Experiments with the Crypto Industry Obviously Have Two Ways ... 50/50 (Investment Digest, Oct 25—31)

Warren Buffett invests $600M, Coinbase is worth $8B, StarkWare acquires $30M, USD issues over $125M in investments, NXMH obtains Bitstamp, Algorand receives $62M, Thailand alerts against investments in ICOs, Ripple confirms the institutional investments growing, Kevin O’Leary invests $100M, Nouvive provides an investment observation, OK Blockchain Capital conducts an Investment Sentiment Survey, Steve Wozniak discusses his BTC investment

  • Berkshire Hathaway, with Warren Buffett as CEO, invested a total of $600 million in two fintech firms: $300 million in Paytm and another $300 million in StoneCo. This investment might be a signal that the company with the 10th largest revenue is set to enter the cryptocurrency space.
  • Coinbase concluded its Series E funding round and secured $300 million. The exchange is now worth $8 billion. Andreessen Horowitz, Polychain Capital, Wellington Management, and Y Combinator Continuity are among those who participated in the equity funding. The round was led by Tiger Global Management.
  • StarkWare, an Israeli startup, acquired $30 million in investment. Paradigm was the lead the round. Intel Capital, Coinbase Venture, Sequoia are some of those who participated. Aside from the $30 million raised, Ethereum Foundation, Bitmain, Arthur Breitman of Tezos, and other firms have given the startup a grant totaling $6.7 million. StarkWare is the creator of zk-STARKS.
  • After the USDC’s September release, almost $127.4 million of the stablecoin is in circulation. The USD-pegged coin is backed by juggernauts in both the cryptocurrency industry and that of traditional finance. The said companies are Circle, Coinbase, and Goldman Sachs.
  • NXMH, a Belgian investment firm, obtained cryptocurrency exchange platform Bitstamp for an undisclosed amount. The investment firm acquired an 80% stake. Pantera Capital maintains its 6% stake in Bitstamp.
  • Algorand gets a total of $62 million of investments. The funds will be used to launch Algorand’s own blockchain. In addition to the investments, the tech company welcomed new CEO Steve Kokinos and COO Sean Ford.
  • According to Bangkok Post, Thailand’s Securities and Exchange Commission alerts citizens against investing in nine uncertified ICOs and tokens. The nine are Adventure hostel Bangkok ICO, Kidstocurrency ICO, Singhcom Enterprise ICO, G2S Expert ICO, Every Coin, OneCoin and OFC Coin, Orientum Coin, Tripxchain Coin, and TUC Coin.
  • Ripple published its report for the 3rd quarter. Some of the information in the report reveals the payments company has sold $163 million XRP and 3 billion of its tokens were discharged from an escrow account. 400 million of the released XRP will be used for network support. According to Ripple CEO, institutional investors are also buying XRP.
  • A Shark Tank episode featured the Bundil app. It is an app that allows users to put in small amounts of money in cryptocurrency. Kevin O’Leary invests $100,000 in the startup for 50% ownership.
  • Nouvive’s technical analysis of the market suggests that BTC is a hold, ETH is a sell, and buy digital assets within the top 200, not just the top 20.
  • OK Blockchain Capital conducted a survey called Investment Sentiment Survey. The report stated that close to 50% of respondents suffered losses in the September cryptocurrency market.
  • Steve Wozniak called own BTC investment an experiment. In his Interview on Crypto Trader, Wozniak said his aim was not to come out on top of the speculative market but to experiment with the crypto industry, without watching the price.
  • Over the counter crypto markets are bracing themselves for the entry of institutional investors.  The current market is in need of a better technological infrastructure and liquidity to accomplish big buy or sell orders. Hence, OTC markets are instrumental in accomplishing trades involving large amounts.

BTC

7,892 USD
-1.59%

ETH

248.93 USD
-2.05%

XRP

0.3936 USD
-1.86%

USCOIN

24.89 USD
0.00%

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Ripple XRP Stablecoin, Price Manipulation, Hard Fork Bill, FDIC Bitcoin & Crypto Not A Priority

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off. A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency. Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards. Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop. Source: Bloomberg It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise. Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing. The analyst added: “Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.” With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past. Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated: “Great to see JPM finally admitting that Bitcoin has intrinsic value. Now wait till they understand that miners who run a surplus tend to begin hording.” Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee. This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations. The post JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise appeared first on AMBCrypto.
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