Russian President says Cryptocurrency May Become A “Means of Savings” at Some Point

Russian President says Cryptocurrency May Become A “Means of Savings” at Some Point

Vladimir Putin also said cryptocurrencies can also be used as payment though it is still too early to say.

Russian President Vladimir Putin said on Thursday that cryptocurrency can become a settlement unit though it is very unstable and still too early to use for energy.

These positive comments for digital currencies were given by Putin in an interview with CNBC that was posted on the Kremlin’s website Thursday.

Cryptocurrency “has the right to exist and can be used as a means of payment,” said Putin. But he did say that it was too soon to use crypto assets for trading oil and other commodities that make up the bulk of Russia’s exports.

“It’s too early to talk about this issue. Of course, cryptocurrency can become a settlement unit, but it is very unstable. It is possible to transfer funds from one place to another. But I think it’s too early for transactions, especially energy transactions, to use cryptocurrency for settlement.”

Russia, on which the US has imposed sanctions since 2014, has sought alternatives to trading in USD and has accelerated the de-dollarization plans with gold and has also set up an alternative SWIFT System to connect with other countries.

As we reported, Deputy Finance Minister Alexei Moiseev said this week that the country has no plans to ban crypto in countries like China.

Meanwhile, the central bank, the Bank of Russia, continues to issue warnings to investors about the crypto market being volatile and digital currencies not allowed to be used as a method of payment domestically. Putin meanwhile emphasized that they will

“pay attention to the development trend of cryptocurrency, which may also become a means of savings at some point. We have seen how the market fluctuates, and it is still early.”

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Author: AnTy

US Dollar Hits One-Year High But Bitcoin No Longer Holds an Inverse Correlation with it

The crypto market is feeling some blues as the Bitcoin price gets back under $55,000.

The week started on a bullish note as Bitcoin went to nearly $58,000, recording a 32.5% uptrend in October. Late on Tuesday, the price dipped to $53,700 only to recover back above $56,600 in the next few hours.

“We believe the market is healthy, and these are, in fact, normal pullbacks that are to be expected,” said Philippe Bekhazi, CEO and co-founder of crypto trading platform XBTO.

“The market is seemingly pricing in the probability of an ETF approval this month. So profit-taking is natural.”

Bitcoin going red has the total market cap also sliding by 4% in the past 24-hours but still keeping well above $2.34 trillion.

Much like in the Q4 of 2020 when Bitcoin gradually made its way to 2017 all-time high of $20,000, after the lacking performance in the second half of Q2 and the Q3, the leading cryptocurrency is flirting with a run towards its ATH of nearly $65,000.

This, however, has been happening while the dollar is near its one-year high. The US dollar index dropped on Wednesday to 94.3 after making a new 2021 high at 94.56 just the day before, a level last seen in late September.

However, Bitcoin no longer holds an inverse correlation with the USD, according to Kaiko’s latest report.

image1

Historically, BTC has moved in the opposite direction to the US dollar, but this trend seems to have dissipated this year. Both the currencies have been experiencing an upward trajectory in contrast to traditional equities, which closed in September with their worst performance since the start of the pandemic.

“Bitcoin’s rising correlation with the DXY suggests that despite a growing risk-off environment, both fiat and crypto assets are treated similarly by investors,” wrote Kaiko.

The Bullish and the Bearish

Meanwhile, the crypto community has started to get bullish yet again, with many calling for new peaks for the trillion-dollar crypto asset in the historically bullish Q4.

While Vijay Ayyar, head of Asia Pacific with crypto exchange Luno sees a record high for Bitcoin at around $80k and $85k possible, others are seeing $100k getting breached this time.

Technically, Bitcoin’s run-up has activated an inverted head and shoulders chart pattern that can see the cryptocurrency climbing to $79k.

As we have reported for the past couple of days, the open interest for Bitcoin derivatives contracts has also been increasing rapidly, now sitting around $20 billion, the level last seen in mid-May. The funding rate has also started to increase, with the highest currently on Deribit at 0.0363%.

In the options market, open positions for the $80k strike call for December 2021 expiry now vastly surpass those for the $40k strike put, according to data from options exchange Deribit.

Not to mention, optimism that the first Bitcoin futures exchange-traded fund (ETF) may be approved by the SEC as soon as this month has traders and investors jumping back into Bitcoin.

That’s why this week’s decline is “not cause for concern,” according to James Butterfill, an investment strategist at CoinShares.

“It hasn’t broken trend and the fundamentals of increase chances of an SEC approval and increasing institutional adoption are likely to be supportive of price in the coming weeks.”

However, not everyone thinks the approval is coming. “The market is over-emphasizing (SEC Chairman) Gary Gensler’s public comments about support for the (CME) and futures,” said Jeff Dorman, CIO at digital asset management firm Arca.

“We believe the concerns the SEC has raised historically regarding market manipulation of bitcoin and unregulated exchanges have not been solved.”

Besides CME’s future basis rising fast, signaling a lot of buying, the Rothschild Investment Corp. disclosed an increase in their GBTC and ETHE holdings. It now owns 138,790 shares of GBTC and 303,554 ETHE, up from 141,405 GBTC and 13,817 ETHE shares, respectively.

However, the Crypto Fear and Greed Index is back to flashing “greed” at a reading of 70 when just last month it was 44 and in “fear” territory. Just yesterday, the index showed “extreme greed” in the market at a reading of 78, so market sentiments are fast-changing and led by price.

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Author: AnTy

No, Coinbase Has Not Relisted XRP

Late on Thursday, some cryptocurrency market participants got excited to see XRP on Coinbase, which was a surprise as earlier this year, on January 19, Coinbase “fully” suspended trading in XRP.

The San Francisco-based cryptocurrency exchange announced the delisting of XRP back in late December, just like the majority of the trading platforms in the country. The delisting came in the light of the Securities and Exchange Commission (SEC) charging Ripple and its two key executives, co-founder Chris Larsen and CEO Brad Garlinghouse, for the sale of $1.3 bln unregistered securities.

But on Sept. 9, some users found XRP markets on the exchange that gave way to speculation that Coinbase has relisted the crypto asset.

But then, a few hours later, Coinbase put an end to it all, saying it was a technical issue.

“As previously announced, Coinbase has suspended trading in XRP. Due to a technical issue, XRP was temporarily viewable on the Coinbase Pro mobile app for some customers but was not tradeable,” clarified the exchange on Twitter.

Still, this was enough to send the price of XRP soaring from $1.1 to $1.244 but only to drop back to $1.04 a few hours later. As of writing, XRP is trading at $1.10 with a market cap of $51 bln as the 7th largest crypto asset.

While some people were excited about their favorite crypto asset being back on the biggest cryptocurrency exchange in the US, others saw this “issue” as Coinbase striking at the SEC for hindering its plans to launch its new lending product.

As we reported earlier this week, Coinbase shared that they have received a Wells Notice from the SEC for its Coinbase Lend product that allows its users to earn interest on their crypto holdings, starting with 4% on USDC.

Interestingly, Ripple CEO Garlinghouse tweeted the Die Hard GIF with the text “Welcome to the party, Pal” to Armstrong’s tweet discussing the “really sketchy behavior” from the SEC.

The same day, Garlinghouse released a blog post on the Ripple website titled “The SEC’s Attack on Crypto in the United States.”

“With the latest SEC cryptocurrency regulation tightening its grip on greater investor protection on digital currency, we remain confident after reviewing the SEC’s complaint today that we are on the right side of the law and of history.”

“Nothing will fundamentally alter our trajectory.”

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Author: AnTy

Rep. Tedd Budd: Some Lawmakers Worry Crypto Could Cause ‘Financial 9/11’

Rep. Tedd Budd: Some Lawmakers Worry Crypto Could Cause ‘Financial 9/11’

US officials have been more concerned about cryptocurrencies, especially stablecoins, in recent weeks. According to an official of the US House of Representatives, Ted Budd, some legislators are now worried that cryptocurrencies could threaten national security.

Congressman Takes A Swipe At Fellow Lawmakers

Budd made these comments while speaking on the Maker Speaker Series, sponsored by a decentralized autonomous organization and issuer of DAI stablecoin, MakerDAO.

He said that the officials fear the future of the blockchain and decentralized finance and how it will evolve. According to him, the lawmakers think cryptocurrencies could lead to a financial equivalent of the September 11 attacks, also referred to as 9/11. Budd said to MakerDAO’s Chris Cameron,

“The fear is whether it will hurt our national sovereignty? Will it destabilize the dollar? Is it a threat to national security? You even have some in the House that sit not too far from me on the House Financial Services Committee that would call blockchain basically a financial 9/11.”

Budd, who serves on the Financial Services Committee, explained that he disagreed with such statements while stressing his desire to embrace blockchain through regulation.

He noted that lawmakers need to embrace decentralized innovation and address regulatory concerns with issuers of stablecoins.

The US Representative further said that the regulators need to make the country a place where innovation and technology would flourish.

Stablecoins, A Constant Regulatory Concern Among Lawmakers

Cryptocurrencies have garnered a lot of attention and made news headlines in recent months. US officials have expressed concerns while calling for swift regulation to be taken in the sector.

Earlier this month, US Treasury Secretary Janet Yellen called for greater regulatory oversight of the stablecoin sector during a July 19 meeting of the President’s Working Group on Financial Markets. According to CNBC, Yellen said there was a need for regulators to come together to mitigate the risks posed by stablecoins.

Yellen said this after Federal Reserve Chairman Jerome Powell affirmed that stablecoins would need an appropriate framework during a congressional hearing.

Other US officials that have positioned themselves as crypto-skeptical include Chairwoman of the Financial Services Committee, Maxine Waters (D-CA), and Rep. Rashida Tlaib (D-MA).

A recent Bloomberg report cited Acting Comptroller of the Currency, Michael Hsu, revealing that lawmakers are looking into the purported commercial paper reserves of the largest stablecoin by market cap, Tether (USDT).

Stablecoins can potentially allow users to circumvent money transmitter rules set by the US Treasury’s Financial Crimes Enforcement Network (FinCEN) and anti-money laundering regulations under the Bank Secrecy Act. This is according to a statement from the President’s Working Group on Financial Markets.

Going by Ted Budd’s recent conversation on how lawmakers see stablecoins, more crypto scrutiny might be on the horizon in the US.

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Author: Jimmy Aki

Long-Term Chart Clearly Shows Bitcoin Still in an ‘Uptrend’ But Biggest Macro Headwinds Looms Over Price

“BTC needs another major catalyst to regain momentum and combat some of the uglier charts in the near term,” said Kevin Kelly, co-founder and head of global macro at Delphi Digital, in his latest report.

In April, Bitcoin hit its all-time high at nearly $65,000, and last month, it had a drawdown of 54% to 57% as the price fell to $30,000 on Coinbase and $28,000 on some exchanges. Today, that price finally crossed the $40k mark on the news that legendary investor, Paul Tudor Jones, has upped his allocation of bitcoin to 5% of his portfolio. He originally said 2% back in May of 2020.

Slashing of Bitcoins’ value by half was driven by the major unwind in leveraged positions, profit-taking following one of BTC’s best runs, and of course, the narrative of crypto-mining not being good for the environment.

“When everyone is leveraged long, it’s not a matter of if but when a major correction will take place.”

Wiping out all the gains of 2021 has the cryptocurrency’s year-to-date gains now at just over 35%. In comparison, ETH is up 236%, WTI 45.71%, and S&P 500 13.08%. Both gold and dollar’s YTD gains are negative by 1.20% and 0.57%, respectively.

BTC-v-Major-Asset-Classes-YTD

Still, more than 85% of Bitcoin UTXOs are in profit — “price bottoms following historical drawdowns of similar magnitude tended to coincide with a drop in the % of profitable UTXOs to at least ~55%.”

The total supply of Bitcoin by long-term holders on a percentage basis which recently bottomed at 58.5%, is also now back above 61%, a good sign for the longer term.

For now, BTC has strong support at around $30k, but if it breaks down, the prices can very well dive below $20k.

Not to mention, the death cross is coming — BTC’s 50-day MA is on the verge of crossing below its 200-day equivalent for the first time since March 2020. As we reported, this leads to a bullish golden cross like many times in history, but this could also turn out like 2017 when it solidified the bear market, which would mean the bottom may not be in quite yet.

However, there’s more to Bitcoin price than just technical analysis.

As we saw recently, the sentiments towards cryptocurrency have turned sour, with the Crypto Fear & Greed Index falling to its lowest level since the March 2020 sell-off. On May 30, the reading was 10, which has now gone up to 28.

One of the biggest macro headwinds to BTC, according to Kelly, is the deceleration in the growth of central bank asset purchases.

BTC-Peaks-v-Central-Bank-Asset-Growth

Historically, the price tends to peak at roughly the same time as y/y growth in major central bank balance sheets, which hit $8 trillion for the first time last week.

With the trend of large-scale debt monetization and asset purchases likely to continue, it spells bullish for Bitcoin, but the talks of tighter monetary policy in the face of rising inflation could serve as a headwind for BTC in the near term.

Bitcoin and crypto actually rated to sell-off around the time inflation expectations actually peaked in mid-May. “It’s an important distinction because markets trade on changes in expectations, not backward-looking data prints,” said Kelly.

BTC-Long-Term-Uptrend

However, not only “the long-term chart clearly shows BTC still in an uptrend” despite the recent drawdown and compared to previous cycles, the price trajectory still looks to be right on track, so unless $20k is retested, Bitcoin can continue higher.

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Author: AnTy

BitMEX Co-Founder Arthur Hayes Puts Ether Moon Target Above $20,000

From calling Ether “a double-digit shitcoin” to wishing he had bought some in the pre-sale, Hayes has come a long way and is very bullish on the “most developed, decentralized smart contract network” and DeFi.

Arthur Hayes, the co-founder of crypto derivatives exchange BitMEX is big-time bullish on Ethereum, saying he wishes he had bought some ETH in the pre-sale when it was sold for about 30 cents in 2014.

This week, Ether hit a new all-time high at $2,500.

This is a big shift from calling Ether “a double-digit shitcoin,” which, in his favor, he admits to.

“One of the best writers in the space. Also the most successful market maker/manipulator,” commented trader and investor Tetranode, who is extremely bullish on Ethereum. “The double-digit shitcoin was just a phase. Soon all will understand the method in the madness,” he added.

Ethereum, Hayes goes on to say, though imitating Bitcoin like the majority of the projects does in the crypto space, it “offered a substantial improvement by creating a virtual decentralised computer that greatly expands the potential use cases for the technology underlying Bitcoin.” BTC -8.30% Bitcoin / USD BTCUSD $ 56,210.51
-$4,665.47-8.30%
Volume 97.47 b Change -$4,665.47 Open $56,210.51 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

Hayes’ views on Ether aren’t much different from the likes of Kyle Davies, co-founder of Three Arrows Capital, who revealed on the podcast “TechnicalRoundup” that their fund is “overweight Ethereum.”

With their focus on layer one, Davie believes Ethereum is “overlooked” as everyone is focusing on the success of some other layer ones. And while some DeFi projects are moving to other platforms like BSC, “layer two is real.” Though 3AC is invested in some layer two solutions as well, Ethereum is where “a lot of innovation is still happening,” he said.

The second-largest cryptocurrency network is the base of the decentralized finance (DeFi) sector, with $60 billion in total value locked (TVL).

The goal of the DeFi movement is to have “a peer-to-peer system that moves information from point to point without a centralized, trusted gate keeper,” Hayes said.

Broken Traditional Model

Haye’s focus in his latest write-up is to determine how much upside there is left in the market right now if some decentralized crypto can replace a portion of the need for blind trust in a centralized trust cartel.

He found this out by putting the failing traditional banking business model in the limelight. The banking index all over the world has been doing poorly despite all the help that they get from governments.

“Banks who privatize profits and socialize losses haven’t managed to enrich their shareholders,” he noted. But if these banks adopted the technological improvements, they would have seen the exponential growth the technology bellwethers are recording.

A decentralized service powered by a public blockchain can actually replicate and improve upon every product and service offered by a bank that too at a lower cost on a macro scale, Hayes wrote.

Traditional banks, he says, “are destined to be service companies for a subset of relatively wealthy global Boomers,” which still got billions of dollars of fee income in that business, but it’s not a growing slice of the market.

The public paid $2.68 trillion, 2% to 3% of world GDP, to these banking institutions. On top of this, we paid audit and accountancy services $87.09 billion, which Hayes said will go to zero because of blockchain.

Ethereum & DeFi is the Way

Ethereum, today, is the most developed, used, and decentralized smart contract network. No doubt others like BSC, Polkadot, and Solana are emerging but simply put, unlike Ethereum, no has proven themselves yet.

“No other public smart contract-enabled blockchain operates at the scale of Ethereum.”

Some might argue that the gas fees are astronomical, but as Hayes says, “it is a good problem to have,” after all, “nothing in life is free, and this is doubly true in the crypto capital markets.”

This fee that incurs on every action, along with the fees charged by dapps, can actually be seen as income to those keeping the network running, just like the tax we are paying banks to use their services.

Assuming Ethereum can capture some percentage of the 5-year average earnings of banks and the big four audit firms, Hayes comes up with extraordinary numbers.

image1

At 0.50%, the price of ETH implies a 10x price appreciation from current levels putting it above $20,000. Trader Teranode is of a similar opinion and sees Ether hitting $100k in the future.

“Eth went 80% down (400 to 80) after he called it a double-digit shitcoin. 20k, the conservative prediction in his blog post based on DeFi penetration of overall financial markets, would be an 8x from 2.5k. Both spooky and auspicious,” commented Zhu Su, CEO at Three Arrows Capital on this.

“I am very certain that DeFi can take away at least 0.50% of activity from CeFi,” wrote Hayes.

“When you take a high-level approximation that shows you will make money even when you are assuming the worst-case scenario, get long whatever the fuck you are valuing.”

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Author: AnTy

Bitcoin Breaks into a New ATH Above $60,000

Funding surged at one point to 0.5% but now coming down some while just over $1 billion in the past 24 hours with Binance’s degen users yet again leading.

Bitcoin entered the weekend with a very strong move as the leading crypto asset made a new all-time high just as the $1,400 stimulus checks to Americans have also started coming in.

The digital asset broke the Feb. 21st ATH of $58,350 and climbed to nearly $60,266 on Bitfinex, $60,200 on Binance, and $60k on Coinbase. A “significant negative” price gap between Coinbase and Binance shows this surge came from stablecoin buying power, per CryptoQuant.

The market is unaffected by the reports of CFTC probing Binance. As Matt Blom, global head of sales trading at EQUOS, said,

“The bears’ last stand is the $57,800 level, and it looks like we might be seeing that battle play out before the week is over,” and we did. On the downside, around $55k, he sees levels “supported by dip-buying bulls and dip-buying bears alike.”

This momentum saw the funding rate on futures platforms also rising fiercely. Bitcoin’s perpetual funding rate reacted to the bulls, and at one point, longs paid 0.5% to shorts on Deribit, as per Viewbase.

Liquidations were relatively small today as in the past four hours only about $360 million got rekt while 195,975 traders were liquidated for just over $1 billion in the past 24 hours.

And of course, much like always, Binance users were leading the liquidations, which is no surprise given that in the first two months of the launch of Binance Futures, an average of more than 60% of platform traders were using 20x or higher leverage and 21% of traders an eye-popping 125x leverage.

image1

The new ATH came just a day after MicroStrategy purchased an additional 262 BTC for $15 billion that brought its total holdings to 91,326 BTC. Michael Saylor, CEO of MicroStrategy said,

“People still aren’t sure: Are we crazy or are we not crazy?”

“The only way to get economic security is to invest in scarce assets that are not going to be debased by currency expansion. That is the environment that led us to decide we should consider Bitcoin as a treasury reserve asset.”

While Bitcoin bull Saylor continues to move towards 100k BTC holdings, much like the price, the number of addresses with a balance of more than 1k BTC has seen a drop.

According to analyst Lex Moskovski of Moskovski Capital, it could be larger addresses splitting for custody purposes or whale selling.

image2

Amidst all this, Elon Musk, the CEO of Tesla, which also has invested in Bitcoin, made another tweet in support of the cryptocurrency.

“BTC (Bitcoin) is an anagram of TBC(The Boring Company) What a coincidence!” tweeted Musk. “Both do mining & use blocks & chains.”

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Author: AnTy

Ethereum Price Bounces as the Network Prepares to Attract a New & Wider User base

Ether enjoyed some green moves over the weekend, going as high as $1,755 before making its way to $1,650 on Monday. As of writing, ETH/USD is trading around $1,700.

This upward move followed Bitcoin, making some recovery in tandem with the stock market. Besides aligning with wide market appreciation, Ether’s greens could also be attributed to an upcoming significant change to the network.

Over the weekend, Ethereum blockchain developers approved the EIP-1559 that will burn the network fees paid in Ether, creating a positive feedback loop for its price. The proposal will be part of the London hard fork that can come as early as July.

“This is probably one of the biggest milestones we’ve seen recently,” said Eric Turner, director of research at cryptocurrency analytics firm Messari. Up until the EIP 1559 goes into effect, the supply of Ether has been theoretically infinite. “Now, they’re actually controlling inflation on Ethereum,” and “in some cases, you’re looking at negative inflation, so it’s definitely important,” Turner said.

While scaling Ethereum will lower fees, per user, at the same time, it will “increase the overall userbase by even more, and therefore increase the total fees,” notes Qiao Wang of DeFi Alliance.

This proposal will help attract a new user base by making the platform “easier, faster, and cheaper to use,” explained Wang. Implementing EIP-1559 would mean that only Ether can be used to pay the transaction fees on the network, cementing Ether’s role in the ecosystem.

Tim Beiko, a senior product manager at ConsenSys, also said, going forward, “we’ll gauge demand for the network, and we put that average price as part of the network itself.”

EIP-1559 “fixes a bug in the economics of Ethereum we’ve known about from the start,” Beiko added.

A small bounce in Ether’s price relative to Bitcoin can also in part be attributed to NFTs (non-fungible token) going mainstream.

Traditional media is all over the NFTs, which are being sold for a hefty price. Recently, a publicly available 10-second video clip was sold for $6.6 million.

“At this point, NFTs have made a greater impact than DeFi. Both in terms of cultural impact and news users brought into the wide crypto ecosystem,” said Wang. According to him, it is largely because NFTs are easier than DeFi, from a users’ perspective. “Playing games, collecting items are easier than complex financial games,” he added.

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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

BWM, Ford & Honda Led Group, MOBI, to Track Vehicle Identities Using Blockchain

BMW and Ford are some of the main participants in launching the Vehicle Identity Standard’s second installment in collaboration with the Mobility Open Blockchain Initiative (MOBI).

The days of incorrect mileage, false maintenance, and damage histories when buying vehicles could soon end after some of the largest automakers in collaboration with transportation and blockchain leaders joined forces in developing a blockchain-based platform that will help in tracking and protect vehicle identity.

The group has released the second version of the Vehicle Identity (VID) blockchain platform. Dubbed VID II, the new platform is a continuation of VID I, which was touted as a vehicle birth certificate. The new standard focuses on vehicle registration as well as maintenance traceability.

The new standard will enable vehicle registration between states and nations to connect easily via a secure, shareable, and trustworthy ledger. The maintenance traceability will also offer a tamper-proof history to insurance firms, government agencies, and buyers, eliminating vehicle information asymmetry. Andre Luckow, the Emerging Technologies head at BMW, said,

“At BMW, we strive to create seamless digital solutions. The reference architecture in the VID II standard is a crucial building block in transforming the frictionless and trusted mobility ecosystem.”

VID II was authored by different worldwide mobility leaders and renowned tech firms to enhance multi-stakeholder interoperability.

BMW and Ford are the VID II co-chairs with support from IBM, Honda, Accenture, Car IQ, Bosch, DMX, Denso, Quantstamp, Luxoft, and AWS.

Apart from offering a secure vehicle identity standard, VID II will also be used in the supply chain, electric vehicle charging, and autos financing, among others.

According to Cynthia Flanigan from Ford’s research and advanced engineering department, VID II would be a building block that will offer enhanced transparent, safer, and efficient registrations and maintenance of a vehicle. The standard will provide the seller and the buyer with reliable data and information to help them make informed decisions.

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Author: Joseph Kibe