interest.

“I think people were kind of oblivious to the need to slash the role of bitcoin and the bitcoin narrative of digital gold – this is the ultimate inflation hedge,” said Saylor, who sees the digital asset as a 1000x better than the yellow metal.

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Author: AnTy

Billion Dollar Publicly-traded MicroStrategy Buys 21,454 Bitcoin as a Reserve Asset

MicroStrategy is now taking a deep dive into the world of bitcoin.

The $1.2 billion Nasdaq listed software company has officially announced its position in the largest digital asset. A fortnight after announcing to invest in bitcoin as an inflation hedge, the company has purchased 21,454 BTC at an aggregate price of $250 million, inclusive of fees and expenses.

As we reported, in its earnings call on July 28, 2020, the company shared its bitcoin investment plans as part of its two-pronged capital allocation strategy to “maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated.

According to Saylor, it is their investment belief that bitcoin is a “dependable store of value and an attractive investment asset,” that has more long-term price appreciation potential than holding cash. He said,

“Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions.”

The company recognizes the digital asset as “a legitimate investment asset that can be superior to cash” as such giving it a principal holding in its treasury reserve program.

It has been after months of deliberation that the company decided to allocate its capital into bitcoin, revealed the company. The decision was in part driven by macro factors that are creating long-term risks for their investments.

Economic and public health crisis, unprecedented government financial stimulus measures including QE around the world, and global political and economic uncertainty are the factors listed by the company that have a “significant depreciating effect on the long-term real value of fiat currencies and many other conventional asset types.”

And bitcoin provides “not only a “reasonable hedge against inflation but also the prospect of earning a higher return than other investments,” said Saylor.

According to the company, the world’s leading digital asset is a digital gold that is stronger, smarter, harder, and faster than “any money that has preceded it.” The CEO said,

“We find the global acceptance, brand recognition, ecosystem vitality, network dominance, architectural resilience, technical utility, and community ethos of Bitcoin to be persuasive evidence of its superiority as an asset class for those seeking a long-term store of value.”

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Author: AnTy

HTC’s EXODUS 1S Launches Monero (XMR) Mining Directly on Blockchain Smart Phone

HTC, the Taiwan based smartphone manufacturer is all set to dive deeper into the decentralized space with its Monero mining smartphones. The smartphone brand made several headlines in the past year with its blockchain-focused Exodus range of smartphones which not only had inbuilt crypto wallets, but many devices also had the capability to run a full Bitcoin node.

HTC has teamed up with Midas labs to enable the Monero mining feature on Exodus range of blockchain smartphones, which would allow device owners to mine Monero via an application right from their pockets. The feature is being speculated to launch in the next two months. In order to avail the mining service, HTC would integrate Midas’s DeMiner app into the Exodus devices using which the smartphone owners can allocate a portion of their smartphone’s CPU and memory towards mining.

Monero, a privacy centered cryptocurrency which has gained traction among many who believe the government should not dictate how one is using their own money. The Monero mining pools’ rewards are $60 million, and with the introduction of Monero mining in HTC devices, the users can take a portion of this reward without having to invest in highly expensive mining rigs.

Is Mining on Mobile Devices Profitable

The mining industry has become highly competitive and as a result, the mining rigs have also moved into the third generation, starting from simple home-based CPU, then GPU based mining rigs and the latest trend being ASIC mining rigs which are highly efficient. Thus, there is a genuine question that arises whether in this age of ASIC mining rigs costing thousands of dollars, how mobile-based mining is going to fare against them.

Phil Chen, Decentralized Chief Officer at HTC acknowledged that the success of mobile mining is a topic of research, but given how readily these mobile devices are available to a majority of the world numbering into 3.5 billion devices worldwide, mobile-based mining should be encouraged to make the mining industry more decentralized.

Talking about the Exodus range of devices, Chen noted that these devices come equipped with RandomX mining script which is designed to render ASICs non-competitive. The mining script in these devices favors CPU miners over the GPU ones. Chen explained,

“Furthermore, the mature development of power-saving software on mobile, as opposed to power-hungry laptops or desktops, amplifies the effectiveness and efficiency of the profitability of mining on mobile,”

HTC Tapping into Blockchain Space

HTC was a big smartphone brand in the last decade, however, just like Blackberry it lost a significant portion of its market due to the arrival of Chinese smartphones which were comparatively way cheaper than them. But, in recent times, HTC has found a niche in the decentralized space with not just the Exodus smartphones, but it also launched an Exodus 5G router.

Now with the Monero mining application launch on the cards, the smartphone makers are looking to tap into the decentralized space and find a new niche.

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Author: Hank Klinger

Circle To Boost Adoption of USD Coin (USDC) With Business Accounts and API Services

As Circle looks to dive deeper into making its stablecoin (USDC) a household name, it is continuing to spin-off acquired projects that aren’t a core business. Next up on the chopping block is the crowdfunding platform SeedInvest that it bought back in October of 2018.

Circle has the intention to remain focused on the development of stablecoin products, announced Jeremy Allaire, Circle’s CEO and one of the firm’s co-founders. Included in this process, the company will roll out new Business Accounts and Circle APIs, that will allow developers to build on top of the USDC network.

Circle Has Many Revenue Streams

While Circle has many revenue streams, it’s still trying to grow its development and research wings, on which it has focused on ever since the summer of 2019, when it started to offer USDC products

Over the last year, Circle sold the crypto exchange Poloniex that it has bought in 2018, closed its payments app Circle Pay, also sold Circle Invest and Circle Trade to Voyager and respectively Kraken, not to mention is at the moment considering to sell SeedInvest too.

SeedInvest, No Longer at the Core of Circle’s Business

According to Allaire, SeedInvest is no longer at the core of the business conducted at Circle. The CEO’s said,

“We exited the exchange business … so the need for that set of licensing just doesn’t exist anymore. The second thing is this whole kind of tokenization, having regulated broker-dealers and tokenized securities, that’s been slow-rolled.”

Ever since January, the company has also reduced its number of employees from 300 to 125 as a result of its many departments being sold. Regarding this, Allaire had to say that:

“We had about 100 people who went with these different spinouts … [it was] a natural way for people to go with those businesses and product lines.”

What’s Next for Circle?

Speaking to Coindesk, Allaire said his company is planning to announce additional stablecoin products.

“We’ve been executing like crazy on USDC,” he said. “We’ve tokenized over $1.6 billion in USDC, crossed the $500 million market cap recently.”

These products will firstly include new business accounts that Circle is planning to offer to startups the new products for free and then transition to a usage-based subscription afterward.

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Author: Oana Ularu