Author: Staff Writer
As cities like Austin, Miami, and New York City have launched – or are planning to launch – cryptocurrencies, the interest and activity in this space has rapidly advanced. Such high profile examples certainly generate quite a bit of buzz surrounding these cryptoassets, but the pace at which these cryptoassets have developed can also lead to some confusion. Different cities and examples are going to operate uniquely, but there are a few core considerations that investors, regulators, and users of these cryptoassets should keep in mind. Especially given the dramatic increase in institutional interest and investment in an array of…
A flash weekend bitcoin crash that wiped out a fifth of its value and caused $2 billion worth of positions to be liquidated has soured investor expectations of a massive run-up in the world’s largest cryptocurrency into the year-end. Cryptocurrency analysts were not quite sure what triggered the heavy selling, but pointed to the a plunge in margin borrowing, in fresh futures positions and to activity by large holders of bitcoin as evidence of mass liquidation. Bitcoin fell as far as $41,967.5, levels that made it 40% cheaper than the Nov. 10 record of $69,000. By Monday, it was back…
Decentralised finance catering for cryptoassets could undermine financial stability if it gained traction and more safeguards are needed, the Bank for International Settlements said in its quarterly review on Monday. So-called DeFi platforms allow users to lend, borrow and save, usually in cryptoassets and stablecoins, while bypassing traditional, centralised gatekeepers of finance such as banks. DeFi has the potential to complement traditional financial activities, but it currently has few real-economy uses and, for the most part, supports speculation and arbitrage across multiple cryptoassets, the BIS said in its quarterly review. The limited application of anti-money laundering rules and customer checks,…
A brutal bout of selling that wiped billions of dollars from profitless growth companies, IPO stocks and SPACs has now caught up with Bitcoin, further stressing risk tolerances and brokerage balances among small-time traders. Retail dip-buyers, whose willingness to stand firm amid turmoil has helped power the S&P 500 to a 21% gain in 2021, are nursing some of their worst wounds of the year as losses pile up in speculative corners. A hawkish turn from the Federal Reserve and the omicron variant have erased more than 10% off the market value of cryptocurrencies, $50 billion from newly public companies…
Bitcoin hovered around $49,000 on Monday, down 1.5% on the day, as traders nursed losses after a brutal weekend in which the price of the world’s largest digital asset at one point lost over one fifth of its value. The rout sent bitcoin’s price and the amount invested in bitcoin futures back to where they were in early October, before the massive price surge that sent the token to its all time high of $69,000 on Nov. 10. “Our expectation is the rest of Q4 will be a hard month; we aren’t seeing the strength in bitcoin that we generally…
Brian Armstrong, co-founder and chief executive of Coinbase, said he is bullish on the crypto exchange’s institutional business which has been growing really well. Armstrong was interviewed by Fred Wilson, partner of Union Square Ventures and lead independent director of Coinbase, at the JP Morgan Crypto Economy Forum on 30 November. Armstrong said: “Our institutional business has been growing really well which I’m happy about.” Coinbase initially addressed the institutional market by offering custody for crypto assets and then launched prime brokerage in the middle of the third quarter of this year. Coinbase Prime combines advanced trading, custody, analytics, and…
The market for non-fungible tokens, or NFTs The market for non-fungible tokens, or NFTs, is soaring, reaching $10.7bn in the third quarter of 2021. For the art world it’s a new frontier, where ownership of digital assets is encrypted on the blockchain. The FT talks to artists, auction houses and collectors about how NFTs are bringing in new buyers and setting records for sales of digital works, and we follow a painter making his first NFT.
Cryptocurrencies survived one of the largest market shocks since the earliest days of the pandemic last week, with El Salvador a notable dip buyer, while investors decided not to share Adidas’ excitement over a foray into the buzzy metaverse. El Salvador’s plans to build the world’s first “Bitcoin City” and Adidas’s entry were the bright spots for digital assets in a week that saw major cryptocurrencies clobbered by fears over the new coronavirus variant Omicron. Bitcoin was down 0.5% on Monday and has lost about 17% of its value from a record $69,000 over the past 19 days. But rival currency ether…
Twitter Inc Chief Executive Officer Jack Dorsey will step down from his role and a successor has been lined up, a person familiar with the matter told Reuters. The company’s board has been preparing for Dorsey’s departure since last year, the source said. The news comes as Twitter has accelerated the pace of its product innovation over the past year to compete with social media rivals such as Facebook Inc and TikTok, and to reach its goal of doubling annual revenue by 2023. Twitter was not immediately available for comment. Shares of the microblogging platform surged 9% in early trading, while those…
Former Citigroup Inc. executive Matt Zhang is launching a $1.5 billion venture focused on cryptocurrency-related investments and has hired Sam Peurifoy — an ex-Goldman Sachs analyst known for his online gaming persona “Das Kapitalist” — to lead a dedicated “play-to-earn” strategy. The New York-based investment firm, named Hivemind Capital Partners, has received “a decent amount of interest” from qualified institutional investors including pensions, endowments, sovereign wealth funds and family offices, Zhang, founder and managing partner, said in an interview. Hivemind expects to add another four to five partners in the next six to 12 months. Hivemind, a name inspired by…