Category: Cryptocurrency

This post was originally published on this site

Coinbase announced a remarkable first quarter, with revenue reaching $1.6 billion, marking a substantial 72% increase from the previous quarter and a significant rise from $736 million in the same period last year. The company also reported a notable swing in net income, posting $1.18 billion for the quarter compared to a loss of $79 million in the previous year’s corresponding period. Additionally, Coinbase generated $1.01 billion in EBITDA, surpassing expectations with earnings of $4.04 per share, exceeding the consensus estimate of $1.15 per share.

The surge in revenue reflects Coinbase’s strategic investments in product expansion, operational discipline, and favorable market conditions, according to the company’s earnings statement. Notably, the company observed increased market share in US spot and derivatives, achieving all-time highs on Coinbase Prime, and witnessing growth in USDC market capitalization.

Transaction revenue for both consumer and institutional clients experienced a substantial uptick, totaling $1.08 billion for the quarter. Institutional transaction revenue notably grew by 113% from the previous quarter to $85 million. Coinbase’s consumer-facing business remained its primary revenue stream, generating $935.2 million from consumer transactions. The company also reported growth in user numbers alongside revenues collected from its subscription service.

Looking ahead, Coinbase anticipates continued growth, stating that it generated over $300 million of total transaction revenue in April, with expectations for Q2 subscription and services revenue to fall within a range of $525-$600 million.

Despite surging nearly 9% in regular trading, Coinbase shares dipped about 3% in after-hours trading to $222 as of 4:32 p.m. ET. Nonetheless, Coinbase shares have seen a remarkable increase of nearly 50% over the past year.

Featured Image: Megapixl

Please See Disclaimer

This post was originally published on this site

Tether announced on Thursday its collaboration with blockchain surveillance firm Chainalysis to monitor transactions involving its tokens on secondary markets. The move aims to enhance Tether’s ability to identify and address potential risks associated with illicit activities such as terrorist financing and sanctions evasion.

The monitoring system, which includes capabilities for international sanctions compliance and detection of illicit transfers, will enable Tether to identify crypto wallets that may pose risks or be linked to illicit and/or sanctioned addresses. Tether CEO Paolo Ardoino emphasized the significance of this collaboration in promoting transparency and security within the cryptocurrency industry.

This partnership comes amidst growing regulatory pressure on Tether globally, with concerns raised about USDT’s purported role in circumventing international sanctions and facilitating illicit finance. Reports have surfaced of Venezuela’s state-run oil company using USDT to bypass U.S. sanctions, while a United Nations report highlighted the stablecoin’s involvement in underground banking and money laundering in East Asia and Southeast Asia.

USDT, with a circulating supply exceeding $110 billion, maintains a peg to the US dollar and is primarily backed by U.S. Treasury bonds held in reserve, managed by Cantor Fitzgerald. Tether recently reported first-quarter earnings of $4.52 billion, underscoring its prominence in the cryptocurrency market despite regulatory challenges.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

LayerZero has taken a snapshot as it gears up for its anticipated airdrop, scheduled for the first half of 2024. A snapshot typically precedes outflows as investors participating in airdrops often redistribute liquidity to other projects.

Developers of the cross-chain interoperability protocol hinted at additional airdrops in the pipeline, signaling ongoing developments within the ecosystem. The recent snapshot, labeled as “snapshot #1,” marks the first step in a series of planned airdrops.

LayerZero stands out as a protocol facilitating blockchain connectivity without relying on intermediaries. Currently utilized by platforms like Stargate and Radiant Capital, both experienced modest token gains following the confirmation of the snapshot.

In April, LayerZero secured $120 million in a Series B funding round, valuing the company at $3 billion. Notable investors in the round included Andreessen Horowitz and Sequoia Capital, indicating strong support for LayerZero’s vision.

As snapshots pave the way for potential outflows, investors utilizing protocols for airdrop allocations can strategically allocate liquidity to maximize their participation in various projects. Recent data from DefiLlama indicates a net outflow of $5 million from the Stargate bridge in the last 24 hours, with $43 million deposited and $48 million withdrawn.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Robert Mitchnick, BlackRock’s(NYSE:BLK) head of digital assets, revealed that financial institutions are engaging in diligence and research discussions, with BlackRock providing educational support. BlackRock has been actively discussing bitcoin with these institutions for several years.

Despite the recent break in inflows into spot bitcoin exchange-traded funds, BlackRock anticipates a resurgence driven by a new wave of investors, including sovereign wealth funds, pension funds, and endowments. Mitchnick highlighted the renewed interest in bitcoin and the ongoing discussions surrounding portfolio allocation strategies.

Mitchnick emphasized that various institutions, including pensions, endowments, sovereign wealth funds, insurers, asset managers, and family offices, are conducting continuous due diligence and research. BlackRock’s role is to facilitate education in navigating the complexities of bitcoin investment.

While attention has been drawn to the assets under management  race between BlackRock’s IBIT ETF and Grayscale’s GBTC, Mitchnick stressed that BlackRock’s focus lies on client education rather than size competition. Despite IBIT’s impressive AUM of $17.2 billion compared to GBTC’s $24.3 billion, BlackRock prioritizes client understanding and adoption.

BlackRock’s interest extends beyond bitcoin, as evidenced by its filing for an ether ETF. Mitchnick highlighted the potential benefits of digital assets across cryptoassets, stablecoins, and tokenization. While acknowledging the complexity of the Ethereum blockchain ecosystem, BlackRock remains committed to educating clients on the broader implications and opportunities within the digital asset space.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

MicroStrategy, known as the largest corporate holder of bitcoin, has announced its intention to develop a decentralized identity service utilizing Ordinals inscriptions.

Earlier this year, the software consulting firm rebranded itself as a “bitcoin development company,” emphasizing its commitment to advancing the Bitcoin network through various means such as financial markets, advocacy, and innovation. The unveiling of “MicroStrategy Orange” signifies the company’s dedication to realizing this objective.

MicroStrategy Orange aims to offer decentralized identities that are “trustless, tamper-proof, and long-lived,” according to founder Michael Saylor. The service will enable users to issue decentralized identifiers (DIDs), ensuring pseudonymity similar to bitcoin transactions, which are not directly linked to real-world identities.

Leveraging Bitcoin’s Ordinals Protocol, MicroStrategy Orange enables the storage and communication of information on individual satoshis, the smallest unit of bitcoin.

MicroStrategy has already developed an application called “Orange For Outlook” using its decentralized identity service. This application integrates digital signatures into emails, allowing recipients to verify the identity of the sender securely.

Currently, MicroStrategy holds a substantial amount of bitcoin, totaling 214,400 BTC, which amounts to approximately $10 billion. This constitutes more than 1% of the total bitcoin supply that will ever exist.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

MoonPay, a popular cryptocurrency purchasing app, has forged a partnership with financial services behemoth PayPal to offer American users a streamlined method for buying cryptocurrencies using their PayPal accounts.

This collaboration aims to streamline the process of purchasing cryptocurrencies for millions of Americans. It enables users to conduct wallet transfers, bank transfers, and debit card transactions directly within the MoonPay app, as reported by Coindesk.

The integration represents a strategic expansion for PayPal, which currently provides a limited range of major cryptocurrencies. Through MoonPay’s infrastructure, PayPal users gain access to a broader array of popular tokens.

Ivan Soto-Wright, the co-founder and CEO of MoonPay, described the partnership as “symbiotic,” emphasizing its benefits for both MoonPay users and PayPal’s cryptocurrency offerings.

“This is not merely an integration; it involves embedding PayPal within MoonPay’s framework,” Soto-Wright explained.

He underscored the significance of this collaboration, highlighting the extensive process required to align with PayPal’s operational standards.

“We are the first company to achieve this with PayPal, and it involved a lengthy process to gain their confidence,” he added.

MoonPay, which handles billions of dollars in cryptocurrency transactions via debit and credit cards, views this partnership as a crucial advancement in reaching a broader customer base. It particularly benefits users who may have encountered banking restrictions or card declines when attempting to purchase cryptocurrencies.

As digital assets gain momentum, such collaborations become increasingly pivotal. They not only enhance the user experience by offering more flexible payment options but also signify the growing acceptance of cryptocurrencies within mainstream financial services.

Featured Image: Megapixl

Please See Disclaimer

This post was originally published on this site

JPMorgan, a prominent financial institution on Wall Street, maintains a cautious outlook on cryptocurrency markets in the short term due to several factors, including the fading retail impulse and the absence of positive catalysts.

According to the bank’s analysis, retail investors were significant contributors to the recent sell-off in both crypto and equity assets during April. Moreover, spot bitcoin exchange-traded funds (ETFs) experienced outflows, indicating a decline in retail interest. The bank identifies three main challenges persisting in the market: high positioning levels, elevated bitcoin prices compared to gold and production costs, and subdued crypto venture capital (VC) funding.

The recent profit-taking in cryptocurrency markets has been notably driven by retail investors, overshadowing the involvement of institutional investors. Bitcoin, for instance, witnessed a 16% decline in April, marking its largest monthly drop since June 2022.

In a notable development, U.S.-based spot bitcoin ETFs recorded their highest-ever net outflows on Wednesday, totaling $563.7 million across 11 ETFs. This significant withdrawal occurred despite these funds only commencing trading on January 11.

JPMorgan’s analysis suggests that institutional investors, particularly momentum traders like commodity trading advisors (CTAs), have been capitalizing on previous extensive positions in bitcoin and gold. However, the reduction in positions by other institutional investors outside of quantitative funds and CTAs appears to be more limited, as indicated by futures market data.

In summary, while retail investors have played a prominent role in the recent crypto market sell-off, institutional investors, particularly momentum traders, have also been active in adjusting their positions. JPMorgan’s cautious stance reflects the ongoing challenges and uncertainties prevailing in the cryptocurrency landscape.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Two bipartisan lawmakers, Reps. Wiley Nickel, D-N.C., and Drew Ferguson, R-Ga., have introduced the Providing Tax Clarity for Digital Assets Act. The bill aims to clarify that staking rewards should only be taxed at the time of their sale to prevent double taxation.

Rep. Ferguson emphasized the need for clarity in the treatment of digital asset rewards, citing confusion among investors and businesses, as well as the risk of American businesses relocating overseas due to tax complexities. He highlighted that the bill would provide much-needed clarity, establish US leadership in digital asset tax treatment, and foster innovation and business within the country.

The bill comes in response to a ruling by the Internal Revenue Service last year, which stated that crypto investors earning rewards from staking services must include the value of those rewards in their gross income.

According to Coin Center, the bill proposes that taxes on block rewards from proof-of-work or proof-of-stake networks should only be applied when they are spent or sold, rather than when they are acquired. This approach aims to resolve major issues with current cryptocurrency taxation and ensure fair treatment of the technology.

The Proof of Stake Alliance echoed similar sentiments, describing the bill as a “common-sense clarification of existing law” that promotes tax fairness and compliance. The alliance emphasized that the bill would prevent double taxation by taxing block rewards only at the time of their sale or exchange.

Rep. Nickel, a supporter of crypto, has previously advocated for digital asset legislation and pushed for the advancement of the Financial Innovation and Technology Act. Both Rep. Nickel and Rep. Ferguson have announced their retirement and will not seek reelection.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Securitize, a leading player in RWA tokenization, has closed a significant $47 million funding round, with BlackRock spearheading the investment. This collaboration underscores the growing momentum and promise within the RWA tokenization landscape.

The investment round, announced on May 1, saw participation from key financial institutions including Hamilton Lane, ParaFi Capital, and Tradeweb Markets. The infusion of capital will enable Securitize to further its mission of harnessing blockchain technology to digitize capital markets, thereby simplifying processes and expanding accessibility.

Carlos Domingo, Co-Founder and CEO of Securitize, expressed gratitude for the support from esteemed investors, emphasizing the transformative potential of blockchain in reshaping finance and tokenization specifically.

BlackRock’s involvement marks a strategic move, particularly following their collaboration with Securitize on the BlackRock USD Institutional Digital Liquidity Fund. This partnership underscores BlackRock’s commitment to RWA tokenization, a process involving the digitization of real-world assets like equities and bonds for trading on a blockchain.

Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships, has been appointed to Securitize’s Board of Directors, signaling deeper collaboration and strategic alignment.

According to Chalom, BlackRock sees tokenization as a catalyst for significant transformation in capital markets infrastructure. The investment in Securitize reflects BlackRock’s commitment to driving innovation to meet the evolving needs of its clients.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Spot-Bitcoin exchange-traded funds (ETFs) are exhibiting signs of stress as the cryptocurrency market endures a downturn, with prices of major ETFs tracking Bitcoin witnessing significant discounts to their underlying asset values.

Following a roughly 5% decline in Bitcoin’s price, several leading ETFs recorded their largest discounts on the value of underlying assets in their short trading history on Tuesday. The trend persisted on Wednesday as Bitcoin continued to drop, experiencing a decline of up to 5.6%.

The $16 billion iShares Bitcoin Trust (IBIT) closed approximately 1.7% below its net asset value on Tuesday, marking the largest dislocation since its inception in January. Similarly, the $9 billion Fidelity Wise Origin Bitcoin Fund (FBTC) and the $2.5 billion ARK 21Shares Bitcoin ETF (ARKB) both saw discounts exceeding 1.4%, the highest on record for each ETF. The $2 billion Bitwise Bitcoin ETF (BITB) also closed with a notable discount.

James Seyffart, an ETF analyst at Bloomberg Intelligence, noted that while the discounts are significant, they are not unprecedented in the context of ETF trading dynamics. However, the deviations underscore the challenges of integrating the traditional market with Bitcoin, where shares in ETFs can only be created and redeemed for cash rather than Bitcoin itself.

Although price discrepancies in ETFs tend to be temporary due to the creation-redemption mechanism, Bitcoin’s volatility presents greater risks for ETF investors compared to traditional financial assets. Despite this, specialized trading firms, known as authorized participants, capitalize on such volatility to profitably maintain ETF prices in line with their net asset values.

Virtu Financial Inc. CEO Douglas A. Cifu expressed confidence in sustained opportunities in crypto ETFs, citing the inherent volatility of the asset class. However, the uncertain macroeconomic environment, potentially influenced by Federal Reserve policy decisions, poses challenges for speculative assets like digital tokens.

While hopes persist for increased institutional adoption of spot-bitcoin ETFs, the performance of Bitcoin remains intertwined with broader economic factors. As the Federal Reserve concludes its policy meeting, the outlook for rate cuts may further impact Bitcoin’s price trajectory and ETF discounts.

Mohit Bajaj, director of ETFs at WallachBeth Capital, acknowledged the possibility of ETF discounts persisting if Bitcoin’s downward trend continues, highlighting the uncertainty surrounding the cryptocurrency market.

Featured Image: Freepik

Please See Disclaimer