Investors3
2 weeks ago
Robinhood Acquires Bitstamp for $200 Million, Binance Reactivates Mastercard Purchases, and More Crypto News [Coinbase]
June 06 2024 - 3:37PM
IH Market News
Coinbase integrates network alerts in encrypted wallet with Notifi
The mobile wallet of Coinbase Global (NASDAQ:COIN) now offers automated alerts about network activities through the Notifi messaging service. The launch, in partnership with GMX, allows users on Arbitrum and Avalanche to receive notifications about imminent liquidations and governance changes. The integration uses the XMTP protocol, enabling secure communications between wallet users. This new functionality aims to enhance the user experience by providing relevant and timely information directly in the wallet.
Binance reactivates cryptocurrency purchases with Mastercard
Binance, the largest cryptocurrency exchange by volume, has announced the reactivation of Mastercard (NYSE:MA) for cryptocurrency purchases. According to a statement on the X platform, the functionality has been restored with a single purchase limit of up to 5,000 euros, about $5,440, and $20,000 for transactions in U.S. dollars. This return is part of a larger effort by Binance to meet stringent compliance standards, reinforcing trust among users and regulators. The company also plans to expand regulated payment options to further facilitate user transactions.
Robinhood acquires Bitstamp for $200 million to expand crypto operations
Robinhood Markets (NASDAQ:HOOD) has finalized the acquisition of Bitstamp, one of the world’s oldest cryptocurrency exchanges, for $200 million. This acquisition, expected to be completed in the first half of 2025, aims to expand Robinhood’s Bitcoin and cryptocurrency business, increasing its global reach and its ability to serve institutional and retail customers. Bitstamp, known for its resilience and reliability, will complement the services already offered by Robinhood, which sees in cryptography the potential to reorganize the financial system.
Bitdeer acquires Desiweminer in a $140 million transaction
Bitcoin miner Bitdeer (NASDAQ:BTDR) has purchased ASIC chip designer Desiweminer in an all-stock deal valued at $140 million. The transaction, announced on June 3, involves 20 million Class A ordinary shares of BTDR. The Desiweminer team will join Bitdeer’s ASIC design team in Singapore, with combined products ready for immediate launch. This move comes after a $150 million investment from Tether in Bitdeer. In response to the announcement, BTDR shares rose about 6.3%, to $7.45, in Thursday’s trading.
Core Scientific rejects acquisition offer from Coreweave
Core Scientific (NASDAQ:CORZ), a prominent cryptocurrency miner, has declined an acquisition proposal from Coreweave valued at $5.75 per share. The board stated that the offer undervalues the company, considering its recent deals and growth projections. This announcement comes after Core Scientific overcame a bankruptcy petition and demonstrated a robust financial recovery in the first quarter of 2024.
Ark’s Cathie Wood withdraws from Ether ETF due to intense fee war
Cathie Wood of Ark Investment has abandoned the launch of an Ethereum ETF in the U.S., citing the competitive fee war as a decisive factor. At the Consensus conference, Wood revealed that Ark’s spot Bitcoin ETF, with a fee of 0.21%, was not profitable. With Grayscale setting higher fees and losing market leadership, the industry faces a race to offer low fees. Analysts view Ark’s exit as a response to reduced margins and potentially lower demand for Ether ETFs compared to Bitcoin ETFs.
Bitcoin ETFs record record inflows of $1.4 billion in two days
On June 5, Bitcoin ETFs recorded inflows of $488.1 million, marking 17 consecutive days of inflows, a new record. In the past two days, inflows totaled an impressive $1.4 billion. The Fidelity ETF (AMEX:FBTC) led with $220.6 million, followed by the BlackRock ETF (NASDAQ:IBIT) with $155.4 million. The ARK ETFs (AMEX:ARKB) and the Bitwise ETF (AMEX:BITB) registered $71.4 million and $18.5 million, respectively. The Grayscale ETF (AMEX:GBTC) recorded inflows of $14.6 million, but still faces a total net outflow of $17.9 billion.
Bitcoin volatility increases with futures expiration and high projections for 2024
Bitcoin (COIN:BTCUSD) is fluctuating around $71,000 this Thursday, hitting an intraday high of $71,650.56 and trading at $70,956 at the time of writing. Among the top 10 cryptocurrencies, all are experiencing slight declines, except Ether (COIN:ETHUSD), which is up over 1%, and Toncoin (COIN:TONCOINUSD), which is up over 3%. The price of ETH is $3,831, while Toncoin is valued at $7.43.
However, with $2.2 billion in futures options expiring on June 7, Bitcoin could fall below the psychological mark of $70,000. Of these, $1.22 billion are Bitcoin futures options, indicating a “maximum pain point” of $69,500. This expiration may increase Bitcoin’s price volatility, creating a scenario of uncertainty.
Parallelly, Fernando Pereira, analyst at Bitget, highlighted with optimism the positive correlation between the performance of the S&P 500 and the price of Bitcoin. He predicts that “a 2.5% to 5% rise in the S&P 500 in the coming days could drive BTC up about 12%, reaching $80,000”. Additionally, Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, also shares an optimistic view, predicting that Bitcoin could reach $100,000 before the U.S. presidential elections. Kendrick suggests that, should Trump win, the price could reach $150,000 by the end of the year, attributing this outlook to the political climate, recent regulatory decisions, and potential favorable economic data.
Franklin Templeton plans crypto fund for institutional investors
Franklin Templeton, a $1.6 trillion asset manager, is considering launching a private cryptocurrency fund, according to The Information. The fund, aimed at institutions, will focus on assets beyond bitcoin and ether, with the possibility of passing on staking rewards. The manager has previously taken initiatives in the digital asset sector, including a bitcoin ETF and a tokenized government bond fund.
Tim Draper recommends Bitcoin for treasury diversification after SVB collapse
Venture capitalist Tim Draper suggests that companies diversify their treasuries by including Bitcoin (COIN:BTCUSD) as protection against banking risks. This recommendation follows the collapse of Silicon Valley Bank (SVB) in March 2023, which severely impacted several startups, including cryptocurrency clients. Draper proposes that companies split their capitals between large banks, smaller banks, and Bitcoin to avoid similar challenges in the future. This method offers a safety net, allowing operations to continue even in financial crises.
High short positions in MicroStrategy signal potential volatility
Analyses of net short positions released by Fintel reveal that MicroStrategy (NASDAQ:MSTR) faces high exposure to short selling, representing 23.14% of its market capitalization, indicating strong bearish sentiment. In contrast, Coinbase (NASDAQ:COIN) and Marathon Digital (NASDAQ:MARA) show lower exposure, with 1.77% and 1.68%, respectively. These positions may reflect hedging strategies, especially in contexts where companies maintain long positions in Bitcoin (COIN:BTCUSD), as is the case with Kerrisdale Capital.
SushiSwap expands to Bitcoin’s Rootstock sidechain
The decentralized exchange SushiSwap (COIN:SUSHIUSD) now operates on Bitcoin’s Rootstock sidechain, seeking to integrate DeFi features into the BTC ecosystem. Rootstock, launched in 2018, is one of the first Ethereum Virtual Machine (EVM)-compatible sidechains dedicated to Bitcoin. Its goal is to combine the security of Bitcoin with the flexibility of Ethereum’s smart contracts. SushiSwap’s migration follows the trend of expanding DeFi on Bitcoin, initiated by the Ordinals protocol and other projects seeking to incorporate typical features of networks like Ethereum and BNB Chain into Bitcoin.
B2BinPay launches TRX staking and expands blockchain support
B2BinPay, a leader in blockchain payment solutions, has introduced staking of Tron (COIN:TRXUSD) and expanded its blockchain support in the latest update. Now, in addition to Polygon (COIN:MATICUSD) and Avalanche (COIN:AVAXUSD), the platform includes Optimism (COIN:OPUSD), Arbitrum (COIN:ARBUSD), and Base. The highlight of the version is TRX Staking with an annual yield of 3-5%, allowing users to save on transaction fees by converting staking into bandwidth and energy. These additions reinforce the versatility of B2BinPay, offering more options and efficiency to its customers.
Avalanche and Blockaid join forces to enhance security in blockchain wallets
Avalanche (COIN:AVAXUSD) has announced a partnership with Blockaid to integrate security features into its Core wallet. The initiative aims to combat phishing scams and other attacks, using Blockaid’s threat database to simulate and verify transactions before execution. This measure intends to provide an extra layer of security for Avalanche network users. Despite criticisms about the false positives generated by the system, Blockaid emphasizes that this is a small price to pay to effectively block fraudulent transactions, promoting greater security in the decentralized finance ecosystem.
Web3 developer loses $40,000 after exposing keys on GitHub
Brian Guan, co-founder of Unlonely, lost $40,000 after accidentally making public a GitHub repository containing his secret keys. The incident, disclosed in a post on X on June 5, highlights the security risks in managing digital assets. The cryptocurrency community reacted mixedly, with some offering support, while others criticized his previous views on using ChatGPT for programming. The event raises questions about security practices and developers’ responsibility to effectively protect their digital assets.
Taiko innovates with decentralized sequencing on Ethereum Layer 2
Taiko, an Ethereum Layer 2 project, has launched its mainnet with permissionless sequencing and proof, becoming the first rollup to offer such functionality. This allows anyone to participate in block sequencing and validation, promoting greater decentralization compared to other rollups that use centralized sequencers. Taiko’s co-founder and CEO, Daniel Wang, highlighted the commitment to decentralization and the security inherited from Ethereum’s base layer. With this, Taiko aims to enhance Ethereum’s scalability and efficiency, reducing central dependencies and increasing community participation.
The Sandbox announces $20 million funding for metaverse expansion
The Sandbox (COIN:SANDUSD), a subsidiary of Animoca Brands, has raised $20 million to expand its creative economy in the metaverse. Led by Kingsway Capital and with participation from investors such as LG Tech Ventures, the funds will be used to enhance tools like Game Maker and VoxEdit, and to introduce advanced social interactions. The company is also developing a mobile version, scheduled for 2025, reinforcing its commitment to making the metaverse accessible and inclusive to a global audience.
Roger Ver released on bail in Spain awaiting extradition
Bitcoin investor Roger Ver has been released on bail of $163,000 by a Spanish court while awaiting possible extradition to the U.S. Accused of fraud and tax evasion, Ver must remain in Spain and appear in court every two days.
JPMorgan evaluates regulatory trend against crypto and CBDC in the U.S.
According to a report by JPMorgan (NYSE:JPM), cryptocurrency regulations in the U.S. are taking a restrictive direction, especially against the launch of a central bank digital currency (CBDC) and the adoption of cryptocurrencies by local banks. The report highlights that non-compliant stablecoins, such as tether (COIN:USDTUSD), are also under increasing scrutiny. The Payment Stablecoins Clarity Act, which favors regulated stablecoins, has a better chance of approval before the presidential elections. Other initiatives, including the FIT21 Act and regulations that make it difficult for banks to custody crypto assets, face significant challenges to be implemented.
https://ih.advfn.com/stock-market/NASDAQ/coinbase-global-COIN/stock-news/94000505/robinhood-acquires-bitstamp-for-200-million-bina
Minddoc7
2 weeks ago
UNCHAINED 6/5/2024 article: Coinbase Launches its Smart Wallets, Dubbing It Crypto's 'IPhone Moment" by Sage D. Young
On Wednesday, crypto heavyweight Coinbase announced the rollout of its smart wallets, which it is calling web3’s “iPhone moment” to onboard more than a billion users onchain, said Luke Youngblood, founder of Base-native lending application Moonwell in an interview with Unchained.
Rather than using a traditional wallet typically in the form of an application or browser extension that is reliant on passwords, third-party installations, or seed phrases to recover one’s private key, users can use smart wallets which gain security from passkeys.
A traditional wallet depends on a private key to sign, while smart wallets use passkeys that often depend on biometric identification to sign transactions, such as facial recognition or a fingerprint. The rollout of smart wallets is a move expected to simplify the onboarding experience of new users who are not crypto native.
“Onchain app developers today lose many of their many new users during the onboarding process when they leave the app to go install and fund a separate wallet,” wrote Coinbase senior director of product management Sid Coelho-Prabhu in the announcement.
Smart wallets enable people without crypto wallets to get one quickly and jump into using an application. As part of the effort to bring more users onchain, Base is also supplying gas credits to help developers sponsor the transactions of their application’s users. Of the several ways to earn gas credits, one way a developer can get $15,000 worth of sponsored gas, according to Moonwell’s Youngblood, is putting a “Create Wallet” button on their application.
Alternatively, to gain $1,000 worth of sponsored gas a developer can release a demo of their Coinbase Smart wallet integration, according to information platform smartwallet.dev.
“When the iPhone was launched into the 2000s and the 2010s, it took off. All of a sudden, anyone could use apps without having to buy a computer,” Youngblood added, “We feel really strongly this is going to cross the chasm from DeFi and onchain finance being this niche tool only usable by wealthy people in developed countries like ours to broad mainstream adoption.”
New Login Mechanism
Passkeys were developed by Apple, Google Microsoft, and the FIDO Alliance to act as a new method of logging in.
“Passkeys are generated on your device and are not shared or stored on any server, according to a Coinbase blog post.”The public key is stored securely on Coinbase servers, while the private key is securely stored on your device, protected by your device’s native authentication method, such as biometrics (e.g., Face ID or fingerprint) or a PIN.”
The announcement comes as a different Coinbase initiative is attracting substantial mindshare among those in the crypto ecosystem, namely, its layer 2 blockchain network Base, which has crossed 10 million total users in less than one year since launch and nearly 321,000 daily users on a seven-day rolling average as of Tuesday. Despite the rapid growth, Base’s total number of users is still a fraction of Coinbase’s 110 million.
Moonwell, the fourth largest protocol on Base with a total value locked of almost $95 million, is a day-one launch partner of Coinbase’s smart wallets, meaning users who already have smart wallets can interact with Moonwell onchain without paying gas fees on Wednesday.
Coinbase’s smart wallets is supported on a number of blockchain networks such as Base, Arbitrum, and Avalanche. While the base layer of Ethereum is also supported, it is “not preferred for use, due to gas cost,” according to a website dedicated to smart wallets.
https://cointelegraph.com/news/coinbase-smart-wallet-no-gas-fees
Minddoc7
4 weeks ago
A key crypto bill is set for a House vote tomorrow. The Financial Innovation and Technology for the 21st Century Act (FIT21)
FROM COINBASE BYTES: 5/21/2024
Inside the bill that could shape the future of the U.S. crypto industry
Even though nearly 20% of Americans have purchased crypto, and many of the world’s most innovative crypto companies are based here, the United States lags far behind most developed economies when it comes to crypto regulation.
This week, however, Congress is finally poised to vote on a landmark piece of legislation that would create a comprehensive, federal regulatory regime for crypto in the U.S.
The Financial Innovation and Technology for the 21st Century Act (FIT21) has been hailed by cosponsor Rep. Patrick McHenry (R-N.C.) as the “culmination of years of bipartisan efforts to finally provide clarity.” And in a recent town hall meeting, Rep. Ritchie Torres (D-N.Y.) praised the bill for offering “regulatory clarity where none exists. It protects both consumers and investors.”
Among many other things, the bill would clarify questions around which agencies have the responsibility to regulate various aspects of the crypto industry, create consumer protections for the 52 million Americans who own crypto, and give web3 developers looking to launch projects in the U.S. clear rules of the road.
In advance of the vote, which is expected to take place on Wednesday, here’s what you need to know.
Why is FIT21 important?
Given the U.S. is home to both Wall Street and Silicon Valley, it’s unsurprising that it’s grown into a global crypto hub. But the chaotic regulatory picture here — especially as compared to regions including the U.K., the EU, and some parts of Asia that have made significant strides in providing clarity — means crypto companies and innovators are increasingly looking outside the U.S.
An estimated 2% of web3 developers have been leaving the U.S. annually due to potential risks around basing a digital asset project here, and around 4 million blockchain-related jobs are at risk over the next 5-to-7 years.
Coinbase supports FIT21, saying the bill “offers a strong regulatory framework providing clear definitions, consumer protections, and a path for regulation that does not stifle innovation.”
Here are some of FIT21’s major provisions:
FIT21 would clarify which agency has regulatory jurisdiction over different parts of the crypto ecosystem.
Currently, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) both claim jurisdiction to regulate the crypto industry, and the fractured landscape makes it difficult for crypto companies to operate amid limited and confusing guidance and heavy-handed enforcement actions.
FIT21 would clarify that the CFTC has jurisdiction over digital commodities, while the SEC’s jurisdiction would be focused on digital assets offered as part of an investment contract.
How would crypto commodities and securities be defined?
In very basic terms, it comes down to decentralization. As a16z crypto’s FIT21 explainer puts it, the CFTC would regulate a digital asset as a commodity “if the blockchain, or digital ledger, on which it runs is functional and decentralized.” (Disclosure: a16z is a Coinbase investor.)
The SEC would regulate a digital asset as a security “if its associated blockchain is functional but not decentralized.”
The bill also provides a definition for decentralization, including the requirement that no individual can control the blockchain and that “no issuer or affiliated person” controls more than 20% of the project’s digital assets or voting power.
The bill would also create new consumer protections for crypto users.
The legislation helps protect consumers by requiring increased transparency and accountability from the crypto industry.
Digital-asset institutions like crypto exchanges would be required to segregate customer funds from their own, provide appropriate disclosures to customers, and reduce potential conflicts of interest through registration and operational requirements.
The bill would also require digital asset developers to provide accurate information about their project’s operations, ownership, and structure. It also requires lock-up periods for tokens issued to insiders.
Who supports this bill?
FIT21 passed out of two committees last July with bipartisan support, and is now advancing to a full House vote with supporters on both sides of the aisle.
Rep. McHenry, who chairs the House Financial Services Committee, has made passing FIT21 a top priority for 2024 during his final term in Congress before retiring. Meanwhile, a letter from eight House Democrats this week said that the bill would “promote a secure, innovative, and inclusive financial future.”
Can FIT21 pass in the House of Representatives?
Yes, it’s definitely possible. This past Thursday, another crypto-related bill (which would overturn a controversial SEC rule that makes it harder for banks to handle crypto customers) garnered support from 12 Democrats and 48 Republicans in the U.S. Senate, which has some observers hopeful that similar levels of bipartisan support are possible for FIT21.
“There’s still some big names on the Democratic side who haven’t made their thoughts known,” said Rep. Wiley Nickel (D-N.C.). “The advice I’m giving Democrats is, we cannot hand this issue to Republicans.”
What could happen next?
If FIT21 passes in the House, that alone represents a huge step forward. The bill’s next stop would be the Senate, which could approach the legislation in a variety of ways. Aside from a straightforward vote, one possible approach comes from Rep. French Hill (R-Ark.), who is in line to succeed Rep. McHenry as chair of the Financial Services Committee. Hill has suggested tying FIT21 to one of Congress’s larger spending bills before the end of the year.
The bottom line…
There aren’t many issues more important to the future of the U.S. crypto industry than regulatory clarity — and FIT21 would make major strides in that direction.
Investors3
1 month ago
Coinbase to Participate in the J.P. Morgan Global Technology, Media and Communications Conference
May 15 2024 - 4:05PM
Business Wire
Coinbase Global, Inc. announced today that Emilie Choi, President and Chief Operating Officer, and Alesia Haas, Chief Financial Officer, will participate in a fireside chat at the J.P. Morgan Global Technology, Media and Communications Conference on Tuesday, May 21, 2024, at 11:25 a.m. PT / 2:25 p.m. ET.
A live webcast and replay of the virtual session will be available on Coinbase’s Investor Relations website at https://investor.coinbase.com.
Disclosure Information
Coinbase uses the investor.coinbase.com and blog.coinbase.com websites, as well as press releases, public conference calls, public webcasts, our X feed (@coinbase), our Facebook page, our LinkedIn page, our YouTube channel, and Brian Armstrong’s X feed (@brian_armstrong) as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
About Coinbase
Crypto creates economic freedom by ensuring that people can participate fairly in the economy, and Coinbase (NASDAQ: COIN) is on a mission to increase economic freedom for more than 1 billion people. We’re updating the century-old financial system by providing a trusted platform that makes it easy for people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers. We also provide critical infrastructure for onchain activity and support builders who share our vision that onchain is the new online. And together with the crypto community, we advocate for responsible rules to make the benefits of crypto available around the world.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515689630/en/
Press:
press@coinbase.com
Investor Relations:
investor@coinbase.com
https://ih.advfn.com/stock-market/NASDAQ/coinbase-global-COIN/stock-news/93860125/coinbase-to-participate-in-the-j-p-morgan-global
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