Based on the latest available data, the Nasdaq-traded Microstrategy possesses 190,000 bitcoins, acquired at a cost of $5.96 billion. Presently, the value of the company’s bitcoin holdings has swelled to $9.88 billion. This marks a 66% increase in the firm’s bitcoin portfolio, a stark contrast to its performance just eight months earlier. From Decline to […]
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The foremost crypto exchange in the United States, Coinbase, released its earnings report on February 15th. As expected, there were major takeaways from the financial report, highlighting the crypto company’s performance in the fourth quarter of last year.
Coinbase maximalist Coinbase Duck noted in an X (formerly Twitter) post how the crypto exchange defied expectations in the fourth quarter of 2023. Coinbase recorded $170.6 billion in spot trading volume, exceeding the estimated $168.
Specifically, a considerable influx of retail investors accounted for 18% of the total spot trading volume against the estimated 16% that the crypto exchange was projected to record. The return of these retail investors is believed to have been partly due to the resurgence that Bitcoin and the broader crypto market experienced towards the end of the year.
Meanwhile, consumer transaction revenue ($492.5 million) was way below the estimate of $570.9 million. However, Coinbase Duck noted that this wasn’t necessarily bad, as some investors started using advanced trading.
In a letter to its shareholders, the crypto exchange also revealed that some existing users traded significantly higher volumes, which could have necessitated the move to advanced trading.
Coinbase also recorded a total operating expense of $838 million, which happened to be below the projected estimate of $878 million. Specifically, the crypto exchange did a great job in its transaction expenses, recording an expense of $126 million compared to the estimate of $163 million.
However, the company’s sales and marketing expenses ($106 million) exceeded the estimate of $90 million. Coinbase revealed that this growth was “primarily driven by higher seasonal NBA spending, higher performance marketing spending due to strong market conditions, and increased USDC reward payouts due to growth in on-platform balances.”
Coinbase recorded a net income of $273 million, beating the estimate of $104 million. Interestingly, going by figures from its Shareholder letter, the fourth quarter of 2023 was the only one in the year in which the crypto exchange didn’t record a loss for its net income. Meanwhile, the company also recorded its largest net revenue during that period.
Coinbase suggested that the excitement around the Spot Bitcoin ETFs and the expectations of more favorable market conditions in 2024 had contributed to its success in Q4 of 2023. Coinbase is a primary custodian for most Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT).
Meanwhile, the crypto exchange earned $1.13 per share, beating the forecast of $0.43. This is without the crypto exchange accounting for the FASB change, which Coinbase Duck revealed could bring its earnings per Share (EPS) to $2.1.
Chart from Tradingview
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
A sophisticated social engineering campaign successfully duped several prominent crypto news outlets into promoting a fabricated $10 million Uniswap airdrop on Feb. 16. The scammer, posing as a Uniswap Foundation representative, offered coordinated publicity in tandem with the legitimate Uniswap v4 announcement.
CryptoSlate declined to cover the airdrop, noting concerns about potential malicious changes to tracking links post-publication. While Uniswap’s v4 announcement proved genuine, the accompanying airdrop was exposed as a scam.
The scammer meticulously built credibility, referencing a conversation with “Uniswap’s VP of Communication” and proposing favorable payment coverage. This level of coordination suggests an evolution in tactics utilized by scammers targeting the crypto media space.
As the conversation of a potential partnership continued, the scammer began to increase the complexity of their duplicity. Below is a forged screenshot of an email sent to CryptoSlate to prove the campaign’s legitimacy.
However, on reviewing the content, CryptoSlate identified the use of tracking links using redirects rather than typical UTM parameters, meaning that the links could be changed to direct to any website at any time, with the publication having to alter the content.
The scammer was confronted, upon which further communication ceased. The company involved in the scam is registered in the United Kingdom, one of the top three countries for crypto crime in 2023.
The article in question, successfully published on numerous crypto media sites, falsely claimed the launch of Uniswap V4 and a $10 million UNI airdrop. It included real links to the Uniswap website, which were then changed to point to a phishing site after Uniswap made its actual announcement.
Specifically, it reported a generous $10 million UNI airdrop to celebrate the V4 launch. It described it as a “first-come, first-serve” initiative to reward the community and attract new users. This move was presented as a strategy to democratize financial participation and engage users. This contrasts legitimate airdrops conducted based on previous wallet activity, not first-come, first-serve.
In contrast, the real news highlights the Uniswap Foundation’s announcement of the tentative launch date for Uniswap V4 following the Ethereum Dencun upgrade. The genuine announcement focuses on the development stages, including core code completion, testing, gas optimization, and security enhancements. It mentions a community audit contest and the deployment to the testnet as preparatory steps for the final launch in the Ethereum mainnet, tentatively scheduled for the third quarter of 2024.
While no financial losses for readers have been reported as of press time, this incident erodes trust. For reputable news outlets, maintaining credibility is paramount. In the aftermath, crypto media and industry observers will look closer at measures necessary to safeguard against increasingly sophisticated social engineering scams.
This incident highlights the risks inherent in the fast-paced crypto news cycle. Publishers face mounting pressure to break impactful stories quickly but must thoroughly vet potential sources. The scammer’s use of self-destructing messages adds a layer of security, hindering post-incident investigations.
It serves as a salient reminder of the due diligence required in crypto reporting. In this instance, the fraudulent airdrop scheme closely paralleled a major legitimate product announcement, increasing plausibility. Journalists are advised to maintain a healthy skepticism and employ rigorous verification techniques, even when confronted with seemingly urgent and enticing opportunities.
As bitcoin weaves through its dynamic trading patterns, its valuation on Feb. 16, 2024, reveals pronounced bullish indicators. Floating within a 24-hour trading window of $51,364 to $52,884, the digital currency’s market worth firmly grips the $1.02 trillion mark. Bitcoin The volume of bitcoin’s global trades is cruising at $29.86 billion, showcasing a medium-to-high engagement […]
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Multiple US banking groups are seeking inclusion in the Bitcoin exchange-traded funds (ETFs) landscape, prompting a request for a rule change to facilitate their participation.
In a Feb. 14 letter to SEC Chair Gary Gensler, a coalition comprising the Bank Policy Institute, the American Bankers Association, the Securities Industry and Financial Markets Association, and the Financial Services Forum advocated their stance.
Crypto custodial
The coalition urged the SEC to reassess a regulation that made it expensive for traditional banks to offer crypto custody services. Current rules require these financial institutions to classify cryptocurrencies as liabilities on their balance sheets. Therefore, the banks must allocate assets equivalent to the crypto holdings to mitigate potential losses and adhere to the strict regulatory capital requirements.
The coalition contended that this rule hampered them from acting as custodians for the newly introduced Bitcoin ETFs, a role they commonly undertook for most other Exchange-Traded Products (ETPs). This limitation, the group argued, stemmed from factors such as the “Tier 1 capital ratio and other reserve and capital requirements.”
They added:
“If regulated banking organizations are effectively precluded from providing digital asset safeguarding services at scale, investors and customers, and ultimately the financial system, will be worse off, with the market limited to custody providers that do not afford their customers the legal and supervisory protections provided by federally-regulated banking organizations.”
The group further emphasized the need to mitigate the concentration risk of a single non-bank entity dominating the custodial services for these Bitcoin ETFs. According to the group, allowing prudentially regulated banks to offer custodial services for SEC-regulated ETFs, akin to qualified non-bank asset custodians, could address this concern.
Coinbase, the largest US-based crypto trading platform, is the unnamed non-bank entity mentioned in the letter. The exchange serves as the asset custodian for 8 of the ETF issuers.
The group urged the SEC to refine the definition of crypto outlined in Staff Accounting Bulletin 121 (SAB 121) to exclude traditional financial assets recorded or transferred on blockchain networks.
“SAB 121 makes no distinction between asset types and use cases, but instead generally states that crypto-assets pose certain technological, legal, and regulatory risks requiring on-balance sheet treatment,” they added.
Additionally, they proposed exempting banks from the on-balance sheet requirements while upholding disclosure obligations. This approach would enable banks to partake in select crypto activities while maintaining transparency for investors.
Universal loyalty programs can serve as potent tools, not only forging a direct link between a brand and its consumers but also influencing the latter’s shopping behaviour, Gennady Volchek, the CEO of the loyalty rewards app Shping, has said. However, by harnessing the power of blockchain and cryptocurrency, these loyalty programs empower brands to connect […]
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The US Security and Exchange Commission’s (SEC) Office of Inspector General (OIG) is investigating cryptocurrency-related financial conflicts of interest identified by the accountability group Empower Oversight.
In a Feb. 15 statement, Empower Oversight disclosed that the SEC’s division was in the “final stages of completing” an open investigation into matters relating to the failures of the SEC’s Ethics Office and a former official, William Hinman.
Hinman is accused of participating in matters where he held a financial stake, notably delivering a contentious speech asserting that specific digital assets, such as Ethereum, were not subject to SEC regulation as securities.
Critics within the Ripple XRP community contend that Hinman’s speech unfairly favored Ethereum, potentially giving it an edge over other digital assets in the market.
Empower Oversight emphasized its concerns by presenting documentation indicating that key figures from Ethereum, including co-founders Joseph Lubin and Vitalik Buterin, were involved in drafting the infamous speech.
In addition, the watchdog group also declared that Hinman “blatantly disregarded” instructions not to meet with specific individuals while working at the SEC, such as his former employer, Simpson Thacher, a member of the Ethereum Enterprise Alliance (EEA.)
“When Hinman departed the SEC in December 2020, he returned to Simpson Thacher as a partner. That same month the SEC sued Ripple, alleging XRP was an unregistered security,” Tristan Leavitt, president of Empower Oversight wrote.
This matter was officially brought to the attention of the OIG in May 2022.
Empower Oversight has threatened the financial regulator with a lawsuit if it fails to provide information regarding its investigations by Feb. 23.
The group noted that the SEC has failed to provide information about the case since it filed a Freedom of Information Act (FOIA) in May 2023.
Leavitt said:
“The silver lining is that now we know one reason for the stonewalling is that there actually is an active inquiry by the inspector general, which is almost done. However, whether the OIG report thoroughly addresses all the issues we raised remains to be seen because we don’t know the exact scope of the inquiry. The SEC’s OIG needs to get this right and help prevent similar conflicts of interest from undermining public faith in the SEC’s work in the future.”
Kraken, a U.S.-based cryptocurrency exchange, has started requiring additional information in the U.K. regarding transactions of self-custody wallets made to and from its accounts. Kraken sent an email to some of its U.K. customers, stating that if the information required was not provided, it could result in an account lock until the required data is […]
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The recent Bitcoin rally, propelling its price to the $52,000 level, has positively impacted the stock of US-based cryptocurrency exchange Coinbase (COIN). After experiencing a notable dip to $115 at the start of February, Coinbase’s stock rose to $172 on Thursday, following a significant upgrade by a JPMorgan analyst.
According to a Bloomberg report, JPMorgan analyst Kenneth Worthington abandoned his bearish view on Coinbase weeks after downgrading the stock.
As Bitcoin traded higher, Coinbase shares gained as much as 7.8% following the upgrade. Worthington believes the exchange will likely benefit from the recent rally in digital asset prices, prompting him to shift his rating back to neutral.
This change in stance comes after Worthington’s January downgrade, where he predicted a potential deflation of enthusiasm for Bitcoin exchange-traded funds (ETFs).
However, contrary to his previous forecast, Bitcoin ETFs have been successful in terms of trading measures, and the price of Bitcoin has surged beyond $52,000, reaching its highest level since 2021. In a note to clients on Thursday, Worthington explained:
Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining but improving activity levels and Coinbase’s earnings power as we look to 1Q24.
Coinbase’s stock experienced an 8% dip at the beginning of the year, following an impressive 400% surge in 2023. Analyst opinions on the stock remain divided, with buy, hold, and sell recommendations being roughly evenly split.
Worthington maintained his $80 price target on the stock ahead of the company’s earnings report, which is scheduled to be released after the market closes on Thursday.
Worthington emphasized that Coinbase’s business is closely tied to token prices, with its core revenue being transaction-based. As the value of tokens increases and trading activity gains momentum, fees based on the value traded are expected to drive higher trading volumes, ultimately contributing to improved revenue for Coinbase.
On February 14th, the trading volume of Bitcoin ETFs showcased notable figures, with Blackrock’s IBIT recording the lead with $721 million in volume.
Grayscale’s Bitcoin Trust (GBTC) followed closely with $619 million, while Fidelity’s FBTC secured the third spot with $456 million. On the other hand, Ark Invest accumulated a volume of $169 million.
The nine ETFs’ total trading volume amounted to approximately $1.5 billion. Notably, the largest ETFs experienced higher trading volume than the previous day, with IBIT surpassing $700 million and GBTC exceeding $600 million.
Intriguingly, before the trading session, GBTC sent less than half of the Bitcoin it sent to Coinbase the previous day. Despite this decrease, GBTC’s total trading volume was 50% higher.
As the demand for Bitcoin continues to surge, ETFs play a crucial role in facilitating institutional and retail investors’ participation in the cryptocurrency market. The increased trading volume of Bitcoin ETFs highlights investors’ growing interest and confidence in digital assets.
Currently, Bitcoin is trading at $51,900 and encountering a critical resistance level at $52,000.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Ethereum price is showing bullish signs above the $2,720 support. ETH eyes more gains and might surge toward the $3,000 resistance zone.
Ethereum price gained pace above the $2,750 pivot level. ETH bulls were able to pump the price above the $2,800 resistance zone. It even spiked above $2,850 before the bears appeared.
A new multi-week high was formed at $2,869 before there was a downside correction, like Bitcoin. There was a minor move below the $2,850 level. Ether dipped below the 23.6% Fib retracement level of the recent wave from the $2,728 swing low to the $2,869 high.
The bulls are now active above the $2,800 level. Ethereum is now trading above $2,800 and the 100-hourly Simple Moving Average. There are also two bullish trend lines forming with support at $2,825 and $2,780 on the hourly chart of ETH/USD.
Immediate resistance is near the $2,880 level. The first major resistance is near the $2,920 level. The next major resistance is near $2,940, above which the price might rise and test the $3,000 resistance.
Source: ETHUSD on TradingView.com
If the bulls push the price above the $3,000 resistance, Ether could even rally toward the $3,120 resistance. In the stated case, the price could rise toward the $3,250 level.
If Ethereum fails to clear the $2,880 resistance, it could start a downside correction. Initial support on the downside is near the $2,825 level and the first trend line.
The next key support could be the $2,780 zone or the second trend line. It is close to the 61.8% Fib retracement level of the recent wave from the $2,728 swing low to the $2,869 high. A clear move below the $2,780 support might send the price toward $2,720. The main support could be $2,700 or the 100 hourly SMA. Any more losses might send the price toward the $2,600 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $2,780
Major Resistance Level – $2,880
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.