Japanese Art Commission Platform With Over 1.5M Users is ‘Very Interested’ in Accepting Crypto

Japanese Art Commission Platform With Over 1.5 Million Users Is ‘Very Interested’ in Accepting Crypto as Payment

Japanese artwork commissioning service Skeb took to Twitter to share that it won’t be joining the non-fungible token (NFT) mania.

Last week, Skeb said that it has “no plans to issue NFTs,” and if it does, these digital artworks will belong to the creators. If they issue NFTs to clients, this will be the proof of “I requested it,” but the company noted NFTs can shift ownerships and that “will be meaningless.”

Non-fungible tokens are unique assets stored on a digital ledger that uses blockchain technology to establish a verified and public proof of ownership, and this year they have exploded into popularity and usage, recording more than $10 billion in sales.

“NFTs are now heating up as targets for investment, and creators may be issuing them without fully understanding how they work. It is also important to note that the ownership of NFTs is not in sync with the ownership of arts associated with them,” wrote the company on Twitter.

Skeb further said that NFTs are like museum memorabilia, and they should not be associated with copyrights or real properties. “NFTs should not be used as proofs of ownership of them,” it added.

As of Sept. 25, the company’s total number of registered users exceeded 1.5 million.

While not interested in NFTs, Skeb is “very interested” in using cryptocurrency as a payment method. This payment method will allow them to “keep the freedom of expression without any influence of credit card companies.”

This makes sense given that the platform accepts Visa and MasterCard but can’t accept PayPal as the payment giant doesn’t provide support to them. PayPal actually started offering crypto buying, selling, and storing last year, while Visa and MasterCard have also become crypto-friendly. This year, Visa also joined the NFT trend by buying a CryptoPunk and recently announced an NFT program to help creators.

“It isn’t that Skeb does not accept PayPal. It is that PayPal denied Skeb,” wrote the company on Twitter earlier this year.

As such, the company is actually currently having internal discussions regarding how it can be involved with cryptocurrency.

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Author: AnTy

Miami Mayor Luring Crypto Miners With “Very Inexpensive” Nuclear Power

Miami Mayor Luring Crypto Miners With “Very Inexpensive” Nuclear Power

In another step towards making Miami a Bitcoin hub, Mayor Francis Suarez is now pitching a local nuclear power giant to cryptocurrency miners.

Talking to the Wall Street Journal, Suarez said that concerns around Bitcoin’s environmental impact “come from the fact that a lot of the mining was being done in coal-producing countries.”

Meanwhile, nuclear power plants located away from populated areas lowers the opportunity costs for miners.

“We look forward to supporting the continued innovation and growth those companies bring,” said Bill Orlove, spokesman for Florida Power & Light Co., which owns the nuclear plant.

“The fact that we have nuclear power means that it’s very inexpensive power,” Suarez had said back in June.

Miami has also launched its own programmable crypto token called MiamiCoin to raise funding and use it for public services. CityCoins allows users to mine the token, which is a “mining-only” launched by “an open-source community of Miami supporters.”

Built on Stack protocol, CityCoins was “designed to unleash Bitcoin’s potential as a programmable base layer. As a result, CityCoins recycles Bitcoin’s PoW to power its on-chain transactions,” said the platform.

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Author: AnTy

Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time

“There is a small chance that these cryptocurrencies could become very, very valuable, and you don’t wanna not be exposed to them,” said Thomas Peterffy, who has been a Bitcoiner since the 2018 bear market.

While the brokerage service provider started offering crypto trading services just now, the firm’s founder has been involved with Bitcoin in a personal capacity for the past three years.

In an interview with CNBC, Thomas Peterffy, the founder of Interactive Brokers, revealed that he has been a Bitcoiner since 2018. This means, Peterffy bought Bitcoin during the bear market, showing his conviction in the leading crypto asset.

“I have had Bitcoin for three years in my portfolio,” said Peterffy on Thursday.

Earlier this week, Interactive Brokers, which manages $360 billion worth of assets, partnered with New York-based crypto broker Paxos — which was also chosen by payment giant PayPal to enable their digital asset services — to start offering its 1.5 million customers the option to trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

In the interview, Peterffy also revealed that he wanted to do this for some time now and finally took the step.

“I’ve been itching to do this because many of our customers have been asking for this, especially registered investment advisors whose clients are asking for some crypto exposure so we’ve been wanting to do this for quite some time.”

“Great Compression” Coming

The founder of one of the leading traditional brokers also shared that they are offering crypto trading services at low prices, at 0.12%, which he said is about half as much as the next lowest platform Gemini and one-third of Coinbase.

“So yes we have been itching to do this for a long time and we’re really happy to be able to do it.”

He actually believes that there is “great compression” coming in trading cost, which is going to go down in cryptos just as it has gone down in securities.

As for crypto being used as a payment mechanism, AMC Theaters CEO tweeted this week that they will be accepting Bitcoin, Ether, and other cryptos as payment for online tickets and commissions; Peterffy doesn’t really see crypto that way.

“Frankly, it doesn’t make sense to me because what is the advantage of these cryptocurrencies visibly,” said Peterffy, adding stablecoins are stable “just like the dollar” while being “better, easier regulated,” and the mechanism of using it for payment equally as simple.

“So, I don’t see it as but you never know so I think there is a small chance that these cryptocurrencies could become very very valuable and you don’t wanna not be exposed to them.”

Call for Clarity

When it comes to regulation with the SEC Chair working overtime to regulate the crypto industry and saying the space is troubled with fraud, hype, and abuse, Peterffy said these “criticisms are fine” but called for clarity.

“We really need to know what to do, and nobody is telling us,” but at the same time, the regulators come after companies two to four years down the road, and they accuse them of not doing things right, but they didn’t ever clear what to do in the first place, he said.

Commenting on the crypto offering high-yield, Peterffy does not understand how they can be so high yield, especially for a stablecoin. While it can be so long as people want to borrow the crypto and are willing to pay a lot for it, “otherwise I don’t see where the yield is coming from, and then I don’t see where the money comes from, it usually doesn’t come from a good place,” said Peterffy.

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Author: AnTy

Ether Price and Burn Unaffected as “High Severity” Bug Struck Ethereum Mainnet & Led to Chain Split

Ethereum had a chain split on Friday after a consensus bug hit the mainnet.

“The bug was very similar to the one that caused the chain split in November of last year,” wrote Kelvin Fichter.

This bug exploited the consensus bug that was fixed in Geth v1.10.8. Given that Geth clients account for 74.6% of all Ethereum nodes, it was a big deal.

“Ethereum has split into at least 2 versions, and only a third of Geth nodes are in the “correct” chain,” said Lucas Nuzzi, product manager at CoinMetrics. “Block difficulty has dropped 10% over the past few hours.”

Ethereum developer MH Swende then shared that the public announcement experiment about the attack and the subsequent requirement to update to v1.10.8 was successful, with most miners upgrading in time so that the canon chain became longer than the bad chain.

“But it was a really close shave,” said MH Swende.

The bug, which was a “high severity issue,” was found in an audit of Telos EVM, according to a press release. Ethereum core developers were informed, and a patch was released on August 24 to fix it.

“All Geth versions supporting the London hard fork are vulnerable (the bug is older than London), so all users should update,” a statement said when the fix was announced.

Ethereum core developer Tim Beiko meanwhile noted that three mining pools Flexpool, BTC.com, and Binance, were mining on the wrong geth version, which was asked to upgrade to the latest version.

A few minutes later, Binance Smart Chain (BSC) got exploited, since then, all BSC validators have upgraded to v1.1.2, and geth clients have been asked to upgrade to new hotfix to avoid DoS attack. “BSC is in a healthy status,” said the team early on Saturday.

Popular Ethereum wallet MetaMask said users connected to Infura have been unaffected by the Ethereum bug.

Infura, a blockchain development suite by ConsenSys, also clarified to its users that the security vulnerability that was exploited on the Ethereum mainnet affecting Geth versions <1.10.8 didn’t affect them.

“Infura is unaffected by this exploit. Our infrastructure was updated upon release of the hotfix on Aug 24,” it noted.

Following the attack on Ethereum, as people stopped using the network, for the time being, transactions on the network fell.

“Fork between latest geth and older geth on mainnet. Stay away from doing txs for a while till confirmed, unless you are sure you are submitting to latest geth,” advised Yearn Finance creator Andre Cronje following the incident.

However, the price of Ether was unaffected by the entire incident and is currently trading around $3,230, down about 25.7% from its all-time high in mid-May.

Ether also continued to be burned with more than 120,000 ETH, worth over $376 million burned since EIP 1559 implementation earlier this month.

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Author: AnTy

Difficult Time Ahead for Risk Assets; Fed Has Pres. Biden’s Blessing to Do ‘Whatever Necessary’

“The opportunity for bitcoin remains very, very bright,” according to Grayscale CEO, based on who’s investing, their size of allocations, and with the conviction, they are doing that. As for tapering, Guggenheim Chairman says the earliest it would start would be March next year.

This week started on a red note, with Bitcoin’s price going under $30k for the first time in over a month. But before the mid of the week, we made progress and came really close to $33k.

Commenting on this volatility, Michael Sonnenshein, Grayscale Investments CEO said, investors allocating to crypto know that it is going to be a part of it.

“Most of the investors we’re dealing with are not looking at short-term price movements or volatility. Their crypto allocations are really over the medium to longer-term time horizon. So I don’t think people feel terribly fazed when they see sudden movements in the market,” he said in an interview with Bloomberg this week.

But with Bitcoin falling in line with stocks this week, is it a diversification play? “Certainly,” said Sonnenshein, noting that for a lot of investors, it is a “differentiated return stream.”

While the Bloomberg hosts are hearing that there’s no money sitting on the sidelines wanting to get in, according to Sonnenshein, based on who’s investing in the market, their size of allocations, and with the conviction, they are doing that, “the opportunity for bitcoin remains very very bright.”

“Even though there is no Bitcoin ETF today investors aren’t waiting to add crypto to their portfolios. BTC is doing hundreds of millions of dollars a day in notional trading volume.”

Sonnenshein also commented on GBTC unlocks about which a lot of investors are concerned about and wondering about its effect on the fund growing so large.

“It’s a little too early to tell,” he said. “But what we have seen is with BTC trading at a discount to net asset value a lot of investors, particularly institutional money, have been stepping into that trade realizing that that capital can actually help them own or control more bitcoin than it would be if they were buying bitcoin in the spot market,” which will ultimately lead it back towards NAV and “in the longest case scenario it will be an ETF that would arbitrage away any discount to the net asset value,” Sonnenshein added.

Taper Tantrums

Interestingly, the government continues to pump money into the market that works in Bitcoin’s favor. While the Federal Reserve Chair has assured that quantitative tightening isn’t happening as of now, US President Joe Biden also said this week that inflation is temporary.

“The Fed is independent. It should take whatever steps it deems necessary to support a strong, durable economic recovery.”

The President said his plans to invest more in infrastructure and better care for older people and children would enhance productivity and raise wages without raising prices. This, he said, will “take the pressure off of inflation (and) give a boost to our workforce.”

With the Fed meeting next week and Jackson Hole, there are expectations that the Fed will provide some clarity on tapering. In an interview with Bloomberg, Guggenheim Investments Chairman Scott Minerd said,

“It’s been very interesting to watch how hawkish a number of the Fed FOMC members have become in such a short period of time… I think that by September the Fed will probably feel some obligation to lay out how tapering will work but may not be so anxious to actually announce a date when it would start. I think the earliest we would expect tapering to start would be March of next year.”

But any sign of acceleration would be interpreted as bad for the stock market and probably good for bonds, he added. Even before that, Minerd warned of rough months ahead.

“Usually the stock market has its weakest performance in the months of September and October,” with the old rule – sell in May go away, come again at Labor Day.

While warning about “a seasonally difficult time for risk assets,” Minerd talked about Bitcoin. Calling it a “risk-on asset,” he feels that the latest drop could have lower to go.

“I think that there is still more air to come out of this,” he said. This means, ultimately, something in the neighborhood of $15k will be the standard bull market for a bear market, according to him.

As such, he ain’t buying the cryptocurrency anytime soon but would make that decision based upon price action in the future.

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Author: AnTy

SLP Farming Is Turning Out to Be Very Lucrative, While Axie Infinity (AXS) Has the Lowest P/E Ratio

SLP Farming Is Turning Out to Be Very Lucrative, While Axie Infinity (AXS) Has the Lowest P/E Ratio

As we reported about 10 days back, Axie Infinity has been one of the very few projects generating positive revenue amidst the ongoing sideways boring market.

And, the adoption of play-to-earn games is only soaring.

The most popular NFT project right now is Axie Infinity, seeing record growth across the board. Interest for the search term “Axie Infinity” on Google Trend is also at its peak, while for “NFT,” it’s on a downtrend after topping out in March.

One of the top gas guzzlers on the Ethereum blockchain, Axie Infinity is actually the highest revenue earner in the past 30-days at $49.1 million, with no one coming even close as PancakeSwap, the second-highest one is earning $12.5 million, according to Token Terminal.

As for if this is sustainable, as ​​Spartan Black for crypto fund The Spartan Group noted, “none of the mainstream gamers even know about Axie….”

The project’s revenue is growing thanks to it amassing close to 500,000 daily active users (DAU).


And this growth is reflected in the token AXS, which is up a whopping 3,425% YTD. AXS price is enjoying the gains and leading in almost every time frame so far this year.

Every other day, AXS is surging to a new all-time high; the latest one hit today at just above $21. This month alone, the crypto asset is up 275% as the platform continues to gain traction.

If we look at the Price to Earnings ratio, Axie has the lowest among the most popular Dapps.

The token AXS was actually launched by Axie’s parent company Sky Mavis, a Vietnamese studio that raised $7.5 million in May for the game with backers including billionaire investor and Dallas Mavericks owner Mark Cuban, to bootstrap the growth of the company.

The blockchain-based game uses non-fungible tokens (NFT) to reward players financially in the form of Small Love Potions (SIPs), which can then be converted into fiat currency on cryptocurrency exchanges.

In the Philippines, the game has become extremely popular, as the company shared in its short documentary called “Play-to-earn: NFT Gaming in the Philippines,” which came out in May.

According to Dapp Radar, these decentralized play-to-earn games led by Axie Infinity that are reaching the masses could be the missing piece towards the mass adoption of blockchain technology.

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Author: AnTy

FONGO is Creeping into The Crypto Market Just as the Shape of the Curve Changes

While Bitcoin price is at a make or break point, “investor appetite remains very strong,” with money continuing to flow into private markets looking for a beta to the public market.

The stock market has recovered all the losses that it suffered after Federal Reserve officials started talking about tapering.

The S&P 500 rose 1.5% to 4,224.79, aiming for an all-time high above 4,255 from last Monday. The Dow Jones Industrial Average led the recovery as it went to nearly 33,877 following an increase of 1.7% but still down from 34,756 peak early this month.

Tech-heavy Nasdaq only rose 0.87% to 14,141 but is near its ATH of 14,174 made last Monday.

Gold sees a slight uptick at $1,780 per ounce, while the US dollar has eased some of its gains and is now at 92.105.

The dollar paused for breath as traders awaited US Federal Reserve chair Jerome Powell’s testimony after a surprise shift in the central bank’s policy outlook. Westpac currency analyst Imre Speizer said,

“We’ve had a meaningful shift from a longtime dovish stance to now a slightly hawkish one.”

“We’ve had a bit of a positioning cleanout – the whole world was mega short the U.S. dollar, and that’s in good part probably been cleaned out already.”

Powerless to Monetary Policy

While the Federal Reserve’s new policy shift and talks of tapering aren’t affecting stocks anymore, cryptos are surely getting battered.

The cryptocurrency market continues to struggle, with Bitcoin back under $31,150 today and Ether going to $1,850 yet again. The total crypto market cap has fallen even more this week and is now just under $1.3 trillion. He said,

“The tides of FONGO (Fear of Not Getting Out) are creeping in,” said Chris Weston, head of research at broker Pepperstone. “Bitcoin is also at a make or break point.”

However, the fact that the digital assets market is looking for clues from the largest central bank could be “indicative of an asset class growing up, while in other ways it was a stark reminder of how powerless all markets are when it comes to monetary policy,” wrote Jeff Dorman, CIO at Arca.

These clues also matter in the long-term because “the low dollar, low rate environment has been positive for all risk assets, including digital assets.”

Digital assets had the 5th decline in the past 6 weeks with high correlations and few drivers outside of macro.

China’s strict measures against crypto trading and mining are one of them. Not to mention, Grayscale Bitcoin Trust (GBTC) shares are still flowing in the market, at least until next month.

Capturing Beta to the Market

While crypto-assets are tanking hard, leverage and speculation have been wiped clean; sentiments are of extreme fear, Coinbase’s retail app has dropped from #1 on the IOS app store to 125th, in stark contrast, money continues to flow in the private markets so much so that deals are pricing at a higher valuation than a few months ago. Dorman wrote,

“Investor appetite remains very strong, as new entrants to the market are choosing to fund private companies and projects as a form of capturing beta to the market. This is another way of saying the shape of the curve has changed, with steep contango (future prices) but lower spot prices. In other words, it’s signaling that the market expects prices to go higher in the long-term regardless of near-term price action.”

He further noted that we had seen this before when investors switch between Bitcoin and Ethereum, currencies and DeFi, public and private, and digital assets and crypto stocks — all proxies for the growth of this asset class. Dorman added,

“Just like with the Fed, the end result is spelled out, but the path it takes to get their changes.”

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Author: AnTy

The Current State of Ethereum is Very Cheap

In a matter of two weeks, the Ethereum blockchain has gone from extremely expensive to use to now being very cheap.

During the recent market sell-off, as people rushed to sell their coins or were forced to sell their cryptos, made some attempts to buy the dips, and opened short to take advantage of the opportunity, the gas prices on the second-largest network skyrocketed to a record high that eclipsed 2000 gwei on Black Wednesday.

But now, as the activity in the market has died down, the fees have come down drastically.

As of writing, 26 gwei is the average gas price, as per Blockchair.

Also, the average fee on the network in USD is currently at less than $4.5, down from $72 on May 19.

In the past 24 hours, the Ethereum network degenerated $6.3 million in fees compared to $117 million on May 11th and $26 million a day early last month, as per Coin Metrics.

These levels were last seen after the DeFi mania was over and before the bull rally of 2021.

In 2020 summer, DeFi and Uniswap mania sent the fees higher; this time, a huge sell-off and doge-inspired meme crypto-like SHIB tokens were the main drivers. ETH price surging to a new all-time high of $4,380 also contributed, which is now at $2,550.

The growing decentralized finance space is certainly the biggest factor that keeps these gas prices elevated as the largest DEX by volume Uniswap is the biggest gas guzzler on Ethereum.

The popular DEX’s both version V3 and V2 at $2.5 million and $1.5 million, respectively, are earning more than Bitcoin’s $1.3 million daily fees separately, as per Crypto Fees.

Some are seeing the low activity and calm in the market; this pre-DeFi summer levels as a prelude to maybe another DeFi summer. But that remains to be seen as the market continues its sideways action, looking for a strong catalyst to decide its next direction.

ETH 13.47% Ethereum / USD ETHUSD $ 2,693.90
Volume 30.85 b Change $362.87 Open $2,693.90 Circulating 116.1 m Market Cap 312.77 b
9 h The Current State of Ethereum is Very Cheap 10 h May Is Headed to be One of Bitcoin’s Worst Months, Bulls and Bears Fighting for Dominance 2 d EIP-1559 Delivers What it Promises, But it’s Not Solving Gas Fees Problem

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Author: AnTy

May Is Headed to be One of Bitcoin’s Worst Months, Bulls and Bears Fighting for Dominance

There is still very heightened fear in the market, but Bitcoin’s Relative Strength Index (RSI) shows some oversold condition. The crypto industry needs to see “heavy investor inflows” to break out higher and enter the bull mode.

  • One of the bloodiest months in Bitcoin’s history is now coming to an end.
  • After having a spectacular Q1 2021 and Q4 2020, the leading cryptocurrency is on for a red quarter.

April recorded a mere 1.7% loss after striking a hatrick of green months in 2021 and a total of six green months in succession. Now, May is heading for its worst month.

In the last five years, before May 2021, November 2018 during the bear market marked the worst month with 36% losses. March 2020 saw Bitcoin price falling to $3,800 only recorded a 25% drop, even Jan. 2018 and March 2018 registered bigger losses at 27% and 32%, respectively.

This month, the price of Bitcoin went from about $56,800 to as low as $30,000 on Coinbase and nearly $28k on other crypto exchanges. As of writing, BTC/USD is trading around $37,000, representing a 35% loss in the month right now.

It is to be seen if May 2021 would end up being the worst as the second half of 2011 was also a brutal one with down months recording losses of 38.92%, 37.46%, and 36.26%. Also, Dec. 2013 had a 34.6% drop.

And this much loss in the month has the Crypto Fear & Greed Index falling to levels not seen in March 2020.

The first half of the month showed greed in the market, with the index having a reading of 73 only to drop to 10 in the latter half of the month. Today, we see some relief with a reading of 18.

However, in the South Korean crypto market, sentiment remains of exhaustion, noted DooWanNa, co-founder of StableNode. He added,

“Much fewer alt discussions, especially Korean alts, now. Many are focusing on BTC movement as many know if BTC nosedives, they are all screwed anyway. ADA and ETH holders are still optimistic. But for DOGE, XRP, ETC holders? Not so optimistic.”

But this much fear in the market means we could see the market change direction soon. Economist and trader Alex Kruger said,

“When the Crypto Fear & Greed Index gets this low, a strong rally often follows. The index is now as low as it was the day after Black Thursday in 2020.”

Also, Bitcoin’s Relative Strength Index (RSI) recently dropped to 23 and is currently around 38. When the RSI is below 30%, an asset is usually considered oversold and overbought above 70%.

According to Kruger, the fact that Bitcoin had its 54% retracement combined with a supportive macro environment meaning ample liquidity — interest rates are still virtually zero and money printing isn’t stopping — increasing adoption and record stablecoin balances support the bull case for cryptocurrencies.

But at the same time, there isn’t a lack of bearish factors either. The first being China not done cracking down on crypto. However, China’s strong stance against Bitcoin despite the central bank governor calling it an “investment asset” last month came just ahead of the politically sensitive 100th anniversary of the ruling Communist Party on July 1.

Also, the exchange rate between China’s yuan and the stablecoin Tether, one of the key gauges of local sentiment, fell 4.4% after the government’s warning but has since recouped over half of the loss, as per data platform Feixiaohao.

Furthermore, reduced corporate demand due to ESG, reduced institutional demand, funds having bought the top, taper talks worsening the macro environment, short term levered demand wiped out, with gas prices on Ethereum very cheap suggesting retail being dead, and incoming US regulations add to bearish concerns. Kruger noted,

“For the Bull Case to emerge victorious, the crypto industry needs to see heavy investor inflows (which I expect). This coming week is crucial.”

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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.


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.


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.


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
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
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
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