Major Steps Taken Toward Adoption |
|
Although it was lost in the commotion of last week’s Merge, the push for mainstream adoption soldiers on. Four significant additions to the cryptocurrency wave were added last week: Fidelity plans to offer bitcoin trading to retail customers. Charles Schwab, Fidelity, and Citadel Securities announced the start of their crypto exchange, EDX Markets. The Nasdaq is planning to offer crypto custody services to institutions. Colorado became the first state to accept crypto for tax payments. Let’s break down each of them. Fidelity Bitcoin Trading Fidelity is one of the largest asset managers and brokerages in the world. With $4.2 trillion in assets and 34 million brokerage accounts, Fidelity is a true financial giant. They also have a long track record of supporting crypto. Fidelity’s crypto journey began way back in 2014 when they started mining bitcoin. In 2018, they launched bitcoin trading for institutional investors and hedge funds. In 2020, they released their bitcoin ETF. And most recently, in May 2022, they became the first retirement plan provider to add Bitcoin as a 401(k) plan investment option. However, their next move might be their biggest yet… Opening up bitcoin trading to 34 million accounts is massive for the industry. Besides the obvious positive of 34 million new potential buyers, this is another step towards making crypto more accessible to the public. EDX Markets In similar news, Charles Schwab, Fidelity, and Citadel Securities are releasing a new crypto exchange, EDX Markets. EDX Markets aims to “offer investors safer, faster, and more efficient cryptocurrency trading through trusted intermediaries.” Us crypto natives have unusually high-risk tolerances. We’re alright with sending our money to a Coinbase or a Kraken, but most of the world is not. People understandably want proven safety when using their money, and brands like Charles Schwab, Fidelity, and Citadel offer precisely that. Fair or not, an exchange backed by known financial heavyweights will attract people who otherwise wouldn’t touch crypto. Nasdaq Custody Services The Nasdaq, an American stock exchange best known for its tech stocks, is also entering the institutional crypto fray. Although the Nasdaq has dabbled in crypto before by being a surveillance service provider, this would be their first direct entry into the market. The custody services will be aimed at institutions, and according to the Nasdaq, will compete with “the likes of Coinbase, BitGo, and Gemini.” Our opinion on this is exactly the same as our opinion on the Fidelity and EDX news: this is good for crypto. Having the second largest stock exchange in the world, entering the market can only be good for widespread adoption. Although news like Fidelity, EDX, and Nasdaq aren’t great for industry originals such as Coinbase and FTX, these are the types of stories we’ll need to see more of for crypto to reach its full potential. Crypto Tax Payments Colorado made headlines on Tuesday when it became the first state in the Union to accept crypto as payment for taxes. Coloradans can now use crypto to pay their individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax. However, there are two catches: They have to pay using PayPal. Crypto tax payments are charged an additional $1 plus 1.83% of the payment amount in fees. Although we can’t be sure of how many people will ultimately pay their taxes with crypto, it’s nice to see a state government begin to embrace the movement. |
|
As you read this right now, everything is lining up perfectly for a historic gold bull run... Gold surged past $2,000/oz earlier this year. Market uncertainty is high, with inflation worries causing many investors to scramble for safe-haven outlets. The Fed is expected to continue raising rates. Even Goldman Sachs has begun raising its price target for gold. Bottom line: NOW is the time you want to own gold The team at Stansberry Research just put together a special presentation about their No. 1 pick for this current gold bull run. It has more potential upside and substantially less risk than any other gold strategy we've ever seen... And in the past, folks investing in this same gold strategy would have been able to make nearly 50X their initial investment. Today, you can take advantage of a similar situation for only around $10. Click here for details >> |
|
Recapping The Ethereum Merge |
|
We’ve spent a lot of time on CoinSnacks covering The Merge, and for a good reason, as it was one of the most anticipated events in crypto’s history. Now that it’s over, let’s recap how it went and what we got right (and wrong) with our suggestions from last week. Last Week’s Predictions (⚠️ Spoiler alert: The Merge was successful) Sometime around 3:00 AM Eastern Time, viewers of perhaps the nerdiest livestream of all time were greeted with this. Just like that, the era of proof-of-work for Ethereum was over, and the era of proof-of-stake had begun. Last week, we made three main suggestions for you leading into The Merge: Keep an eye on its success, as a successful Merge could lead to a short squeeze that boosts ETH’s price. Steer clear of the EthPoW fork. Avoid the trade entirely, as it is challenging to trade when the Fed is hiking rates. Well, we ended up two for three. The Merge was successful, but instead of a short squeeze, we got a “sell the news” event as everyone decided to take profits. The result is an ETH that has been down-only since The Merge. EthPoW turned out to be the disaster we feared it would be. It’s been plagued with problems since the start, has already endured a brutal but predictable hack, and is currently down ~90% from it's all-time high. Hopefully, you took our advice and avoided this one. Avoiding the trade actually proved to be good advice. Since The Merge, ETH is down ~15%. They don’t say “don’t fight the Fed” for nothing. Cause For Celebration Even though the price action for ETH has been bad since The Merge, there still is a lot to celebrate: The Merge itself went as smoothly as anybody could ever hope for. It’s a true testament to the hard work and talent of the developers who put years into this. The Merge reduced global electricity consumption by 0.2% overnight. The stage is now set for Ethereum to proceed with the rest of its roadmap. Overall, a great day for crypto. |
|
Starting a New Business is Hard… Trends By Hubspot Makes it Easy |
|
When new trends (like crypto) enter the market, it’s easy to laugh them off as just another fad. But those that take advantage of these early trends have the potential to hit gold. That’s why Trends by Hubspot is such a game-changer for those looking to start a new business. They give you a head start in starting a business by: Alerting you to new ahem… trends in the market Providing 1,000+ fully vetted business ideas you can start in a weekend Hosting live, virtual business trainings and Q&A sessions with entrepreneurs, investors, & industry leaders Giving access to the Trends’ community, which contains thousands of ambitious business-builders just like yourself But here’s the thing, Trends isn’t only for those looking to start their first business. It’s also the perfect tool for those looking to grow an existing business. That’s why we – the founders of CoinSnacks – have been members for years. A membership normally costs $299, but CoinSnacks readers can try Trends by Hubspot out for 7 days for just $1. |
|
SEC Claims Control Over Ethereum |
|
Here at CoinSnacks, we have previously lamented the SEC’s tendency to “regulate by enforcement.” In other words, we are not fans of the SEC creating laws to enforce retroactively, instead of what their job should be, which is enforcing pre-existing laws. Unfortunately, the SEC is back to their dirty ways. This time, they have somehow turned a slam dunk Initial Coin Offering (ICO) case into an assertion that all of Ethereum falls under their purview. Should this stand, crypto is suddenly much more vulnerable to the iron fist of SEC chairman Gary Gensler. The Case The case itself is nothing out of the ordinary. Crypto influencer Ian Balina ran a 2018 ICO for SPRK tokens. Unfortunately for Ian, he did not register the ICO with the SEC and forgot to mention that he was getting paid for promoting the ICO. This puts him in violation of the law and right in the SEC’s crosshairs. Considering that the SEC has repeatedly litigated similar cases over the years, this isn’t a shock to anybody. Nobody takes issue with the SEC doing their job here. What people take issue with is paragraph 69 of their case filing. An Overreach Paragraph 69 says this: "The U.S.-based investors in Balina’s pool irrevocably committed to the transaction when, from within the United States, they sent their ETH contributions to Balina’s pool. At that point, their ETH contributions were validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country. As a result, those transactions took place in the United States." In plain English, the SEC claims that because most Ethereum nodes are in the United States, the SEC should have regulatory power over all of Ethereum. If that sounds ridiculous to you, it’s because it is. The problem is that the SEC does not need to establish that the Ethereum transactions were in the United States. Their ability to prosecute Ian had already been established, both in this case and in the many similar cases the SEC has previously litigated. All this is a backdoor attempt to sneak in a precedent that the SEC has been unable to gain through legislation. Our Take The SEC’s actions in this case, coupled with Gensler’s statement that proof-of-stake assets are securities, make us concerned for Ethereum’s future. It is clear that the SEC wants power over Ethereum. Should the courts find the SEC’s arguments convincing and grant them that power, the consequences could be dire. Ethereum is the dominant layer-1 blockchain. The vast majority of decentralized finance and NFTs take place on Ethereum. That would be at risk should the SEC secure regulatory power over Ethereum. For the sake of our industry, we must push back aggressively. |
|
Other Content You Might Enjoy |
|
Kraken’s Powell steps down, incoming CEO says culture will not change Here are all of the Biden administration's crypto reports Crypto exchange FTX obtains European investment firm license From Starbucks to sailing leagues, Web3 loyalty programs are being tested more broadly The fastest growing crypto picks newsletter ** Messari raises $35M to expand ‘Bloomberg of crypto’ ambitions The spectacular collapse of CryptoKitties, the first big blockchain game CoinShares launches algorithmic trading tool for retail investors Coin Center: Staking doesn't change how ETH is regulated **Sponsored |
|
|
|