Fundamental Profitability Issues
We’re making today’s post free for all readers on Substack, to give you an idea of what you’re missing through the week… happy reading!
In the world’s most famous crypto bankruptcy, Cyprus Keeps FTX Europe License Suspended Until September (Cointelegraph) / Another Extension: CySEC Suspends FTX EU's License Until September (TradingView). Thus an arm of the SBF empire lies in suspended animation lest a buyer turns up, or, as is more likely the bankruptcy proceedings wind up all the dormant FTX entities.
In the debate about regulation, a fairly pragmatic approach by 2 Rutgers professors: Crypto's Counteroffensive Suits Underscore Need For Regulation (Bloomberg Law News). The problem is that it’s now April, a new regime will come in in January after a bruising election and even if Joe Brezhnev is re-elected, I am not convinced Gary Gensler remains as Chairman of the SEC while I think it’s almost impossible to see the rather discredited (on crypto matters at least) Chairman Behnam retaining office. Equally, the wildly pro-crypto remarks of several on the GOP side of both SEC and CFTC suggest they may be soon spruiking for crypto than staying in government. Thus we’re essentially at an impasse for pretty much the next year as of now, no matter what the courts decide. Of course, this is also why the crypto plan to buy the government (V2.0) is pushing ahead…
At the same time there is a worrying press release out from Stocklytics which states baldly: Bitcoin Mining Profitability Plummets By 75% In Just 3 Years…and this is ahead of the Bitcoin halving. In essence, the price of BTC has to soar if everybody is to make money.
On the more positive side, albeit it may be a moment for the more intrepid of the miners: Iraq Commitment To Capture Flare Gas Sparks Crypto Mining Speculation (Cointelegraph). You may recall how various parties in Canada and the US in particular have made decent returns from mining off the back of gas flaring.
Meanwhile, I have had somewhat of an epiphany about Stablecoins. Now buying stablecoins as an investment and thinking they are supremely safe strikes me as a fool’s errand as various such coins do not seem to be backed by entirely plausible / viable ‘paper.’ However, this deal can make sense in one major way: IOSG And Kraken Ventures Lead $7 Million Funding Round For Stablecoin Developer Usual Labs (The Block) which is the delivery of stablecoins as the new form of cross asset / cross border settlement tool. Here I think there is a winning app looming (I mean broadly, no one stablecoin dominating per se). To that end, a bipartisan development where U.S. Senators Lummis, Gillibrand Take On Stablecoin Legislation With New Bill (CoinDesk) is very encouraging. It’s a case of U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) tailoring a very narrowly focussed bill seeking to define how stablecoins – cryptocurrencies that maintain value with some other asset or currency – will operate in the U.S. This also ties into another investment in some way, where Germany’s Deutsche Boerse Group has moved towards digital guarantees: Clearstream To Invest In Digital Vault Services.
Still, in the digital money frame, Cointelegraph reports New Zealand Tests The Water On 'Digital Cash' Issuance.
In the world of crypto career paths, some departures and some arrivals, OKX 'OG' Execs Tim Byun And Wei Lan Leave Crypto Exchange (CoinDesk) while Cointelegraph reports broadly an upthrust in new staff being taken on: Reversing Layoffs Of 2022? Crypto Exchanges Are Adding Staff Members while Finextra notes specifically Crypto.com Makes Major Hiring Push. CoinDesk reports what sounds like another incremental move to clean up the Binance act after its swingeing fines last year, Binance.US Taps Former New York Fed Compliance Chief For Board Role.
Meanwhile, in a broader management view, Fortune reviews the top 7 folks to look at alongside founder / CEO Brian Armstrong: People Who Have Power At Coinbase.
Finally today a rather fascinating, thought provoking and potentially frightening story from Cointelegraph: Crypto-Like Communication Devices Could Break Gov't Surveillance — Telegram Founder.
From our sister publication, EI Weekend:
IPO-VID LIVESTREAM
NEXT WEEK TUESDAY: Season 24: Episode 02
IPO-VID Livestream 140
Guest: Chris Skinner
Tuesday, April 23, 2024: 1700 UK, 1800 CET, 1200 EST
"Do We Need Intermediaries?"
Best-selling author in both the technology and children’s book domains, Chris Skinner is an award winning independent commentator on financial markets and fintech through his daily blog, the Finanser.com, which is updated daily. He helped to found one of the first mobile banks in the world, and has advised CEOs and leaders from every continent of the world including the UN, the White House, the World Bank and the WEF. In 2023 he was recognised with a Lifetime Achievement Award by the Payments Association, the largest community in payments.
His latest book (eighteenth!) is Intelligent Money, which discusses the implications of Generative Finance as Artificial Intelligence takes over the world.
IPO-VID LIVESTREAM PODCAST
In the IPO-VID podcast episode #138, Patrick L. Young was joined by Urbana Corporation CEO & Director, Tom Caldwell.
Be sure to listen to the discussion with an acclaimed expert in securities exchange investment discussing "Exchanging Investments.
Now available from multiple different podcast sources:
EI WEEKLY PODCAST
FEX Global Offer Puts Australia In Play,
NASDAQ Seeks A New Formula For The Cloud,
There’s Talk Of Approval For An NSE IPO,
Gary Gensler’s Green Zeal Is Postponed,
LSE Investors Launch An ODD Pay Revolt,
& US T+1 Is Looming In < 30 Working Days.
VICTORY OR DEATH
20 years on from the first fintech bestseller “Capital Market Revolution!”… “Victory Or Death” is a must read book for anyone interested in the intersection of Blockchain, Cryptocurrency and FinTech as part of the whole future of finance.
*Paid link, as an Amazon Associate, Exchange Invest earns from qualifying purchases.
FINANCE BOOK OF THE WEEK
In response to reader’s queries, we have added a book of the week column to the EI weekend edition — interesting books pertaining to exchanges and markets, investment et al.
- Anybody can sign up for EI Weekend for free at ExchangeInvest.com.
This week’s book was written by our IPO-VID 118 guest & Arjan Capital Ltd MD, Andreas Schweitzer.
“Trade Works: The Trade Finance Investor” has a comprehensive glossary and a whistle-stop tour of the history of how finance can go wrong — and how to prevent it from happening again — making a tome to keep dipping into whenever you interact with trade finance..
Get the book here.
*Paid link, as an Amazon Associate, Exchange Invest earns from qualifying purchases.
Suggestions welcome if you would like to nominate a book for us to cover!
Our next Book of the week will be unveiled Saturday in the EI Weekend Edition.
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