Connect with us

Market

Central Bank Digital Currencies Not a ‘Fad,’ MetLife Investment Says

Published

on

Market

How Elon Musk Became Champion of Doge 

Published

on

By


By February 10, the Doge rally began to fade slowly. On February 15, Musk called upon Doge whales to sell their coins in order to decrease the asset’s concentration.

Lately, Elon Musk has been a fixture in headlines around the world because of what he has been saying about cryptocurrencies. When he tweets, people pay attention, and in the case of cryptocurrency, when he talks about assets, their prices rise. When Tesla announced it would be buying $1.5 billion worth of Bitcoin, many speculated that it could trigger a chain reaction of other big companies buying in. However, it seems that Bitcoin is not actually Musk’s favorite cryptocurrency. That distinction belongs to the currency originally started as a joke Dogecoin.

Currently, Dogecoin ranks a bit below the top 10 cryptocurrencies in terms of market cap, having outperformed giants created thanks to millions of dollars from ICOs. Throughout the years, several prominent charity campaigns on Reddit raising money in Doge have been performed. However, Dogecoin wasn’t supposed to be a big thing. Actually, the currency with a Shiba Inu meme for its logo was created in 2013 as a joke. Dogecoin doesn’t have much to offer in terms of technology. The only thing that has been driving the price of this coin is people’s enthusiasm. “Dogecoin is the people’s crypto,” Musk recently tweeted. Let’s take a look at Musk’s history with Doge and where things stand now.

2017-2018

Earlier this month, during a Clubhouse speech, Musk admitted that he should have bought Bitcoins 8 years ago. However, the first time Musk publicly mentioned crypto was in November 2017. There was a rumor going around back then that Musk was true Satoshi Nakamoto to which he responded that he didn’t remember where he kept 0.25 BTC that his friend sent him years ago. In 2018, Musk confirmed on Twitter that he doesn’t own crypto apart from 0.25 BTC. Things were to change the following year.

2019

In 2019, Musk called the Bitcoin structure “brilliant” however stated that Tesla will stay away from cryptocurrency. The same year Musk was voted the CEO of Dogecoin in a Twitter poll. “Dogecoin might be my fav cryptocurrency,” he replied. That tweet alone provoked a 27% price growth for Dogecoin. Later on, Musk added “former CEO of dogecoin” to his Twitter bio and posted a Dogecoin meme. Another Doge-related tweet made that year reads “dogecoin value may vary.” The tweet was likely aimed at the US Securities and Exchange Commission who had pressured Musk earlier because of his Tesla stocks-related tweet which was considered potentially market-moving. In the spring, Musk and Twitter CEO Jack Dorsey both made statements praising Bitcoin as a world-changing technology. However, it didn’t have any notable effect on the market.

2020

In January 2020, Elon tweeted out to the world that Bitcoin is not his safe word. In December of the same year, he replied to a tweet addressing people shorting Tesla stocks saying that Bitcoin is his safe word. Another tweet he posted in December reads “Bitcoin is almost as bs as fiat money”. But it was in late December that Musk seems to have really dove into the Doge. He started tweeting about Doge repeatedly which triggered a dramatic price spike. It started when Musk tweeted “One word: doge”. That alone was enough to trigger a 40% Dogecoin price boost. On Christmas, Elon posted an image of shorts with the Doge icon sewn on them.

2021

On January 27, Musk paid tribute to the WallStreetBets subreddit by tweeting a link to their community with the comment “Gamestonks”. It was made amidst the GameStop fiasco. The success of WallStreetBets inspired another subreddit, SatoshiStreetBets, to try to organize in a similar manner only for cryptocurrency. This community set its sights on Dogecoin as their asset to pump. On January 29, Musk helped this initiative by posting a parody image of a Vogue magazine cover titled “Dogue”. At the same time, the Tesla CEO replaced his bio information with the word “Bitcoin”. The price of Dogecoin skyrocketed by 800% in the hours following Musk’s tweets, surpassing the $0.05 mark for the first time. For context, for most of its existence Dogecoin has been valued at less than a cent.

On February 4, Musk returned to Twitter after a two-day break. One of the tweets he posted that day was a one-word “Doge” tweet followed by a meme in which the iconic shot from Lion King with Rafiki holding Simba is reworked to Musk holding a Shiba Inu dog(e). The latter tweet got over a million likes. Other highlights from his Twitter include “Dogecoin is the people’s crypto” and “No highs, no lows, only Doge”. These tweets moved the Doge price even higher.

Musk continued to push the Doge thing on February 6, tweeting “Much Wow” and posting a poll in which people were asked to choose the future currency of Earth. The options were Dogecoin or the rest of the cryptocurrencies combined. By that time, Gene Simmons of KISS and Snoop Dogg had joined Elon in his vocal support of Dogecoin, and Musk posted another meme with all three celebs holding Doge.

Musk’s tweets from early February were used by multiple cryptocurrency-related platforms. They didn’t want to miss out on the chance to use the hype to advertise their services. One of these companies was the wallet app developer Freewallet. It used Musk’s tweet to remind followers on Twitter that they can buy Dogecoin in their Freewallet accounts. Seemingly out of the clouds, Musk replied to Freewallet’s tweet saying that their app sucks. Later, it was revealed that Musk actually uses Freewallet and he was tweeting his displeasure after having been locked out of his account. Once his access was restored, Musk thanked Freewallet, which is the only crypto service that Musk is known to use.

By February 10, the Doge rally began to fade slowly. On February 15, Musk called upon Doge whales to sell their coins in order to decrease the asset’s concentration. The businessman promised his “full support” to those who will follow his initiative, even going as far as offering compensation in USD.

Why was Elon shilling Doge while Tesla was investing a jaw-dropping sum in Bitcoin? As Musk has over 40 million followers on Twitter and he’s a popular person, his words resonate. People who don’t know much about cryptocurrencies might think that Musk is doing it just for fun. However, according to Elon himself, he has Dogecoin savings. Once he tweeted that his little son is a “toddler hodler”. The easiest explanation of Musk’s behavior is that he has a profound love of memes and has found a way to express that love in a manner that benefits him financially.

next Altcoin News, Cryptocurrency news, News

Author: Norbert Kozma

Norbert Kozma is a crypto enthusiast, investor, and author. He believes that cryptocurrency will replace fiat money and works to speed up this process by spreading trustworthy crypto information.





Source link

Continue Reading

Market

Coinbase S-1 Filing Details Shows Company Is Ready for Public Market

Published

on

By


According to the detail provided, founder and Chief Executive Officer Brian Armstrong reportedly earned $60 million in the 2020 fiscal year.

Details shared by American cryptocurrency exchange Coinbase in its S-1 filing with the Securities and Exchange Commission (SEC) is evident the company is set to the public markets. The cryptocurrency industry is just a bit more than a decade old but many players in the space are making waves, per revenue and income accruals.

One of the high points of the filing is the extensive growth in both retail and institutional investor transactions carried out by Coinbase. The dramatic shift in trading volumes attained its peak in the fourth quarter of 2020. Retail transactions account for 36% of all volumes, down from 80% in the early quarters of 2018. This shift is being transferred to corporate investors.

In the last quarter, retail trade value came in at $32 billion while institutional buy-ups raked in $57 billion. Amid these impressive trading figures, Coinbase was valued at $100B, making the firm one of the most valuable firms to file for direct listing through an Initial Public Offering (IPO) this year.

Money Bag Firm with Highly Paid Executives

It is surprising to note that Coinbase, a trading platform that was established in 2020 could outpace some long-standing US firms, in terms of remunerations to senior executives. While this metric may seem simplistic, it goes to show how much the company has matured in its financials.

Founder and Chief Executive Officer Brian Armstrong reportedly earned $60 million in the 2020 fiscal year. Stock options worth about $56.6 million accounted for the bulk of the total cash with the main salary coming in at $1 million, and a special package for private security worth $1.78 million was also included in the deal.

According to Coindesk, this figure stands tall ahead of revenue earned by Jamie Dimon, CEO of JPMorgan Chase & Co (NYSE: JPM) pegged at $31.5 million, and Tim Cook, CEO of Apple Inc (NYSE: AAPL), who earned $14.7 million.

Other Coinbase executives including Chief Product Officer Surojit Chatterjee raked in $15.8 million in 2020 compensation and Chief Legal Officer Paul Grewal earned $18 million in 2020.

Risks Identified by Coinbase in Its S-1 Filing

As required of companies aspiring to go public, Coinbase identified some potential risks to its business in the S-1 filing.

As gleaned, the exchange believes that unmasking the identity of Bitcoin creator Satoshi Nakamoto will pose a significant risk to its business. However, the company did not reveal how this could happen.

The filing also noted that the advances in decentralized finance (DeFi) are a risk factor for the company as the growing ecosystem competes for customers and transactions. Per the filing, Coinbase noted that they “compete against a growing number of decentralized and noncustodial platforms and our business may be adversely affected if we fail to compete effectively against them.”

Negative perceptions surrounding Bitcoin (BTC) or Ethereum (ETH), and further regulatory hassles were also listed amongst the company’s potential risks to watch.

next Business News, Cryptocurrency news, IPO News, Market News, News

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



Source link

Continue Reading

Market

‘Shift 1% of Portfolio into Bitcoin’, JPMorgan Advises Investors as Bull Run Cools Off

Published

on

By


Analysts of JPMorgan highlighted the evaporating liquid supply as multi-billion dollar institutions and corporations are buying substantial quantities at a fast rate.

JPMorgan Chase & Co (NYSE: JPM) strategists have suggested that investors should consider moving 1% of their portfolio into Bitcoin to serve as a hedge against fluctuations in traditional asset classes including stocks, bonds, and commodities.

Many people over the years including the majority of Wall Street saw Bitcoin as a commodity without any strong backing, hence doubting its ability to perform and stay in the financial scene. It seems the narrative about the biggest digital coin is gradually changing which is evident in the new wave of institutional influx in the crypto market. 

The latest endorsement from the US multinational investment bank, JPMorgan has boosted the already existing notion which has seen many experts tout Bitcoin as a hedge against inflation. The bank has told its investors that they can shift 1% of their portfolio into Bitcoin only if those investors have just a small interest in Bitcoin.

Analysts from the bank highlighted the evaporating liquid supply as multi-billion dollar institutions and corporations are buying substantial quantities at a fast rate. “The demand for bitcoin is significantly higher than the actual supply and investors could put 1% of their portfolio in BTC,” JPMorgan advised. 

Bitcoin’s last halving which happened in May last year, saw the production rate of new Bitcoins slashed into two. The increasing demand that followed the halving, coupled with its decreasing liquid supply drove the price of the coin up as it has gained over 50% value since January 1.

The latest interest from institutions has further fueled the decreasing liquid supply as MicroStrategy Inc (NASDAQ: MSTR) now owns over 90,000 Bitcoin, with Tesla Inc (NASDAQ: TSLA) allocating $1.5 billion in the asset while Grayscale is purchasing new coins at record levels. 

JPM strategists Joyce Chang and Amy Ho in a note to clients stated that “in a multi-asset portfolio, investors can likely add up to 1% of their allocation to cryptocurrencies in order to achieve any efficiency gain in the overall risk-adjusted returns of the portfolio.”

Bitcoin’s insane bull run looks to have hit a wall as its value has seen a 20% decline since its all-time high of over $58,000 on February 21. JP Morgan’s latest comments have been met with criticisms as it contradicts earlier statements made by other strategists from the bank, which stated that “crypto assets should be treated as investment vehicles and not funding currencies such as USD or JPY.”

The bank also claimed that “crypto assets continue to rank as the poorest hedge for major drawdowns in equities,” but looks to have circled back on its words. 

next Bitcoin News, Cryptocurrency news, News

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.



Source link

Continue Reading
Advertisement

Trending