Crypto

Crypto pledged to dethrone Wall Street. It’s getting swallowed instead.

Published

12 months ago

July 8, 2023

Crypto pledged to dethrone Wall Street. It’s getting swallowed instead.

Wall Street heavyweights are changing their tune on crypto.

Take BlackRock CEO Larry Fink, who in 2017 dismissed bitcoin as “an index of money laundering.” Last week, the chief of the world’s largest asset manager gave a starkly different appraisal of the most popular cryptocurrency, saying it is “digitizing gold” and could “revolutionize finance.”

Then there’s fellow billionaire financier Ken Griffin, who blasted the sector as a “jihadist call” against the dollar two years ago. Now, his hedge fund, Citadel Securities, is backing a recently launched platform that allows institutional investors to trade the digital assets.

Fidelity Investments, the nation’s largest 401(k) administrator, is another example. The 77-year-old financial stalwart is nobody’s idea of an anti-establishment renegade. Yet it, too, is moving on several fronts to get into crypto. It started allowing workers to invest a portion of their retirement savings in bitcoin last year. Its subsidiary Fidelity Digital Assets joined Citadel — and Charles Schwab — in investing in the new crypto exchange, called EDX. And like BlackRock, it is seeking approval from the Securities and Exchange Commission to introduce a publicly listed fund that will track the real-time price of bitcoin.

The cryptocurrency industry built a cultlike fan base in the United States by promising to break Wall Street and Washington’s joint grip on the financial system. But as the sector weathers a steep decline and faces tough new scrutiny from the SEC, some of Wall Street’s biggest names are trying to enfold it.

The developments place the industry at crossroads in the United States. Popular interest in crypto has cratered after a year of spectacular meltdowns left a trail of bankrupt crypto companies, criminally charged entrepreneurs, shamed celebrity endorsers and ravaged investors. With the hype deflated, financial giants sense an opportunity for profit by offering their customers a pared-back menu of crypto products and services unlikely to raise hackles from regulators.

Whether crypto’s founding ambition to democratize finance survives remains an open question.

“Assets often move from weak hands to strong hands during bear markets,” said Matthew Sigel, the head of digital assets research at fund manager VanEck. “We think that’s what is happening in crypto. A lot of losses last year were taken by retail or immature players, and now here come the big boys” of traditional finance.

Those firms can pick up where collapsed crypto companies left off, said Tyler Gellasch, president and CEO of the investor advocacy organization Healthy Markets.

“While many crypto firms built their businesses around not complying with the law, traditional finance firms have already mastered making money trading an asset or operating an exchange while also complying with securities laws,” he explained. “The SEC might appreciate that, and certainly serious institutional and individual investors would.”

Fidelity declined to comment. But Jamil Nazarali — the CEO of EDX, the crypto trading platform for institutional investors that the firm is backing — said that “more firms are coming” even while some in the financial establishment wait for more regulatory clarity before jumping in.

For some financiers, the development marks an inevitable reckoning for a sector that at its late 2021 peak had grown into a $3 trillion juggernaut seemingly overnight while flouting decades of investor protection laws.

“More and more people are coming to the realization that, like it or not, cryptocurrencies are here to stay, and the current environment and market structure for cryptos lacks a lot of the protections that we have come to take for granted in traditional finance,” said Nazarali, who left Citadel last year to launch EDX.

Those protections were at best an afterthought for venture capitalists, entrepreneurs and everyday traders who jumped into crypto as it started a rocket-like ascent two years ago. Americans stuck at home during the coronavirus pandemic and suddenly flush with stimulus checks opened up a vast new pool of money for an industry that had long been the preserve of a hardcore fringe.

Social media tales of instant riches minted seemingly out of thin air on new crypto tokens helped fuel a viral craze, as millions of Americans flocked to platforms like Coinbase that made it easy to open an account and start trading from a smartphone. At its peak in November 2021, the value of the overall crypto market had quadrupled since the start of that year. The industry became a pop-culture phenomenon, with trading platforms Crypto.com and FTX shelling out tens of millions of dollars to affix their names to major sports arenas and crypto ads dominating the Super Bowl broadcast in early 2022.

Then, even faster than the crypto bubble inflated, it popped. The implosion in May 2022 of a digital coin called TerraUSD set off a chain reaction that toppled three other major crypto companies in the ensuing weeks, pummeling investor confidence and cutting the value of the overall market roughly in half. The already devastated sector was dealt another punishing blow in November, when FTX — one of the world’s largest crypto exchanges that had billed itself as a responsible operator — collapsed and led to allegations that its executives fraudulently misappropriated customer funds on risky investments and personal expenses.

Bitcoin has staged a major comeback this year, nearly doubling in price. It rallied strongly in March as midsize bank failures shook confidence in the banking system and has been surging again in recent weeks on news of the institutional appetite for the asset.

The SEC — whose chairman, Gary Gensler, long has accused crypto companies of operating illegally — effectively rang a closing bell on crypto’s Wild West era last month. The agency took its most aggressive steps yet toward cracking down on the sector when it sued Binance and Coinbase, two of the largest crypto trading platforms, on successive days. It charged both with violating securities laws meant to shield against conflicts of interest and provide basic disclosures to investors.

The SEC’s one-two punch against companies with starkly divergent approaches to regulatory compliance signaled its aggressive new push to police the industry. Binance, which operates offshore, still faces criminal probes from U.S. authorities; the U.S.-based Coinbase, by contrast, is publicly traded and has styled itself as a safe option for everyday investors.

“We knew something was coming, but we didn’t expect it to be so expansive,” Blockchain Association CEO Kristen Smith said. She pointed to the SEC’s decision in the Coinbase suit to argue that 13 crypto tokens listed on the platform qualify as securities, a designation subjecting them to the agency’s oversight.

As Washington and Wall Street move in on crypto, tech-focused investors in San Francisco are moving on. In bars and restaurants, conversations about artificial intelligence have replaced the breathless talk about crypto. Venture capitalists who fashioned themselves as crypto devotees have now pivoted to AI. Tech influencers on social media who implored people to buy cryptocurrency are now posting about the wonders of ChatGPT and other AI tools.

Young people are moving to San Francisco to join “hacker houses” and go to parties focused on AI, sweeping aside the gold rush into crypto that had brought previous waves of people to the city looking for investors and co-founders.

Meanwhile, the massive amounts of money that poured into crypto start-ups from venture capital firms has slowed to a trickle. In 2021, there were 794 venture capital investments made into crypto companies, totaling $18.1 billion in investment, according to research firm PitchBook. In 2022, the industry kept growing, seeing 831 deals worth $22.8 billion. But this year, the pace of investment has fallen off a cliff. Halfway through the year, there have been only 105 venture investments, and $2 billion invested.

Crypto traders have also scaled back their activity. In May, the five largest U.S. platforms hosted a total of $56 billion worth of crypto trades, the lowest such volume since October 2020, according to Riyad Carey, a research analyst at crypto data firm Kaiko.

Idling interest has taken a toll on Coinbase, for one, which in May reported that it lost $79 million in the first three months of the year, its fifth consecutive quarterly loss. Nonetheless, the company’s stock has rallied in recent weeks, in part on the news that BlackRock named it as a partner for its bitcoin fund.

Dan Dolev, a Mizuho Securities analyst, said Coinbase still has little to celebrate in the face of the SEC’s lawsuit. “I wouldn’t bet against the regulators,” he said. As he sees it, the company should embrace the inevitable and adopt a narrower — and less profitable — business model.

Even though Coinbase has said it will continue to operate its business “as usual” while the legal process plays out, “they’re like Wile E. Coyote after he’s run off the cliff but before he realizes it,” Dolev said. “That’s exactly what’s happening.”

Gerrit De Vynck contributed to this report.

Crypto

Cryptocurrency Software Market : Opportunity Analysis and Industry Forecast, 2023-2032

Published

1 hour ago

July 3, 2024

Press Room

Cryptocurrency Software Market : Opportunity Analysis and Industry Forecast, 2023-2032

According to the report published by Allied Market Research, Cryptocurrency Software Market : Opportunity Analysis and Industry Forecast, 2023-2032. The report provides an extensive analysis of changing market dynamics, major segments, value chain, competitive scenario, and regional landscape. This research offers valuable able guidance to leading players, investors, shareholders, and startups in devising strategies for sustainable growth and gaining a competitive edge in the market.

Download Sample Report at: https://www.alliedmarketresearch.com/request-toc-and-sample/A114857

The cryptocurrency software market encompasses all software products and services related to cryptocurrencies. This includes platforms for trading, investing, managing, and securing cryptocurrencies, as well as software for blockchain development, wallet management, mining, and compliance. Key participants in this market include cryptocurrency exchanges, wallet providers, blockchain development platforms, and companies offering security solutions for cryptocurrencies.

The cryptocurrency software market is segmented on the basis of types , application and region.

By Types

● Cloud Based

● Web Based

By Applications

● Large Enterprises

● SMEs

If you have any questions, Please feel free to contact our analyst at: https://www.alliedmarketresearch.com/connect-to-analyst/A114857

By Region

● North America (U.S., Canada, Mexico)

● Europe (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)

● Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)

● LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)

Key Companies identified in the report are Poloniex, Bitfinex, Kraken, BTCC, Bittrex, Kucoin, LocalBitcoins, Electroneum, Binance, Coinbase, Cryptopia.

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Market Trends are :

DeFi and Decentralized Applications (dApps) Growth:

DeFi Expansion: Decentralized Finance (DeFi) is transforming traditional financial systems by providing decentralized alternatives to banking, lending, and trading services. DeFi platforms utilize smart contracts on blockchain networks, offering users greater control over their assets and reduced reliance on traditional financial intermediaries.

dApps Proliferation: Decentralized applications (dApps) are gaining traction in various sectors, from gaming and social media to supply chain management and real estate. These applications operate on blockchain networks, ensuring transparency, security, and user autonomy.

Increased Focus on Regulatory Compliance and Security:

Regulatory Compliance: With growing governmental scrutiny, cryptocurrency software providers are increasingly focusing on compliance with regulations such as anti-money laundering (AML) and know your customer (KYC) requirements. This trend is driven by the need to build trust and legitimacy in the eyes of regulators and users alike.

Enhanced Security Measures: Security remains a critical concern in the cryptocurrency space due to frequent incidents of hacking and fraud. As a result, there is a heightened emphasis on developing and integrating advanced security features, such as multi-signature wallets, hardware wallets, and biometric authentication, to protect users’ assets and data.

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Thanks for reading this article you can also get individual chapter-wise sections or region-wise report versions like North America Europe or Asia.

If you have any special requirements, please let us know and we will offer you the report as per your requirements.

Lastly this report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Crypto

Man Invests $10,000 in Cryptocurrency, Earns $3 Million in 30 Minutes

Published

8 hours ago

July 3, 2024

Press Room

Man Invests $10,000 in Cryptocurrency, Earns $3 Million in 30 Minutes

In what can be called the greatest trade of 2024, a cryptocurrency investor put in $10,000 and earned $3 million. The trade was completed in just 30 minutes making the investor turn into a millionaire in the shortest period possible. This is what dreams are made of and the investor turned the dream into reality this month.

Also Read: Which Cryptocurrency Could GTA 6 Integrate in the Game?

Cryptocurrency Investor Turns $10,000 Into $3 Million in Just 30 Minutes

So how did the investor turn $10,000 into $3 million in 30 minutes? Well, the investor took an entry position into BAKED cryptocurrency on July 1, 2024, purchasing 70 Solana (SOL) for under $10,000. The investor swapped the Solana tokens to BAKED and accumulated 82 million tokens.

Also Read: BRICS: Saudi Arabia Makes Massive Oil and Gas Discovery

Just 30 minutes after buying BAKED cryptocurrency, an investor sold it for 21,581 Solana (SOL). This means that the investor made $3 million in the cryptocurrency in less than an hour after purchasing it. Leading on-chain metrics firm Lookonchain was the first to dish out the transaction on the blockchain.

Someone sniped $BAKED and made 21,511 $SOL($3M) in just 30 minutes, a gain of 307x!
How did he do it?
Advertisement

We also found that the team and insiders control 763.8M $BAKED(76.38% of the total supply).
1/ Here is a thread.🧵 pic.twitter.com/KQ16KYGl7t
— Lookonchain (@lookonchain) July 1, 2024

Also Read: Data Breach: US Bank Exposes Customers Name, Acc Number, Date of Birth

However, doubts arise if the investor is an insider or a genuine trader who just got lucky. Investors use the cryptocurrency ‘snipping’ method and buy tokens just hours before it gets listed and open for trading. This gives them the leverage of being a step ahead before other investors begin to purchase the tokens. BAKED saw a listing on the Bitget platform opening the floodgates to new investors.

There are several other stories where cryptocurrency investors just got lucky and made millions in a short period. While these stories are promising, there are only a handful of them that actually made it. The majority of holders have lost money in the markets and only dream of making it big. Luck favors a few while the others mostly face the wrath of the broader cryptocurrency market.

Crypto

Cryptocurrency Titans Bitcoin and Ethereum Poised for Robust July Based on Historical Patterns

Published

16 hours ago

July 2, 2024

Press Room

Cryptocurrency Titans Bitcoin and Ethereum Poised for Robust July Based on Historical Patterns

As tradition guides us in the financial world, history often sheds light on what might be forthcoming. In this context, July has consistently proven to be a favorable juncture for the titans of the cryptocurrency market, Bitcoin and Ethereum. As we gingerly step into July, market experts are observing with keen interest, the patterns of the past, hoping for another lucrative period in the digital currency realm.

Time-honored market pundits from QCP Capital have deduced that over the years, Bitcoin has shown a median yield of 9.6% in July, bearing a consistent pattern of recuperating substantially after a rather lethargic performance in June. This year, following a dip of roughly 10% in its June performance, Bitcoin is set to possibly see an uplift this July, guided by these historical pointers.

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Adding more colors of positivity to this promising picture, David Duong and David Han, two-discerning analysts from Coinbase, have affirmed this trend. They reckon that the expected bonanza of liquidity in July could provide an additional springboard to the market.

June’s downturns have purged the financial market of excess, potentially smoothing the path ahead for more secure and optimistic price shifts. Furthermore, Bitcoin and Ethereum’s trading volumes, which include spot and futures transactions on global exchanges, dwindled from $90 billion in May to $75 billion in June. Market watchers perceive this constriction in trade volumes as laying a sturdier groundwork for the next surge of market activity.

The favorable July seasonality has not been exclusive to leading cryptocurrencies but is also buttressed by broader market dynamics. Analysts including the likes of Ali underscore that recovery patterns ensuing June’s lapses historically denote a “vigorous bounce back” in July performances.

This observation holds notably true for Bitcoin, which has consistently delivered an average return of approximately 8% during this period.

The recent technical analysis of Bitcoin’s price fluctuations also provides credence to the hypothesis for a bullish July. Bitcoin noted a significant upsurge of 2.7% in just the past 24 hours. Now trading at $63,104, Bitcoin has started the month on a strong note. This recent rise has nudged its weekly gains also to 2.7%, echoing an uptick in investor confidence.

However, predictions are not without their hurdles. Factors including macroeconomic influences and regulatory advancements could still steer cryptocurrency prices in a direction contrary to expectations. And while analysts maintain an optimistic outlook based on statistical and historical evidence, the characteristic volatility of the cryptocurrency markets implies that significant deviations from past trends can still transpire.