Značka: coinbase

Coinbase junk bonds tank amid market rout and creditors’ fears

The price of Coinbase’s junk bonds are tanking amid an underwhelming performance in Q1 and fears over what could happen in the event of a bankruptcy. According to bond trading data from Trace Bonds, both of Coinbase’s junk bond offerings have dropped roughly 17% and 5.2% since its Q1 report on May 10 to sit at $63 and $62.31 at the time of writing. Overall they are down 20% and 19% apiece since the start of this month. 10y coinbase bonds trading at 63 cents on the dollar pic.twitter.com/fqmKmiXk5E— state (@statelayer) May 12, 2022Junk bonds are a form of corporate debt issued by firms that do not have investment-grade credit ratings. Firms borrow a certain amount of money via the junk bond offering, and set a maturity date (date of return) and an interest rate that they will pay on top of the borrowed capital. As junk bonds have a lower credit rating, they command higher interest rates than investment-grade corporate bonds. In Coinbase’s case, it raised roughly $2 billion in September across two evenly spread offerings at 3.375% over seven years and 3.625% over 10 years. Notably, both junk bond offerings launched at $100 each, and have been steadily trending downwards ever since. The sharper than usual drop this month however suggests that investors are losing confidence in Coinbase moving forward. The price of Coinbase stock (COIN) has also dropped 20% since the date of its Q1 report, although investor sentiment was already bearish beforehand, with the price dropping a hefty 50% since the start of May. Bankruptcy proceedings disclosureThe major crypto exchange posted Q1 losses of $430 million alongside a 27% decrease in revenue compared to the first quarter of 2021. Shortly after the report had been released, concerns were raised over a disclosure in the Q1 report regarding the fate of user’s assets if the firm were to be “subject to bankruptcy proceedings.”The disclosure noted if the company were to go bankrupt, user’s digital assets held on the platform may “be subject to bankruptcy proceedings” and could see them treated as “unsecured creditors.” Not your keys, not your crypto. This is from coinbase. pic.twitter.com/CaIzQBYQ38— Richard Heart (@RichardHeartWin) May 11, 2022

This appeared to cause fears on two ends of the spectrum, as users were concerned that they may not be able to retrieve their assets if Coinbase were to dissolve. But bond hodlers appeared concerned by the idea that user’s could still have some claim on Coinbase’s assets as they expect to be ahead of them in t line.Coinbase CEO Brian Armstrong attempted to squash fears however, after he noted on Twitter that “we have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121.”Related: Crypto-associated stocks hammered as COIN and HOOD drop to record lowsEarlier today Armstrong also shared a note concerning the past week of events.The CEO called for calm despite admitting how “it can be scary to see our stock price down with associated negative headlines,” as he suggested that the firm can handle the current market downturn: “In times like these we need to step back, and zoom out. Nothing about Coinbase changed this week, we are the same company we were yesterday, or a year ago. If anything, we are in an even stronger position given our balance sheet.”“This last bull cycle has generated tremendous profit and cash that adds to our resiliency, and we have built an incredible team with some of the best talent in the world,” he added.

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Crypto-associated stocks hammered as COIN and HOOD drop to record lows

Bad news continues to dominate crypto media headlines and May 12’s juiciest tidbit was the unexpected collapse of the Terra ecosystem. In addition to the weakness seen in equities, listed companies with exposure to blockchain startups and cryptocurrency mining have also declined sharply.Bitcoin mining stocks continue bleeding…Mining investors probably wish they had simply bought bitcoin instead at the beginning of 2022, as most bitcoin mining stocks have underperformed bitcoin by a wide margin. pic.twitter.com/anSoUEoUJ1— Jaran Mellerud (@JMellerud) May 11, 2022While it may be easy to blame the current pullback solely on Terra’s implosion, the truth is that the price of Bitcoin mining stocks has largely mirrored the performance of BTC since reaching a peak in November 2020. BTC/USDT vs. RIOT, HUT, MARA and BITF .1-day chart. Source: TradingViewIt’s likely that the price of these stocks will struggle as long as Bitcoin continues to bleed lower in the face of multiple headwinds, including rising interest rates, inflation and global conflict. Crypto financial services also correctIt’s not just Bitcoin mining stocks that have fallen under the pressure of late as all manner of companies with any kind of association with cryptocurrencies have been feeling the heat in May. Following the release of forward-looking statements that project a continued decline in active users and trading volume, the price of Coinbase (COIN) stock hit an all-time low of $41.23 in the early trading hours on May 12. COIN price 4-hour chart. Source: TradingViewRobinhood also saw its stock price drop to a new all-time low of $7.73 on May 12, one day after the firm revealed that its crypto transaction revenue fell 39% year-over-year in Q1 from $88 million in 2021 to $54 million in 2022. While Robinhood is not a crypto-only exchange, roughly 18% of its Q1 net revenue came from crypto-related transactions, which is significant when comparing the size of the crypto market to the other markets supported on the platform. Related: Bitcoin fights to hold $29K as fear of regulation and Terra’s UST implosion hit crypto hardWeakness spreads throughout the tech sectorThe declines in cryptocurrency-related stocks mirror a backdrop of widespread weakness in financial markets, especially the tech sector.Several years of optimistic projections and quantitative easing have resulted in an overvalued and volatile tech sector that throws fits if earnings fall below expectations. Once the darlings of the mighty stock market, FAANG stocks have led the charge lower, weighing down the Nasdaq, which closed April with its worst monthly performance since the 2008 financial crisis. NASDAQ composite 1-day chart. Source: TradingViewThe losses for the Nasdaq further quickened in May as the benchmark index fell another 9.15% to its lowest level since November 2020.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Indian central bank’s 'informal pressure' disrupted payments: Coinbase CEO

Just three days after debuting in the Indian market, United States-based crypto exchange Coinbase abruptly stopped using United Payments Interface (UPI), the most popular payment service in the region. Coinbase CEO Brian Armstrong later revealed that the service disruption was due to an “informal pressure” from India’s central bank.During Coinbase’s 2022 Quarterly Earnings call, Armstrong spoke about the company’s global expansion plans while acknowledging Coinbase’s role in starting the conversation with regulators related to crypto adoption. When asked about the impact of the recent disruption related to offering payment services in India, Armstrong stated:“So a few days after launching, we ended up disabling UPI because of some informal pressure from the Reserve Bank of India (RBI), which is kind of the Treasury equivalent there.”While highlighting the Supreme Court’s ruling from March 2020, which forbids RBI from banning banks to deal with crypto business, Armstrong warned about certain government entities — including the RBI — “who don’t seem to be as positive on it.”The CEO revealed Coinbase’s aggressive strategy for international expansion that involves launching services in new jurisdictions and work with the regulators based on their reactions to Coinbase’s presence in the region. Highlighting India’s attempt to impose a shadow-ban on crypto businesses, Armstrong added:“Basically they’re applying soft pressure behind the scenes to try to disable some of these payments which might be going through UPI. I guess we have a concern that they may be actually in violation of the Supreme Court ruling.”Despite the evident regulatory hurdles, Coinbase prepares for a relaunch in the region by introducing other modes of payment as it tries to cater to the high demand of crypto investors. Armstrong concluded:“In most places in the free world and in democracies, crypto is going to eventually be regulated and legal. And the way that we push the conversation forward is by taking action.”On April 1, India introduced its first set of crypto laws that requires crypto investors to pay 30% tax on unrealized crypto gains. The move, however, negatively impacted the crypto ecosystem as trading volumes plummeted and in-house businesses shifted away into friendlier jurisdictions.Related: Binance to drive crypto and blockchain awareness among Indian investorsEyeing on the same pool of untapped market, crypto exchange Binance launched three key educational initiatives to fast-track educating Indian investors and students about the cryptocurrency and blockchain ecosystem.Along with the announcement, Binance highlighted that the lack of education among Indian regulators and policymakers currently hinders the widespread adoption of crypto.

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Coinbase CEO has ‘never been more bullish’ even after $430M Q1 loss

Cryptocurrency exchange Coinbase has disclosed its first net loss as a public company of $430 million in Q1, but CEO Brian Armstrong said on an earnings call that he’s “never been more bullish on where we are as a company.”In its first quarter 2022 report Coinbase disclosed that revenue had dropped 27% to $1.17 billion, down from $1.6 billion in the first quarter of 2021 and a long way off its Q4 2021 revenue of $2.5 billion. Monthly transacting users also dropped by over 19% to 9.2 million, from last quarter’s 11.4 million.Shares of Coinbase had already fallen by over 16% to close at $73 over the day, and after the earnings disclosure after hours trading saw the price fall further to $61 at the time of writing. Coinbase’s shares have been on a steady fall since November 2021 where it almost reached the $380 high from its initial public offering in April last year.Despite the figures, Armstrong explained why he was still optimistic on an earnings call:“There are so many customers beating a path to our door that we have to have all hands on deck just to keep everything running, so the down periods are often sometimes kind of a welcome change from that in the sense that we get to focus on building the next layer of innovation that will benefit us in the next cycle.”Armstrong said that the company was “greedy when others are fearful”, acquiring talent and focusing on projects and infrastructure for the future. Addressing what he called the “elephant in the room” of the company earnings downturn, he said:“The broader markets are down. We’re seeing a downmarket for growth tech stocks and risk assets, Coinbase and crypto is no exception to that. The good news is as a crypto company we’ve lived through many different cycles in crypto, including major draw downs, which I think make us well suited to operate through these environments.”He reminded shareholders of a prospectus released by the company a year ago which stated it aimed to grow crypto adoption long term, operating the company at a rough break even.In its shareholder letter Coinbase mentioned its recent non-fungible token (NFT) market launch as an area it was focusing more on in a bid to become a market leader in the space and its ambition to develop its platform as an “on-ramp to the cryptoeconomy”.Related: Coinbase CEO responds to insider trading allegations with changes for token listingsArmstrong stated that 54% of the platform’s active users are doing something other than crypto trading, but didn’t clarify what activities and made no mention of the new NFT marketplace in his opening statement.When asked specifically if the company is pleased with the activity in its NFT marketplace, Armstrong said it doesn’t share “metrics on any of our new initiatives” adding that “there’s a lot to build and the opportunity in the NFT space is enormous.”The first day of the public opening of the marketplace saw only $75,000 in transaction volume taking place across 150 transactions according to on-chain metrics, a small percentage of the over 8 million email addresses which signed up for the waitlist.Finishing his opening address Armstrong said the industry was in its early days and Coinbase sees the opportunities ahead adding that “regardless of whether the market is up or down, we’re going to keep building.”

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Crypto Biz: The real reason crypto hodlers should care about the Federal Reserve, April 28–May 4, 2022

Wall Street’s slow embrace of crypto means we all have to start watching the Federal Reserve again. Cointelegraph parsed through the latest Federal Open Market Committee (FOMC) policy statement on Wednesday to try and uncover some nuggets of useful information. You can think of it as an exercise in financial esoterics to uncover the hidden meaning behind the Fed’s decision-making. As it turns out, the decision to raise interest rates by 50 basis points was already expected, so the actual FOMC document provided very little new information. But, Fed Chair Jerome Powell sparked a late rally in crypto and stocks on Wednesday when he said 75 basis-point increases aren’t on the table.You wanted the institutions to adopt crypto, didn’t you? Now, the asset class is trading almost in lockstep with other risk assets such as stocks, which means the Fed’s actions, words, intentions and expectations matter — at least for the foreseeable future. Fed hikes interest rates by 50 basis points in effort to combat inflationAt the conclusion of their two-day policy meeting on Wednesday, FOMC members voted to raise the target for the federal funds rate to between 0.75% and 1%. That equates to a 50 basis-point increase for those keeping track. The last time the Fed hiked rates that much was over 20 years ago. Clearly, central bankers were wrong about inflation, or else they wouldn’t need to hike rates so aggressively. FYI: Central bankers are wrong about a lot of things. Yet, we have no choice but to wait in anticipation for their edicts. Whether the Fed will continue to hike aggressively into 2023 is a subject of fierce debate. My expectation is that they will be forced to stop once something breaks. *FED RAISES RATES 50 BPS, TO START RUNOFF JUNE 1 AT $47.5B/MTH*FED EXPECTS `ONGOING’ INCREASES IN RATES WILL BE APPROPRIATE*FED: RUNOFF PACE TO RISE TO MAXIMUM $95B/MTH AFTER THREE MONTHS— Christophe Barraud (@C_Barraud) May 4, 2022Coinbase’s plans to purchase firm behind Mercado Bitcoin fall through ReportEverything was looking so positive for Coinbase in its planned acquisition of 2TM, the multi-billion dollar company behind Brazilian crypto exchange Mercado Bitcoin. But the acquisition plans fell through this week and nobody provided an explanation as to why. A Coinbase spokesperson gave a generic comment about the exchange being “committed to the Brazilian market” without elaborating further. But there could be something more behind this story. We tried to dissect it for you as carefully as possible. Coinbase took out the first Bitcoin-backed loan from Goldman SachsSpeaking of Coinbase, the United States exchange also made positive headlines this week after it was revealed to be the mystery company that took out Wall Street’s first Bitcoin-(BTC)-backed loan from Goldman Sachs. This is actually a huge development if you think about it. Not only does it signal Goldman’s utter capitulation on the topic of Bitcoin after trashing it for years, but it also cements legacy finance’s embrace of digital assets. Collateralized loans provide the issuer with certain guarantees in case a borrower defaults. Well, Bitcoin is good enough as collateral for Goldman Sachs. MicroStrategy may explore ‘future yield generation opportunities’ on 95,643 BTC holdingsIf you held 129,218 BTC, wouldn’t you try to make money off some of it? That’s what business intelligence firm MicroStrategy is aiming to do with a portion of its “unencumbered” Bitcoin. That’s just a fancy way of saying Bitcoin that isn’t pledged as collateral. MicroStrategy has 96,643 BTC on its books. CEO Michael Saylor has made it abundantly clear that he will continue to stack BTC regardless of its price. As of March 31, his company’s BTC holdings had a cumulative impermanent loss of more than $1 billion. Today, @MicroStrategy is the world’s largest publicly traded corporate owner of #bitcoin with over 129,200 bitcoins.Please join the management team at 5pm EDT as we discuss $MSTR Q1 2022 financial results and answer questions about our business & outlook.https://t.co/UOSdCKQOSx— Michael Saylor⚡️ (@saylor) May 3, 2022

Don’t miss out on the most bullish cryptocurrencies!Although crypto markets haven’t given us a lot to be excited about, there are always diamonds in the rough that will outperform. On The Market Report this week, I engaged in a friendly debate with colleagues Jordan Finneseth and Benton Yuan about which crypto is the most bullish in 2022. You may be surprised to hear that I selected Dogecoin (DOGE), whereas Benton picked Ripple (XRP) and Jordan went with the lesser-known Kava (KAVA). Watch the replay below and let us know your pick for the most bullish crypto of 2022![embedded content]Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

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Tumbleweeds blow through Coinbase NFT on its first day: Just $75K in volume

Coinbase, one of the largest crypto exchanges by volume, opened its beta non-fungible token (NFT) marketplace to the public on May 4 with on-chain data showing a maximum of 150 total transactions on the day and $75,000 in USD volume.The transactions captured by Dune Analytics show the total amount which took place through the 0x Protocol, the infrastructure behind Coinbase’s marketplace. Whilst not all transactions are guaranteed to be from Coinbase, since 0x announced its support for NFTs in January it has yet to announce any other partners apart from Coinbase.Number of market transactions on the 0x Protocol. Dune Analytics.The number pales into insignificance compared to expectations arising from the marketplace’s waitlist. More than 8.4 million email addresses signed up for the waitlist before it moved into beta testing on April 20 with only a select few able to create profiles to buy and sell NFTs. Analytics show just over 1,200 total users have transacted on the platform up until May 5, a mere 0.014% of the waitlist.It’s been 2 weeks. Raise your hand if you’ve made a purchase on @Coinbase_NFTAs a matter of fact, raise your hand if you’ve even logged in— quit.pcc.eth (@0xQuit) May 5, 2022Market volume figures in USD aren’t hitting the mark either, May 4 saw just over $74,700 in volume transacted on Coinbase’s new marketplace. While that might please critics who claim the NFT market is in sharp decline, by comparison the largest NFT market OpenSea recorded $1.18 billion in transaction volume on the same day.Coinbase announced the waitlist for its NFT platform almost seven months ago in mid-October 2021 with some Twitter users noting that the launch took too long to open to a public who had other options like OpenSea and LooksRare listing popular collections.Related: 5 NFT marketplaces that could topple OpenSea in 2022Some users report that the marketplace in its current form doesn’t differentiate from its competitors as it needs a self custody wallet and requires gas fees. Coinbase does have future plans to change this as its January partnership announcement with Mastercard will look to make the platform friendlier to first time users with the ability to purchase NFTs via credit card.The low user numbers for its marketplace come over a week before a Q1 earnings call on May 13, Coinbase’s stock price is down 68% from its all-time high of $357 on November 10 hitting a low of $112 on April 29.

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Nifty News: Louis Vuitton and Johnnie Walker dabble in Web3

This week’s Nifty News sees the arrival of Louis Vuitton to the nonfungible token (NFT) gaming scene, Johnnie Walker’s entry into Web3 and Elon Musk’s apparent embrace of Bored Ape Yacht Club.Louis Vuitton makes its mark in the NFT gaming scene To commemorate Louis Vuitton’s bicentennial birthday in late 2021, the French luxury brand launched a NFT game called “Louis: The Game.” At the time of publication, the game has been dowloaded more than 2 million times on both Android and iOS devices. “Louis: The Game” follows its protagonist, Vivienne, as she overcomes challenges, collects candles and other collectibles. NFT artist Beeple designed 30 NFTs embedded within the game, which are up for winning. At the end of April, new levels were released and with it new opportunities to win NFTs that will be distributed via a raffle through August 4, 2022.Screenshot of the iOS mobile app of Louis: The Game.Larva Labs deletes all of their tweetsIn a curious and quiet move, the Twitter account handled by the founders of Larva Labs (LL) reset its Tweet count to zero on May 2. Since Yuga Labs acquired Larva Labs collections CryptoPunks and Meebits in March, most Tweets concerning these collections have been moved to @cryptopunksnfts and @MeebitsNFTs accounts. However, LL founders, Matt and John, stated that they would continue posting on @LarvaLabs. The company continues to run various other Web3 projects under its belt, including Autoglyphs, as well as some mobile apps. We’ve changed our handle following the acquisition announcement. Follow along here for CryptoPunks updates, and keep up with Meebits over at @MeebitsNFTs. The projects’ founders, Matt & John, will keep posting as @larvalabs.— CryptoPunks (@cryptopunksnfts) March 22, 2022For fans nostalgic about the OG NFT collection, one user known as “@swissdegen” has backed up all of Larva Labs’ Tweets since 2017. Why? “For the culture,” he tweeted.Is Elon Musk embracing NFTs?Twitter’s new owner, Elon Musk, changed his Twitter profile picture (PFP) to a collage of Bored Ape Yacht Club NFTs for less than one day and caused quite a stir on Crypto Twitter. Musk’s profile photo also sent soaring the value of ApeCoin, Yuga Labs’ cryptocurrency. The image has since been deleted because Michael Bouhanna, a Sotheby’s executive, had originally created it for the Sotheby’s sale of the NFT and requested credit for it.@elonmusk as much I admire your work I’d like you to remove your pfp that I created for our Sotheby’s sale. Or you credit me . Happy to send you the original file minted with the buyer approval pic.twitter.com/e83ZyxWGH5— Michael Bouhanna (@michaelbouhanna) May 4, 2022

Users who traced some of the NFTs in the profile pic confirmed that Elon indeed has an impressive collection of Bored Apes, including three gold apes. The wallet also holds Doodles, Azuki and Moonbirds, all transferred from MoonPay’s vault. However, some of the Bored Apes in the PFP collage are not owned by Elon Musk, as user “@franklinisbored” pointed out, raising concerns of copyright breaches.VeeFriends partners with Johnnie WalkerScotch Whiskey Johnnie Walker and parent company DIAGEO partnered with Gary Vaynerchuk’s NFT project VeeFriends to provide holders of the Gift Goat VeeFriends NFTs with spirits-related offerings. Gift Goat is one of the 268 characters in the original VeeFriends collection. There are 555 Gift Goat tokens in total.All Gift Goat tokens will unlock 18 luxury gifting experiences curated by Gary Vaynerchuk over the course of three years. Each experience combines a bespoke physical gift with a unique NFT from a notable artist in the space. The Johnnie Walker collaboration will also set up an activation at the upcoming VeeCon NFT-ticketed conference. Source: VaynerNFTOther Nifty NewsTwo weeks after Coinbase launched the beta version of its NFT marketplace, the crypto exchange opened it up for everyone on Wednesday. Coinbase clarified on Twitter that having an open beta means that more features will continuously be added, but with the help of the public.The last week of April saw a sudden surge in the demand for 3- and 4-digit Ethereum Name Service, or ENS, domain names, marking a trend of NFT investors who prefer a shorter NFT token ID. Coinciding with new registrations was a sharp price increase for ENS token. Additionally, secondary sales for ENS names on OpenSea reached a peak 446 Ether (ETH) worth of volume in the last week. 

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Coinbase's plans to purchase firm behind Mercado Bitcoin fall through: Report

Coinbase and Brazilian company 2TM, the parent company of Mercado Bitcoin, have reportedly scrapped talks around the crypto exchange purchasing the firm.According to a Tuesday Bloomberg report, 2TM and Coinbase have ended discussions around the United States-based crypto exchange buying the Brazilian company, which was valued at more than $2 billion. It’s unclear what led to the purchase not going through, as 2TM reportedly declined to comment and a Coinbase spokesperson said it was simply “committed to the Brazilian market.”Coinbase and 2TM scrapped talks over a possible purchase by the exchange of the Brazilian cryptocurrency brokerage https://t.co/HmZxDj7Koi— Bloomberg Crypto (@crypto) May 4, 2022As the parent company of Mercado Bitcoin — one of the largest crypto brokerage firms in Latin America — 2TM cemented its unicorn status in July 2021 following a $200 million funding round, pushing the company ahead of a $2 billion valuation. Cointelegraph reported in March that 2TM was valued at $2.2 billion ahead of Coinbase’s reported plans to purchase the firm. In addition, 2TM acquired a controlling stake in Lisbon-based crypto exchange CriptoLoja in January.A Coinbase institutional investor report on Latin America from December 2021 suggested interest in expanding operations in Brazil. In April, Brazil’s Senate approved a law to regulate cryptocurrencies in the country, expected to be signed into law by President Jair Bolsonaro by the end of 2022. Rio de Janeiro, the second-most populous city in Brazil, also announced in March it will accept Bitcoin (BTC) payments for taxes related to urban real estate within city limits starting in 2023. Related: Cointelegraph’s Brazilian version unveils top 10 people in crypto and blockchainOne of the largest crypto exchanges in the United States, Coinbase has reportedly been making offers to purchase other crypto and blockchain firms across the globe. In January 2021, Coinbase announced the acquisition of blockchain infrastructure platform Bison Trails as well as the Routefire platform for enhanced trade execution. In April, Cointelegraph reported the exchange was planning to buy major Turkey-based crypto firm BtcTurk for $3.2 billion.Cointelegraph reached out to 2TM, but did not receive a response at the time of publication.

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Ethereum eyes mini breakout above $3K as Coinbase ETH outflows hit new record

Ethereum’s native token Ether (ETH) is poised for a mini bull run above $3,000 primarily due to a classic bullish reversal pattern on its shorter-timeframe chart, and a huge spike in ETH outflows from Coinbase.ETH price forming falling wedgeETH’s price has been forming a falling wedge pattern since late March 2022, which raises its prospects of undergoing a breakout move in May.Falling wedges appear when the price trends lower inside a range defined by two descending, contracting trendlines. As a rule of technical analysis, these wedges resolve after the price breaks out of their range to the upside and rises to a level at length equal to the maximum distance between the pattern’s upper and lower trendline when measured from the breakout point.ETH/USD daily price chart featuring falling wedge setup. Source: TradingViewThe maximum falling wedge height is around $395. Suppose ETH’s price closes above $2,850, the potential breakout point, accompanied by an increase in trading volume, its likelihood of rising by another $395 (toward $3,150) will be higher.Coinbase ETH outflows hit all-time highThe interim upside outlook in the Ether market coincides with bullish on-chain data.Notably, the number of ETH leaving Coinbase, the second-largest crypto exchange by volume, reached its highest level on May 3, data from CryptoQuant shows.$ETH Coinbase Outflow hits an all-time-highLive Chart https://t.co/PiITw2ZFf3 pic.twitter.com/tlFQndUhvQ— CryptoQuant.com (@cryptoquant_com) May 4, 2022Simultaneously, the ETH balance on all the crypto exchanges fell on May 3 to its lowest level since August 2018, according to one of Glassnode’s on-chain metrics.Ethereum balance on exchanges. Source: GlassnodeBoth indicators imply a surge in traders’ preference to hold Ethereum tokens over trading them for other assets. They also coincide with a recent recovery in the upside sentiment of small Ether traders, namely an increase in the number of addresses that have a minimum balance of 0.1 ETH, 1 ETH and 10 ETH.Ethereum number of addresses with balance ≥ 0.1 ETH, 1 ETH, and 10 ETH. Source: GlassnodeThe Ethereum balances tick higher across the retail addresses as Ether’s price trends lower, indicating that traders have been buying ETH at local lows. That further supports the falling wedge’s bullish reversal setup.Bearish long-term prospectsEther’s likelihood of crossing the $3,000-level has not plucked it out of its prevailing, long-term bearish setup, however. As Cointelegraph covered earlier, ETH risks breaking below its ascending triangle range in Q2/2022 with its downside target sitting anywhere between $1,820 and around $2,670, depending on the breakout point.ETH/USD daily price chart featuring ‘ascending triangle’ setup. Source: TradingViewAdditional downside cues come from macro fronts, with Ethereum — like its top rival Bitcoin (BTC) — still holding its positive correlation with U.S. stocks in a sign that it would tail the traditional markets downward due to a common factor: a hawkish Federal Reserve. ETH/USD and S&P500 correlation coefficient. Source: TradingViewThe U.S. central bank will release a policy statement on May 4 at 2 pm EST, followed by chairman Jerome Powell’s press conference at 2:30 pm EST. Officials have signaled that they would increase benchmark rates by 0.5% and approve plans to unwind their $9-trillion asset portfolio.Related: Smart money is accumulating ETH even as traders warn of a drop to $2.4KResearchers from Strategas Research Partners and Morgan Stanley anticipate that the U.S. benchmark index, the S&P 500, will decline by another 15-16% into 2022, reports Bloomberg. As a result of its consistent positive correlation, ETH also faces similar downside prospects this year.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Coinbase CEO responds to insider trading allegations with changes for token listings

After some crypto sleuths made allegations of insider trading by individuals potentially connected to Coinbase, CEO Brian Armstrong said the crypto exchange would change some of its token listing practices.In a Thursday blog post, Armstrong did not confirm whether any Coinbase employees had received disciplinary action or been referred for criminal charges in response to allegedly receiving insider information used to profit off certain token listings. According to the CEO, Coinbase planned to change its listing process over the next few quarters “to try and prevent on-chain data giving signal to watchful traders,” to allow users to rate and review assets and invest more in forensic tools.“There is always the possibility that someone inside Coinbase could, wittingly or unwittingly, leak information to outsiders engaging in illegal activity,” said the Coinbase CEO. “We have zero tolerance for this and monitor for it, conducting investigations where appropriate with outside law firms […] If these investigations find that any Coinbase employee somehow aided or abetted any nefarious activity, those employees are immediately terminated and referred to relevant authorities (potentially for criminal prosecution).”According to Armstrong, employees are limited to trading crypto on Coinbase’s platforms by its company policies to monitor transactions and “stay ahead of possible abuse.” However, Cointelegraph reported in April that some online sleuths alleged certain investors had insider knowledge of which tokens Coinbase was considering listing in the second quarter of 2022 based on blockchain records of purchases prior to the exchange releasing that information.Found an ETH address that bought hundreds of thousands of dollars of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was published, rofl pic.twitter.com/5QlVTjl0Jp— Cobie (@cobie) April 12, 2022The Coinbase CEO said “some market participants” might have been able to take advantage of its listing process by using on-chain data to monitor the exchange testing asset integrations as well as detecting small differences in the platform’s application programming interface, or API, responses. He added that the exchange wouldn’t “catch everything,” but would aim to work with other crypto firms and respond to feedback to adjust policies as needed.“While this is public data, it isn’t data that all customers can easily access, so we strive to remove these information asymmetries,” said Armstrong. “We review assets as quickly as possible, and list everything we can — as long as we believe it’s safe and legal.”Related: Coinbase insiders dump nearly $5 billion in COIN stock shortly after listingA Coinbase listing can often result in a sudden price surge for a crypto project due to the size and popularity of the exchange. In May 2020, the price of OMG Network’s token OmiseGo surged 200% within 15 minutes of being listed on Coinbase before crashing. Morpheus Labs (MITX), Kromatika (KROM) and Big Data Protocol (BDP) — all tokens Coinbase named as being under consideration for listings — showed gains of 185%, 145%, and 204%, respectively, shortly following the exchange’s announcement in April 202.

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