Here’s Why Coinbase Exchange IPO is ‘Huge’ News for the Crypto Market

The largest cryptocurrency exchange in the US, Coinbase, announced Thursday that it had filed confidentially with regulators to go public. It did not specify whether the exchange plans to go with an initial public offering (IPO) or other listing routes.

The day Coinbase divulged the information, the Bitcoin price also hit a new record of $23,800.

As per the official announcement, Coinbase Global, Inc. has confidentially submitted a draft regeneration statement on Form S-1 with the Securities and Exchange Commission (SEC), which is currently under the process of review.

The news of the San Francisco-based exchange going public is significant for the cryptocurrency market. Coinbase has long been rumored for a public listing for one of the best-known companies in the industry. Jake Chervinsky, the General Counsel at Compound Finance, said,

“If it wasn’t obvious, this is huge news.”

“Sure, there are other publicly-traded companies in the USA with a stake in crypto, but none remotely like Coinbase. The fact that a crypto exchange is suitable for public listing sends a massive signal of legitimacy to the finance world.”

Founded in 2012, Coinbase has been slowly growing its suite of tools, catering to both the retail and institutional investors.

The company is “spiritually” built to go public via an offering that involves digital tokens on a blockchain, said Coinbase co-founder Fred Ehsram in a recent interview with Fortune.

During the company’s last fundraising round for $300 million in 2018, Coinbase was valued at nearly $8 billion, which in the current hot crypto market, has now swelled to $28 billion on the back of an estimated 13,000 retail customers a day and custodying $25 billion of customer funds across 35 million customers. Mira Christanto of crypto data provider Messari noted,

“Following Coinbase’s IPO announcement, we value the company at $28 billion. Coinbase is one of the most prominent exchanges with $1 billion daily volume in Dec-20.”

This IPO will be an opportunity to cash out not only for the early shareholders, including CEO Brian Armstrong and the backers, venture firm Andreessen Horowitz, Y Combinator, and Greylock Partners but also for the employees the means to start their startups. MacroScope, involved in institutional trading and asset management, said,

“Getting major flashbacks right now to Amazon’s IPO in the 1990s, when I was a trader on a big sell-side desk. Feels very similar in several ways including industry backdrop and public sentiment, the latter of which included a huge amount of skepticism and scorn.”

Besides legitimizing the crypto industry, the Coinbase IPO is expected to present another opportunity to jump on the cryptocurrency bandwagon. Some feel this “watershed moment” may even clear how the SEC can approve a Bitcoin ETF.

However, the crypto market wants Coinbase to go public early in the bull run and not run the risk of the top the market.

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Author: AnTy

Decentralized Protocol, Graph, Mainnet Goes Live; Coinbase Lists GRT For Trading

The day The Graph mainnet went live, Coinbase also listed the network token.

On Thursday, the San Francisco-based cryptocurrency exchange announced support for The Graph (GRT) at Coinbase.com. Coinbase customers can now buy, sell, convert, send, receive, and store GRT.

The token available in all Coinbase supported regions except for New York State is also available on its Android and iOS apps.

The same day the exchange also enabled earning up to $3 in GRT tokens on Coinbase Earn.

The decentralized protocol for indexing and querying data from blockchains, Graph makes it possible to build serverless dApps that run entirely on public infrastructure. It provides developers all the public data to build decentralized applications.

On Thursday, the project launched its maninnet after three long years of testnet. The testnet saw more than 200 Indexers deploying nodes and over 1,600 individuals successfully completing the Curator program.

In six months, the project saw the usage of its hosted service growing 10x from 1 billion in June to over 10 billion in November. Top DeFi applications like Curve, Zapper, Uniswap, Decentraland, and others are already using their Subgraphs. Yaniv Tal, Project Lead and Co-founder of The Graph said,

“It’s surreal that after years of hard work, our vision for a global decentralized indexing and API layer for Web3 has become real. We really believe in decentralization and the launch of The Graph Network is a major milestone for enabling humans to cooperate and organize in a decentralized way.”

The native token of the project GRT is used to coordinate the network, and node operators called Indexers can stake and earn the tokens for processing queries. The ERC20 token is currently trading at $0.19, up 62%.

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Author: AnTy

SEC Commissioner Urges to ‘Embrace’ the Personal Financial Liberty as Crypto & DeFi Gains Adoption

Commissioner Hester M. Peirce of the U.S. Securities and Exchange Commission (SEC) made new remarks on Thursday urging regulators to honor the right to financial freedom.

Talking about the digital assets sector, Peirce, who is known as ‘Crypto Mom’ in the industry, said crypto-regulation is one area where “intersection between personal liberty and regulation looms large.”

She noted the new challenges posed by crypto because they are rooted in a key principle of people’s fundamental right to engage with one another without a trusted third party. At the same time, regulators are used to dealing with intermediaries “because they are easy to grab hold of and regulate.”

Peirce discusses how these challenges are growing as crypto evolves while the SEC struggles with the issues with their regulatory nature.

Now with the explosion of decentralized finance, they “will pose thorny questions and decisions for us in the coming years.”

Reembrace national passion for personal freedom

Peirce remains an advocate for the crypto industry. Once again, she wants regulators to “figure out a way to embrace the personal liberty principles undergirding it,” especially now that crypto is gaining adoption outside and inside the legacy financial system. She said in her speech,

“If we were instead to steamroll the technology’s liberty-enhancing features under the weight of regulation, we would lose a lot of the power of the new technology to afford opportunities to people whose autonomy has previously been curbed by.”

According to her, regulators are using climate policy as a disguise as it “does not raise the same kind of fears that other types of central planning would.” Peirce said,

“The decentralization of crypto is the opposite of central planning, which is making something of a comeback, with financial regulation as one of its primary tools. After an unsuccessful history, people would reject central planning out of hand unless it came in a disguise. The disguise of the day is climate policy.”

Directing these efforts through financial regulation will only make the capital markets less effective and more brittle at serving all sectors of the economy.

The crypto-friendly SEC commissioner also touched upon the accredited investors, which requires a person to be wealthy or have a high income. Although the accredited investor category has been expanded slightly, Peirce added,

“the presumption that people need to entreat a regulator for permission to invest still offends principles of personal liberty, which allow people both to earn and spend money as they see fit.”

Today’s “well-intentioned regulations” are very much in tension with personal liberty, and Peirce wants the regulators to “reembrace our national passion” for individual freedom.

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Author: AnTy

3iQ’s Ether Fund is Now Trading on Toronto Stock Exchange; The First ETH-Based ETF

On Thursday, the Canadian investment fund manager announced that 3iQ’s Ether Fund had completed its initial public offering (IPO) of 7,240,000 shares for $76.5 million. It has started trading on the Toronto Stock Exchange under the symbol QETH.U.

The trading started a couple of hours late due to a delay in closing the IPO prospectus. On resumption, the fund recorded a high of $11.48 and a low of $10.80 before ending the day at $11.02, with 345,331 shares traded across the day.

The Fund provides its holders’ exposure to the second-largest digital currency and an opportunity for “long-term capital appreciation.” Tyler Winklevoss, the co-founder and CEO of crypto exchange Gemini which will provide its custody services to the company, tweeted,

“Huge news for Ethereans. The Ether Fund by @3iq_corp will list on the Toronto Stock Exchange ($QETH).”

Ether’s price has been choppy for the past few weeks, going down to $535 today.

However, as we reported, institutional investors have been taking this dip as an opportunity to scoop more and more ETH through Grayscale’s ETHE product.

While nearly 3 million ETH are locked in ETHE, more than 1% of ETH’s circulating supply is deposited in ETH 2.0, and 6.1% of it is locked in DeFi protocols.

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Author: AnTy

“Nobody’s Going to Ban Bitcoin,” says OCC Brooks; ‘Clarity’ Coming in Early 2021

The acting Comptroller of the Currency (OCC), Brian Brooks, said on Thursday that new regulations on bitcoin and cryptocurrencies are coming soon.

Brooks appeared on CNBC’s “Squawk Box” to talk about “clarity” on the leading cryptocurrency to be expected in the next six-to-eight weeks but made it very clear that “nobody’s going to ban bitcoin.”

So this is one thing out of the way, which some anti-bitcoiners like JPMorgan CEO Jamie Dimon try to blame their ignorance on.

“We’re very focused on getting this right. We’re very focused on not killing this,” Brooks said.

“And it’s equally important that we develop the networks behind bitcoin and other cryptos as it is that we prevent money laundering and terrorism financing.”

Brooks also cleared the air around potential regulation heightened by his former employer Coinbase’s CEO Brian Armstrong last month. Armstrong took to Twitter to warn the crypto community that he had heard rumors that the Treasury Secretary Steven Mnuchin was working to regulate self-hosted crypto wallets before President Donald Trump’s term ends in January.

However, Brooks clarified, “I think you’re going to see a lot of good news for crypto before the end of the term.”

Adoption is too widespread & technology too important

Bitcoin has been on a tear recently, hitting a new all-time high this week, a price level not seen since the peak of the 2017 bull market.

According to Brooks, the upcoming rules and regulations “will make it easier for crypto investors to know how to invest, to know how institutions can be in the asset class, and those are the things driving prices at this point.”

In 2020, the largest cryptocurrency continues to see increased institutional adoption, with PayPal allowing users to buy and sell cryptos on its platform and legendary hedge fund managers like Paul Tudor Jones and Stanley Druckenmiller betting big on BTC. Brooks said,

“It may have been a bubble two years ago, but with more clarity, institutions that see this as a real thing are going to adopt at scale, which they’ve already started to do.”

As Brooks further shared, the regulators are also working on bringing more clarity around the nature of the assets and convey a “positive message.” Adding,

“Adoption is too widespread, the technology is too important, the need for the currency is too important for it to go away. I’m not too worried about that.”

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Author: AnTy

Youtuber Casey Neistat: Mining Bitcoin ‘Yielded More Heat Than the Lava on Mustafar’

YouTuber Casey Owen Neistat took to Twitter on Thursday to share with his 2 million followers that he had mined Bitcoin in the past.

While sharing his story of running the Bitcoin mining operation, the filmmaker, vlogger, and co-founder of the multimedia company Beme further commented on the mining machines’ extreme heat. He said,

“I once ran a bitcoin mining operation of questionable legality out of a NYC office building. I had to eventually shut it down because it sounded like I had a dozen lawnmowers running 24/7 and it yielded more heat than the lava on Mustafar.”

Neistat also shared that Sam Sheffer, who has worked at Engadget, Verge, and Mashable, was his accomplice in the Bitcoin mining endeavor.

This is not the first time Neistst shared his love for Bitcoin and all things crypto.

Earlier this month, the day the digital asset was trading above $15,000, he tweeted “BTC.”

The same day, he shared that he is also an investor in the second-largest cryptocurrency, Ethereum, which he bought at $40 in 2017 and is “still holding.”

The crypto market has been on a rampage for these past two months; while Bitcoin ran-up over 85% to hit $19,500, ETH jumped to $620. However, this week, cryptos are experiencing a pullback, with BTC trading around $16,880 and ETH at $509.

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Author: AnTy

PayPal Customers Bought the Dip on Bitcoin & Crypto

The losses that came late Thursday night was the biggest decline since the March sell-off. However, the largest cryptocurrency is still up 135% YTD with its investor base widening who are turning to it in search of a hedge against dollar weakness amidst loose monetary policy.

As we reported, just this week, VanEck launched a physically-backed Bitcoin ETP on the Deutsche Boerse Xetra exchange.

With PayPal diving in, the retail investors are piling in to chase the momentum. The volume on ItBit, the exchange service of Paxos, exploded on Nov. 26. BTC/USD accounts for over $50 million in volume.

ItBit Trading Volume

“It continues to attract both institutional and retail attention as a 21st-century substitute to the gold play,” said Byron Goldberg, who runs the Australian operations for crypto exchange Luno.

Just Noise Against the Larger Bullish Trend

The decline in prices, which has the market in distress even today, as BTC/USD trades under $17k, was exacerbated by unsustainably high leverage. Trader and economist Alex Kruger noted,

“Too many greedy longs bought the top on leverage, and made the price very vulnerable.”

This started soon after the market made a new 2020 high at nearly $19,500. The choppiness in the market is in part due to the Thanksgiving holiday in the US. Another reason could be the expiry of 78k Bitcoin options today. Shane Oliver, Head of Investment Strategy at AMP Capital Investors Ltd. in Sydney said,

“After big rallies in shares and various other assets, they are all vulnerable to a bit of a pause.”

“But Bitcoin more than most, as it surged higher far more and had become far more frothy with speculative interest.”

However, the market is showing resilience as any dips were almost immediately absorbed, making it a bullish dumping. Kruger said,

“I’m bullish. This correction represents noise against the larger bullish trend.”

“The steep contango structure that prevailed up until now finally narrowed,” said Denis Vinokourov of Bequant.

“Only time will tell whether this is the beginning of a longer and more extensive correction, but the overall market structure is very different to the last time Bitcoin traded near these levels. As such, the base scenario remains intact for now.”

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Author: AnTy

ECB’s President ‘Hunch’ is EU Might Push Forward with CBDC Plans; Decision in January, 2021

European Central Bank (ECB) president, Christine Lagarde, said on Thursday that the EU would make its decision on whether to pursue a digital euro in January 2021. This comes as more jurisdictions pay closer attention to Central Bank Digital Currencies, given the accelerated paradigm shift to virtual payment networks amidst the COVID-19 pandemic.

Lagarde shared her sentiments during the virtual ECB Forum on Central Banking. In-attendance were other prominent monetary authority figures, including the Fed Reserve chair Jerome Powel and Andrew Bailey, Bank of England governor.

While all the three figures commented on the ongoing developments in CBDC, Lagarde hinted that the EU might decide to move forward with a CBDC, although the decision will be made collectively. She stated that,

“We might well go in that direction … My hunch is that it will come.”

Lagarde was also keen to highlight that the ECB is not in a race to be the first but rather seeks to derive value from a CBDC. She noted that if the CBDC option is fast, cheap, and highly secure, then the ECB should explore the possibilities of joining other nations that have forged ahead with CBDC plans.

“If it is going to contribute to better monetary sovereignty, a better autonomy for the euro area, I think we should explore it. If it is going to facilitate cross border payments, which are very laborious in quite a few corners of our big world, then we should explore it.”

Per Lagarde’s time-frame estimates, a digital euro will take at least 2-4 years before it is finally launched. This will allow the ECB to adequately prepare and get it right once the project is ready for mainstream adoption. Some of the ECB issues are still trying to figure out include Anti-money laundering, terror-financing, and users’ privacy.

Notably, the ECB intensified its efforts in CBDC research this year and recently published a report on the possibilities and implications of a digital euro. The central bank also applied for a trademark the name ‘digital euro’ as part of its effort to hedge, should it chose to roll out a CBDC.

The Fed Chair & Bank of England Governor’s Takes

Jerome Powel, who also shared his comments during the virtual policy panel, said that the U.S is committed to looking at the ‘potential costs and benefits of a central bank digital currency.’ However, he reiterated that it is more important to get it right than being first, especially with the U.S dollar’s position as the world’s reserve currency.

Andrew Bailey, the BoE governor, touched on private stablecoins in what seemed to be a warning to issuing authorities. According to him, the bar is very high for stablecoins, given the users’ expectation of value certainty. In fact, he went on to highlight that the bar or answer might actually be CBDCs.

“They haven’t met that bar in my view. And it may be that the answer to that bar is actually central bank digital currency.”

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Author: Edwin Munyui

Altcoins & DeFi Back in the Game as Bitcoin Consolidates

After having a run-up of over 20% this week, Bitcoin is taking a breather.

On Thursday, the leading digital asset went to nearly $16,000 after starting the month just above $13,000. This started in October when BTC traded around $10,000 and got into action towards the end of the month.

Now, we are trading under $15,330, at the time of writing, in the red with $2.51 billion in ‘real’ trading volume.

But while Bitcoin is consolidating after scoring a 34-months high, this is a good time for the depressing altcoins to finally do something.

Ether that has been silent during Bitcoin’s run-up finally scored above $465, a level not seen since July 2018, which in part was because of the announcement about ETH 2.0 finally coming in December. For the launch of Beacon Chain, the core of ETH 2.0, ETH deposits have started flowing in too.

While almost everything is enjoying gains, it is yet again the DeFi party, which seems to have finally capitulated.

After dominating the Q2 and exploding in Q3, the decentralized finance sector topped out in September. While the total amount locked in the sector tried to keep up, the price of DeFi tokens took a severe beating.

CRV actually went down 99% from its high while the majority of them dropped 75% to 95%.

But now, the DeFi tokens are being exciting once again, especially YFI. The DeFi darling that went above $40,000 crashed to $7,500 on Thursday and has been looking hideous this week when the volume shot up, and YFI price started trending up.

As a matter of fact, in just two days, it gained over 118% of its value back. As of writing, YFI has been trading at $14,200.

“YFI pushed +33% in an hour. No news. Just a monster buyer/s. This is how potential trend reversals look like,” noted one trader.

Other notable gainers include SOL (+35%), Aave (+30%), SNX (+27%), SRM (+24%), and CRV (+20%).

“Do not underestimate the power of what may seem like superfluous narratives in this space. There’s a reason alts have been pulling the same for years; it works,” said trader Hsaka. “AAVE continues to be the DeFi leader with the largest % change in OI too.”

And these gains can be seen reflected in the record DeFi TVL at $12.48 billion, as per DeFi Pulse.

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Author: AnTy

This Election Week is Won by Markets; US Dollar Under Pressure with Risk On

On Thursday, the price of Bitcoin went nearly to $16,000 and is currently holding around $15,500. Having rallied 20% this week, the digital currency seems to be now in consolidation mode providing the altcoins the chance to surge.

These gains came during the US election week, which helped the leading digital currency beat major asset classes this year.

With 115% gains in 2020, Bitcoin exceeds gold’s 28% returns and S&P 500’s 8.60%.

Everything is aiming for their all-time highs following the Nov. 3 election as Joe Biden’s lead strengthened with the possibility of a Republican Senate. Such an outcome of a split government, according to some, could lead to an increase in fiscal stimulus.

“We still anticipate that there will be a fiscal package in excess of $1 trillion next year,” said James Knightley, chief international economist at ING Group in New York.

Besides the escalating pandemic and looser monetary policy, the sliding greenback helps push the digital asset higher as investors seek stores of value.

The dollar has its worst week since March, and according to Kit Juckes, a strategist at Societe Generale, “If you had to write a playbook that would get people to say ‘I need an alternative to the dollar,’ this whole process fits that story.”

During the period BTC rallied, the risk-on backdrop triggered a sell-off in the dollar, which fell to a 2018 low.

“Gold, silver, and Bitcoin have worked like a dream in the weak U.S. dollar environment and has attracted huge client interest,” wrote Chris Weston, head of research with Pepperstone Group Ltd., adding, further weakness in the dollar would encourage “an even more constructive view” on both gold and Bitcoin.

Crypto markets also have a history of wild swings, and it is currently on its third such cycle, riding a tide of liquidity.

Mania isn’t Here Yet

In the stock market, tech stocks are rallying on expectations that key progressive goals like antitrust reforms won’t be implemented by Biden.

According to Goldman Sachs analysts, financial services companies will also benefit from better capital markets and a lower likelihood of tighter regulation.

Already, more than $4 trillion has been added to global equity markets this week, putting it on track for the third-biggest week of 2020.

And with this, investors are back into pouring cash into global markets with a force that hasn’t been seen in months. The same is happening in the crypto markets, which added about $50 billion during the same period.

This can be seen in the open interest in Bitcoin options, which is reaching $4 billion. As per CME’s latest COT report, short interest from hedge funds has made a new all-time high, the same as short interest from dealers and intermediaries.

According to on-chain analyst Willy Woo, Bitcoin is not topping; rather, it will see more bullish action after consolidation.

As for the price action that we have recently, it was the “most organic pump” instead of a squeeze from derivatives traders as a “ridiculous amount of coins were scooped up and moved off to individual wallets,” — the largest one day scoop up in 5 years.

Before the pump started, the influx of new HODLers has been “through the roof,” the kind of momentum last seen in Oct. 2017, just one month before the mania started.

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Author: AnTy