“We are in our late 60s and in good health, and we have a second home worth $900,000 that is fully paid for.”
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If Tony’s Chocolonely founder Teun van de Keuken had his way, he would’ve ended up behind bars long before he created his popular chocolate company.
The Dutch journalist made an attempt to get himself arrested in 2005, showing up to a police station and declaring himself a criminal. The crime? Fueling slavery by knowingly purchasing a chocolate bar made with illegal child labor.
When his activist stunt failed, van de Keuken came up with a new plan: creating a chocolate bar of his very own that proved the candy could be made without any exploitation of children.
His chocolate company would pay West African cocoa farmers a living income to help combat the scourge of child labor, and its beans would be sourced from land that had been deforested.
Nearly 20 years later Tony’s Chocolonely is not only one of the most popular chocolate brands in van de Keuken’s native Netherlands, it is known around the world.
The brand, whose stated mission is to make “100% slave free the norm in chocolate,” can be found at manor US retailers like Whole Foods, Target and Walmart. Its revenue grew 23% last year to $162 million.
“We’ve demonstrated it’s possible to pay a living income to farmers to address the challenges of child labor,” CEO Douglas Lamont told CNBC Make It in a recent interview. “[We’ve shown] you can be a successful chocolate company doing it the right way, in an ethical way.”
For the full story of how Tony’s Chocolonely went from a stunt to a global brand, check out CNBC Make It’s video.
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The Ethereum layer-2 network, Base, has witnessed a remarkable surge in assets locked, soaring by approximately 200% over the last month to over $3 billion, according to L2beat data.
Key contributor Jesse Pollak disclosed that Base hit the $3 billion milestone five days after crossing the $2 billion threshold. Notably, the network took 203 days to reach its first billion mark and just 23 days to touch $2 billion.
Furthermore, on-chain data shows that the increased TVL is matched with an ever-expanding user base. According to the Dune analytics dashboard curated by Watermeloncrypto, Base’s daily active users have surpassed 5 million this week, with the network’s total revenue already exceeding $36 million.
Consequently, industry experts foresee Base’s growth catalyzing the entry of more firms into on-chain development. Ryan Watkins, the founder of Syncracy Capital, said:
“Imagine when Wall Street realizes Coinbase is printing $500M+ in annual revenue from an Ethereum rollup. Base may be the ultimate catalyst that gets enterprises building onchain.”
Why Base metrics are rising
The network’s exponential growth can be attributed to various factors, including the notable surge in meme coin activities and the advent of innovative products.
There has been a notable surge in memecoins traction on Base recently. Consequently, Base has experienced heightened liquidity and more favorable market sentiment as industry analysts speculated that the assets could spearhead the next adoption phase.
Notably, CryptoSlate reported that Base’s memecoins proliferation briefly spiked its network fees above that of rival layer-2 networks despite the introduction of the Dencun upgrade. To manage this surge, the network adjusted its gas fee target to 3.75 mgas/s, which gave it 50% more capacity.
Moreover, Base has witnessed a surge in crypto developers creating new products on the layer-2 solution, further fostering adoption and usage.
For context, Base recently welcomed one of the pioneer layer-3 networks, Degen, to its ecosystem on March 28. It said:
“L3s are appchains which deliver lightning-fast transactions because they settle on L2s like Base instead of connecting directly to Ethereum. A new onchain internet demands new models for scaling, and L3s utilize the power of L2s in new ways.”
Andrew Forte, the director of business development at Dappd, also highlighted Coinbase’s recent efforts to develop a native smart wallet that does not need seed phrases or private keys for the layer-2 solution. According to him, this wallet could help drive Coinbase’s vast user base to Base.
Coinbase plans to incentivize developers to contribute to the network through grants, allowing them to build freely and rewarding those who positively impact the ecosystem.
Pollak added:
“Gas grants will be upfront, with path to scaling. Builder grants will be primarily retroactive because we’ve observed that creates aligned incentives and a strong builder culture.”
Mentioned in this article
With the growing adoption of blockchain technology in various digital asset infrastructures, a team from Abu Dhabi, known for its wealth from the oil industry, has made a significant entry into the space with the launch of the Venom Blockchain.
Venom Blockchain Market Cap Soars
Venom operates as a foundational Layer 0 blockchain network, equipped with dynamic sharding and a proof of stake (PoS) consensus method. Designed to offer a scalable and efficient infrastructure, this advanced blockchain platform is tailored for the development of diverse products. It seamlessly bridges governmental applications and traditional Web3 projects through its sophisticated mesh network architecture.
The distinguishing feature of the Venom blockchain is its infrastructure, which, according to its official website, is capable of processing 100,000 transactions per second, with an average fee per transaction of just $0.0002.
As a result, the Venom Blockchain is currently attracting significant attention, as evidenced by various metrics. The Venom Blockchain currently boasts a market capitalization of over $5.2 billion and a trading volume of over $200 million, highlighting Abu Dhabi’s interest in the technology.
Over One Million Users In The First Year
The launch of Venom had a significant impact, attracting over one million users in 24 hours, demonstrating the platform’s appeal to investors and developers for building Web3 products.
In addition, the platform reportedly has over 20 projects ready to debut on the platform and several pilot stablecoin initiatives in different countries, underscoring the confidence developers have in its infrastructure.
Overall, the rise of Venom Blockchain underscores Abu Dhabi’s ability to adopt innovation beyond its traditional sectors and demonstrates the emirate’s interest in promoting the advancement of blockchain technology.
On March 27, the native token of the blockchain, VENOM, was listed on KuCoin, leading to a significant price surge of over 27% within 24 hours. Presently, the token is trading at $0.6580, reflecting a recent increase of 3.8% in the past trading hour.
In the past 24 hours, the trading volume of the VENOM token has reached $62,515,705, marking a notable increase of 193.60%, according to CoinGecko data.
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.
Bitcoin miner Bitdeer is reportedly in discussions with private credit firms to secure $100 million in funding to expand its mining capacity. It is believed that the cryptocurrency miner has engaged a financial adviser to assist with the negotiations. Negotiations Between Bitdeer and Lenders Continue The cryptocurrency mining firm Bitdeer Technologies Group is reportedly seeking […]
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On Monday, the U.S. spot bitcoin exchange-traded funds (ETFs) experienced their first positive inflows, breaking a streak of five consecutive days of outflows totaling $887.6 million. The momentum continued into Tuesday, with the ETFs amassing $418 million in inflows, building on the $15.4 million gained the previous day. Bitcoin ETFs’ Fortunes Flip The week prior […]
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Ordinals infrastructure platform OrdinalsBot said it raised over $3 million in its seed funding round to enhance opportunities within the broader Bitcoin ecosystem, according to a March 26 statement shared with CryptoSlate.
The funding round was led by DACM, with significant contributions from Eden Block and Nural Capital. Notable participants include WWVentures, Lightning Ventures, and Oak Grove Ventures.
With this latest funding injection, OrdinalsBot’s total funding now amounts to $4.5 million, as it had raised more than $1 million for its pre-seed funding.
OrdinalsBot launched last year after the Ordinals protocol became one of the primary narratives within the crypto community. Since then, the platform has developed a range of products facilitating the creation and management of Bitcoin inscriptions and BRC-20 tokens.
‘Enhancing opportunities’
The platform plans to leverage this fresh capital to enhance opportunities within the Ordinals and broader Bitcoin ecosystem.
To achieve this, the firm wants to scale up its team across all departments, particularly its development team, which would focus on pioneering solutions to empower users and developers within the ecosystem.
Toby Lewis, the co-founder of OrdinalsBot, emphasized the platform’s evolution from an automated inscription service to a multifaceted endeavor. He said:
“We initially launched as the first automated inscription service in the Bitcoin Ordinals ecosystem, and have since expanded in many ways and believe that this next chapter, with the support of our new investors, will further continue to put us in a position to turbocharge Bitcoin – the biggest and most decentralized chain in the world.”
Similarly, Brian Laughlan, the other co-founder, explained Bitcoin’s pivotal role as the backbone of decentralized finance and highlighted OrdinalsBot’s contribution to establishing data infrastructure on the Bitcoin blockchain.
Furthermore, DACM CEO Richard Galvin commended OrdinalsBot’s commitment to innovation in Bitcoin’s ordinal inscriptions. He noted the platform’s involvement in mining the largest BTC block to date, including three of the ten largest BTC inscriptions recorded last month.
Disclaimer: A few members of CryptoSlate’s team made a small investment in OrdinalsBot because we believe in the team and project.
The post OrdinalsBot secures $3 million seed funding to turbocharge Bitcoin inscriptions ecosystem appeared first on CryptoSlate.
Every long-term investor should have some financial stocks in their portfolio. Why? Managing money is a multi-trillion-dollar industry.
There is something for every investor in finance. Want to invest in high-growth emerging markets? Check. Want some blue-chip stocks that will pay you dividends? No problem. No matter how you slice it, there is a path to building wealth that can help you retire a millionaire.
Here are five stocks to dig deeper into that I’ve picked for their strong fundamentals and long-term potential.
1. Nu Holdings
More than 660 million people live in Latin America, and many still lack access to essential banking services. Nu Holdings (NU 0.49%) is helping change that. It’s a digital bank, which means it doesn’t have physical branches. As long as you have internet access, you can bank with Nu. The company operates primarily in Brazil, Mexico, and Colombia, with 95 million members today.
Members are increasing, and the company’s cross-selling of different banking, insurance, and investment products is fueling strong profit growth. The company’s net income was $361 million in Q4, up from just $58 million a year prior. With profitable growth and expansion, Nu Holdings could add a spark to any long-term portfolio over the coming decades.
2. MercadoLibre
Many assume Latin American e-commerce giant MercadoLibre (MELI -0.81%) is a one-trick pony, but that couldn’t be further from the truth. MercadoLibre’s fintech unit, Mercado Pago, could be the company’s crown jewel. In Q4, it had 53 million unique fintech users, up 22% year-over-year. Users can bank, borrow, and invest with Mercado Pago.
Investors may like that MercadoLibre is much more than a fintech company. Its e-commerce, logistics, and advertising units give the business a diverse revenue base. Total revenue grew 37% in 2023, so there’s still a lot of potential investment upside if the company can maintain its torrid pace.
3. Berkshire Hathaway
Legendary investor and billionaire Warren Buffett can’t invest your money for you, but buying stock in his holding company Berkshire Hathaway (BRK.A 0.47%) (BRK.B 0.40%) is the next closest thing. His company holds a variety of private and publicly traded businesses, spanning insurance, energy, railroads, and more. Collectively, Berkshire is a financial fortress. The company’s many businesses provide stable and diverse revenue streams, and the company is sitting on a whopping $167 billion in cash.
That means investors can rest easy knowing the company is built to last. Its $370 billion investment portfolio is flush with blue-chip stocks that continue to grow and pay dividends that pile up on Berkshire Hathaway’s balance sheet. It’s not just safety investors get with this stock; the shares have also trounced the broader market over time. There’s a lot to like here.
4. Bank of America
Mega-bank Bank of America (BAC 0.62%) is among the most significant holdings in Buffett’s portfolio at Berkshire Hathaway. Buffett bought shares in 2007, then sold them, but bought them back in 2017. Banks like Bank of America are arguably too big to fail if the 2008-2009 financial crisis proved anything to investors. In other words, their failure would cause catastrophic damage to the financial system, and so the government provides them with a backstop.
Buffett has Bank of America as Berkshire’s second-largest position today. The company grows with the U.S. economy and pays investors a solid dividend that yields 2.6% today. There’s always the risk of another economic catastrophe, which threatens all banks. But ultimately, it’s hard to deny Bank of America as a banking blue-chip investors can confidently buy and hold.
5. Public Storage
Real estate is one of the world’s oldest wealth-builders. Real estate investment trusts (REITs) like Public Storage (PSA -0.18%) enable investors to benefit from real estate without owning buildings. REITs must pay at least 90% of their taxable income, making them great dividend stocks. Public Storage yields 4.3% at its current share price. The company owns more than 3,000 properties across the U.S.
What’s excellent about Public Storage is that it can raise rent on units over time, which builds revenue growth into its business model. The industry is projected to grow by more than 7.5% annually through 2027, which bodes well for the company. Investors can buy and hold this blue chip, as real estate never goes out of style for long.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, and MercadoLibre. The Motley Fool recommends Nu. The Motley Fool has a disclosure policy.
I have a million dollars and I want to put it to work for me. Where can I put it to make the most amount of passive income from it? Also, how can I minimize taxes on that to be able to keep more of that money?
– Andrea
While today’s high-interest rate environment has been challenging in many respects, the silver lining is that investors seeking to earn passive income can do so more easily than they could at any point since the global financial crisis of 2007-2009.
Before laying out some options to capitalize on prevailing yields and considering the associated tax consequences, it’s helpful to evaluate your existing financial picture and ask yourself some important questions that will impact where you put the money. (A financial advisor can help you do both and this tool can help you match with one.)
Evaluate Your Financial Situation
Investing your $1 million dollars with an eye toward generating passive income may very well be the best option for this money. However, rather than viewing your decision in a vacuum, I would recommend looking at the money in the context of your broader financial situation and longer-term goals. In particular, it might be helpful to consider the following questions:
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Your total assets: Do you already have a portfolio of investments? Where are those assets located and what are their tax implications (e.g., IRA, Roth IRA, 401(k), brokerage account)?
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Your work status: How many more years will you have an income to add to your assets?
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Other income: Do you have any other sources of income (Social Security, pension, etc.)?
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Purpose for generating passive income: Are you retired and seeking to fund your ongoing expenses? Or is it to provide supplementary income while the rest of your portfolio continues to grow?
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Growth vs. income: Are you willing and/or able to sacrifice growth and preservation of purchasing power for the sake of income? If income is the only goal or need, then expectations for growth and your ability to maintain the purchasing power of the assets should remain low.
It is possible that after thinking through these questions you might pursue a different goal for the money. (And if you need more help assessing your financial situation, consider speaking with a financial advisor.)
Options for Generating Passive Income
Given the rise in interest rates since March 2022, income-oriented assets have become more attractive for those looking to earn a reasonable yield from their investments. Building a portfolio that includes a variety of assets capable of generating an aggregate yield is often a sound approach, as opposed to investing in a single product or security. While a financial advisor can help you build a robust portfolio, here are a few options to consider:
Money Market Funds
While generally considered an alternative to holding cash in a savings account, money market funds have become a popular topic among investors amid rate increases. Prior to the Federal Reserve’s recent series of rate hikes, money market yields were close to 0%, meaning you effectively earned no interest on your investment. Today, however, yields are closer to 5%, making this a much more compelling option for generating low-risk income.
Municipal Bonds
Municipal bonds are another solid option for income-focused investors. As with any investment, you’ll want to consider your goals before investing in municipal bonds since the risk profile and income potential will vary across securities. Evaluating credit ratings and maturities in relation to the yield you expect to earn in exchange for taking on credit and duration risk is a necessary step to take. Because they are typically not subject to federal taxes (or state taxes in the state where they are issued), municipal bonds tend to be a tax-efficient investment.
Certificates of Deposit
Like money market funds, certificates of deposit (CDs) have gained popularity as rates have increased. CDs can be particularly attractive if you do not need to liquidate the investment over its intended time horizon since you generally will pay a penalty for early withdrawals. It is therefore important to align a CD’s maturity date with the date at which you expect to need the money back.
Dividend Stocks
If you will need some growth to accompany the passive income your money generates, you may want to consider investing in dividend stocks. The S&P 500 High Dividend Index was paying a dividend yield in excess of 5% as of the end of September, making it competitive with other options listed. Unlike fixed-income products, dividend stocks will typically provide more opportunity for appreciation, which may help you maintain purchasing power over time if that’s a concern.
Other Options
Of course, there are additional options for generating passive income. These include Treasuries, high-yield bonds, master limited partnerships (MLPs), real estate investment trusts (REITs) and many others. Before committing to each, consider the level of risk you are able and willing to take, the amount of income you will need, and whether some element of growth is necessary. Also, evaluate the tax implications of the investments you choose. (And if you need more help evaluating and selecting investments, consider matching with a financial advisor.)
Mitigate the Impact of Taxes
Each of the options cited above is treated differently for tax purposes. The interest earned by fixed-income securities is taxed at ordinary income tax rates. Taxes on dividends from equity securities depend on how long you own the asset – qualified dividends are taxed at long-term capital gains rates while ordinary dividends are taxed at ordinary income rates. Appreciation from equity securities is taxed at capital gains rates.
It’s important to understand the tax treatment of individual assets since that will play a role in determining the type of account that holds these assets. Generally speaking, owning individual stocks and bonds, as well as their passively managed index alternatives, is more tax-efficient than actively managed mutual funds. Therefore, it’s typically advisable to own individual stocks, bonds and index funds in taxable brokerage accounts. Tax-advantaged accounts like IRAs and 401(k)s, and after-tax Roth IRAs, are generally more suitable for your actively managed funds and less tax-efficient securities like high-yield bonds.
Thinking holistically about the assets you own and where to allocate them will ultimately help you mitigate taxes. Of course, it can be helpful to speak with your tax advisor to better understand the impact on your individual situation, given your specific tax brackets. (Consider matching with a financial advisor with tax expertise.)
Bottom Line
Positioning your assets for passive income generation is a sound strategy, but only if it aligns with your long-term financial needs and goals. Before committing to this approach, critically assess your personal situation and the rationale behind seeking passive income. From there, you may consider various fixed-income products like bonds and CDs, as well as equity securities like dividend-paying stocks. Each option has its own tax consequences, and the type of account the securities are held in will also have an impact on taxes.
Tips for Generating Passive Income
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A CD ladder is one way to capitalize on today’s high-interest rate environment while also generating income. The strategy calls for opening multiple CD accounts, each with varying maturity dates. The idea is that you’ll always have a CD reaching its maturity date and paying out interest. Here’s a look at today’s CD rates.
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A financial advisor can help you decide which investments are most aligned with your financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Jeremy Suschak, CFP®, is a SmartAsset financial planning columnist who answers reader questions on personal finance topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.
Jeremy is a financial advisor and head of business development at DBR & CO. He has been compensated for this article. Additional resources from the author can be found at dbroot.com.
Please note that Jeremy is not a participant in the SmartAdvisor Match platform, and he has been compensated for this article. Some reader-submitted questions are edited for clarity or brevity.
Photo credit: ©iStock.com/Viorel Kurnosov, ©iStock.com/Sam Edwards
The post Ask an Advisor: I Have $1 Million and Want It to Work for Me. How Do I Maximize Passive Income and Minimize Taxes? appeared first on SmartReads by SmartAsset.
The crypto market has recently experienced a wave of liquidations, amounting to nearly $300 million, closely following Bitcoin’s sharp reclaim of the $67,000 mark.
This surge in Bitcoin’s value, a stark reversal from its previous downtrend, caught many traders off guard, especially those who had placed bets on the continuation of the market’s decline.
Over 80,000 Traders Faces Liquidation
The data provided by Coinglass sheds light on the magnitude of the liquidations, revealing that approximately 86,047 traders suffered losses exceeding $250 million within a mere 24-hour period.
Major exchanges like Binance, OKX, Bybit, and Huobi were the arenas for these significant financial setbacks, with Binance traders bearing the brunt of the liquidations.
Particularly, Binance recorded $128.7 million in liquidations, while other major platforms such as OKX, Bybit, and Huobi also experienced significant liquidations, amounting to $99.87 million, $33.18 million, and $17.70 million, respectively. Meanwhile, despite also facing liquidations, the smaller exchanges had a comparatively minor impact.
Most affected positions were short trades, reflecting a widespread anticipation of a market downturn that did not materialize as expected. Short positions recorded an estimated 57.55% of the liquidations, equivalent to $164.10 million, from traders betting against the market.
On the flip side, long position holders also faced their share of losses, contributing to nearly 40% of the total liquidations, amounting to $121.07 million.
Bitcoin Recovery And Future Prospects
The sharp recovery of Bitcoin, momentarily reclaiming highs above $67,000, has reignited interest in its market behavior and future trajectory.
Despite a 6.6% dip in its market capitalization over the past week, Bitcoin’s value saw a notable 6% increase in the last 24 hours, with its market cap presently sitting above $140 billion. This resurgence in trading activity, with daily volumes climbing from below $60 billion to heights above this mark, signifies renewed investor confidence and heightened trading interest.
Adding to the discourse, cryptocurrency analyst Willy Woo presents an optimistic outlook for Bitcoin, suggesting the possibility of a “double pump” cycle reminiscent of the market patterns observed in 2013.
According to Woo, this pattern could herald two significant price surges for Bitcoin in the coming years, with the first peak anticipated by mid-2024 and a subsequent, more substantial rise in 2025.
While such dual surge scenarios are rare, Woo’s analysis, based on current market conditions and Bitcoin’s growth potential, offers a glimpse into the future of the world’s leading cryptocurrency.
At the rate the #Bitcoin Macro Index is pumping, I wouldn’t be surprised if we get a top by mid-2024, which would hint at a double pump cycle like 2013… a second top in 2025. pic.twitter.com/i2a0V5ytPv
— Willy Woo (@woonomic) March 19, 2024
Featured image from Unsplash, 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.