CRYPTO INSIDER: Square officially has a 'bitlicense'
CRYPTO INSIDER: Square officially has a 'bitlicense'
Op Ed: The Rise of Cryptocurrency Securities Lawsuits
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Bitcoin Magazine, 1/1/0001 12:00 AM PST As the cryptocurrency market develops and grows, cryptocurrencies have become the subject of an increasing number of securities lawsuits. This year alone, more than 10 cryptocurrency securities lawsuits have been filed in federal district courts throughout the country. While regulations and laws governing the cryptocurrency market continue to develop, recent activity involving cryptocurrency has raised a host of questions concerning investor protections. As federal and state regulators and policymakers grapple with how to regulate digital currencies, some investors have sought protection through securities lawsuits. Based on the number of lawsuits filed to date and the recent decline in the price of cryptocurrencies, such litigation will likely increase in volume in the coming year. Investors should be aware of recent cryptocurrency case law to safeguard their rights and preserve their legal remedies. A selection of recent securities lawsuits against five cryptocurrency companies is highlighted below to illustrate some of the typical cases in which investors have found reason to pursue legal action against cryptocurrency companies. Longfin: Precipitous Drop in Stock Value After DisclosureLongfin Corp., a global cryptocurrency company, was a “pure stock scheme.” On April 9 and April 19, 2018, two classes of investors sued Longfin and its top officers for allegedly violating Sections 10(b) and 20(a) of the Securities Exchange Act. The investors allege that Longfin misrepresented the location of its primary offices and the identity of key employees in its public statements; had numerous material weaknesses in its operations and internal financial reporting controls; and was ineligible for inclusion in certain stock indices. The investors allege that when this information was made public, Longfin’s stock value declined more than 86 percent in two weeks. The investors are attempting to recover damages associated with the decline in stock value. Takeaway: This case is an example of a cryptocurrency company’s shares plummeting after company executives disclosed financial information to the public. Prospective investors should be wary of giving too much credibility to unsubstantiated statements made by cryptocurrency companies and should be selective when determining the trustworthiness of sources. Nano: Danger of Foreign Exchanges and HacksNano, a U.S.-based blockchain developer and cryptocurrency issuer, was involved in a hack scandal. On April 6, 2018, a class action was filed against Nano and its key officials for allegedly violating federal securities laws. The complaint alleges that Nano engaged in an unregistered offering and sale of securities by issuing cryptocurrencies on BitGrail, an Italian cryptocurrency exchange, in violation of Sections 12(a) and 15(a) of the Securities Act. The complaint also alleges that Nano wrongly encouraged investors to invest assets with BitGrail, which lost $170 million worth of the cryptocurrency “XRB” due to a hack on the exchange platform. The investors are asking for, among other relief, rescission of their investments. Takeaway: This case is noteworthy because it illustrates the vulnerabilities of cryptocurrency exchanges and their susceptibility to theft. To protect cryptocurrency investments from possible hacks and cyber theft, investors should take a number of precautionary measures, including closely examining where funds are being held and inquiring about the security controls in place to prevent potential hacks. Giga Watt: Mismanagement AllegationsGiga Watt, a U.S.-based cryptocurrency startup, was a promising venture that was arguably mismanaged by its founder. On March 19, 2018, an investor sued Giga Watt for allegedly violating federal and state securities laws by selling cryptocurrency investments without registering those investments with regulatory entities. The investor alleges that he invested more than $500,000 in the Giga Watt ICO with an expectation that his investment would increase in value, but Giga Watt “pocketed for themselves large sums of money for their promotional efforts,” resulting in his not receiving “any meaningful return on his investments.” He is suing to rescind his investments and impose a constructive trust over the assets that were collected by Giga Watt. Takeaway: This case is important because it highlights how investors who find out after the fact that a cryptocurrency company founder has mismanaged funds may pursue legal action against the company. Investors may also protect themselves from potential mismanagement of their investments by researching company governance and only investing in companies whose managers have a proven business track record. Investors should exercise caution if company managers lack experience or knowledge or if an ICO fails to disclose the identity of company managers. Bitconnect: Investors Allege ScamDisgruntled investors allege that Bitconnect, a U.K.-based cryptocurrency company, implemented a classic Ponzi scheme. Three lawsuits have been filed this year against Bitconnect for allegedly violating federal securities laws by engaging in the offer and sale of unregistered securities and other unlawful conduct. Most recently, on February 7, 2018, a class action lawsuit was filed against Bitconnect and key officers for allegedly violating various provisions of the Securities Act and the Securities Exchange Act. The investors allege that Bitconnect operated a Ponzi scheme to cheat thousands of investors out of millions of dollars. The investors allege that they were scammed by Bitconnect after being guaranteed monthly returns of up to 40 percent only a month before Bitconnect collapsed. Furthermore, they allege that after the site was shut down, the cryptocurrency lost more than 90 percent of its value, and they are seeking damages and equitable relief. Takeaway: This case is significant because it serves as a cautionary tale for investors who are promised high monthly returns from companies that do not actually perform legitimate business activities. Investors evaluating an ICO should be wary of red flags for scam cryptocurrency investments, including insufficient detail on how the technology operates and the viability of the technology over time, the history of team members involved in the project, and the legitimacy of the venture itself. Paragon Coin: Aggressive Marketing ClaimsParagon Coin, a cryptocurrency startup invested in the marijuana industry, is an example of a heavily marketed cryptocurrency ICO that promised high investment returns without delivering results. Paragon Coin drew attention to its ICO with celebrity endorsements, including endorsements by rapper The Game and by its founder former Miss Iowa Jessica VerSteeg. On January 30, 2018, a class action lawsuit was filed against Paragon Coin, Inc., for allegedly violating Sections 12(a)(1) and 15(a) of the Securities Act by failing to register its ICO as a securities offering. The complaint alleges that “Defendants marketed the Paragon ICO as offering a path towards legalization of cannabis,” but in fact, “the Paragon ICO was simply a method for Defendants to raise capital in order to purchase real estate investments.” The class seeks, among other relief, rescission of investments and compensatory damages. Takeaway: This case is significant because it illustrates the lure that celebrity endorsers, social media and marketing statements can have on investors. Investors should look beyond the hype generated by celebrity endorsements and aggressive marketing campaigns and consider the risks of would-be attractive investments. The Future of Cryptocurrency Securities LawsuitsAs these cases illustrate, investors are increasingly turning to litigation to pursue their legal rights following failed cryptocurrency investments. Given the wide fluctuations in the price of cryptocurrencies and the recent precipitous drop in value, the lawsuits discussed above are only the beginning wave of securities lawsuits filed relating to cryptocurrencies. By heeding the lessons gleaned from these securities lawsuits and exercising due diligence before investing in cryptocurrency, investors may protect their investments against loss, theft, scams and other risks associated with cryptocurrency. First, investors should be wary of giving too much credibility to unsubstantiated statements made by cryptocurrency companies. Second, investors should take precautionary measures to protect their cryptocurrency investments from possible hacks and theft. Third, investors should protect themselves from potential mismanagement of their investments by researching company governance and only investing in companies whose managers have a proven track record. Fourth, investors evaluating an ICO should be wary of red flags for scam cryptocurrency investments. Fifth, investors should look beyond celebrity endorsement buzz and aggressive marketing campaigns when evaluating potential investments. Whether investors in these lawsuits will prevail remains to be seen, but, based on the allegations in these complaints, investors should always be cautious and perform their own due diligence before deciding where and how to allocate their funds. This is a guest post by Craig Weiner and Chelsea Walcker. Views expressed are their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine. This article originally appeared on Bitcoin Magazine. |
Updated Edition of Blockchain Revolution Fills In Some Big Gaps
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Bitcoin Magazine, 1/1/0001 12:00 AM PST “When Blockchain Revolution came out, bitcoin was worth around $7 billion. Today, it’s more than twenty-two times that. Bitcoin is the workhorse of the cryptocurrency world and the cryptocurrency that launched a thousand ships.” So reads part of the preface in the newly-released second edition of Blockchain Revolution by the father-and-son team of Don Tapscott, founder and executive chair of the Blockchain Research Institute (BRI), and Alex Tapscott, founder and CEO of NextBlock Global, a digital asset company. The first edition of Blockchain Revolution, published in May 2016, has been translated into 15 languages, is a bestseller in five Asian languages and remains Amazon’s number one selling book about blockchain technology. Two years in the crypto world is a lifetime, so there’s lots of catching up to do in the second edition which contains a lengthy preface with plenty of new material, including information about tokens (utility, security, natural asset and commodity), a who’s who of the crypto world, leading companies in the space, instructions for leading crypto companies and their managers, and the “leadership of nations.” Predicting a rosy future for bitcoin, the new edition notes that bitcoin’s impact on culture and the economy in the last two years has been “extraordinary” and points out that the remarkable price rise since 2016 means bitcoin has become an asset class too big for investors to ignore. The attitude on the part of banks has changed since 2016 when blockchain “good,” bitcoin “bad” was the dominant ethics. Now even Goldman Sachs and JP Morgan are getting into the cryptocurrency market. Noting bitcoin’s continuing success, the authors say: “With the launch of the Lightning Network and other scaling solutions in 2018, bitcoin may also fulfill the promise of its most ardent supporters and obliterate the need for traditional financial intermediaries.” Top 10 Crypto “Leadership” CountriesThe new second edition names 10 “leadership nations” who are best placed to lead the blockchain revolution and build the new innovation economy. Alphabetically the countries are: Australia, Canada, China, Dubai (United Arab Emirates), Estonia, Singapore, Sweden (Stockholm and the “Node Pole”), Switzerland (Zurich and Zug), United Kingdom (London) and the United States (New York City and Silicon Valley). Each country is briefly assessed with suggestions on how to move forward. Silicon Valley’s important role is noted, but the authors also say that since blockchains are decentralized by design, it may be that a cross-border collaboration is more likely in the future, rather than being dependent on one or two dominating hubs. Seven “conditions for success” in developing a blockchain hub are described: Incubators and Entrepreneurship, Corporate Leadership, Educational Institutions, Investment Climate, Government Support, Regulatory Environment and Communities of Talent. The authors also describe Ethereum’s meteoric rise since 2016, from newly created startup to platform with a market value of $70 billion today. They also examine some of the new platforms built on the Ethereum blockchain and the current work around identity DApps. ICOs and tokens were not part of the cryptocurrency landscape of two years ago, so they are explained in detail, as is the ongoing development of smart contracts. _________________________________________________________________ QUOTES FROM BOOK “When Blockchain Revolution came out, bitcoin was worth around $7 billion. Today it’s more than twenty-two times that. Bitcoin is the workhorse of the cryptocurrency world and the cryptocurrency that launched a thousand ships.” “Bitcoin has become a store of hundreds of billions of dollars of value on the most robust computer network ever formed…” “With the launch of the Lightning Network and other scaling solutions in 2018, bitcoin may also fulfill the promise of its most ardent supporters and obliterate the need for traditional financial intermediaries.” xxxi “We believe that this next era could be inspired by Satoshi Nakamoto’s vision, designed around a set of implicit principles, and realized by the collaborative spirit of many passionate and equally talented leaders in the community.” This article originally appeared on Bitcoin Magazine. |
BitLicense #7: New York Grants Another License to Bitcoin App Square
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CryptoCoins News, 1/1/0001 12:00 AM PST Days after granting its sixth-ever BitLicense to cryptocurrency wallet Xapo, New York has approved fintech startup Square to operate in the state, enabling its users buy and sell bitcoin. The New York Department of Financial Services (NYDFS) announced on Monday its formal approval of Square’s application for a virtual currency license, also known as ‘BitLicense’. … Continued The post BitLicense #7: New York Grants Another License to Bitcoin App Square appeared first on CCN |
Crypto-Loving US Senate Candidate Forced to Return $130,000 Bitcoin Donation
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CryptoCoins News, 1/1/0001 12:00 AM PST US Senate candidate Austin Petersen received a $130,000 bitcoin donation but was forced to return it due to federal regulations governing campaign contributions. Petersen, a Republican who is hoping to unseat incumbent Missouri Sen. Claire McCaskill during the mid-term election in November, said that an enthusiastic supporter attempted to donate $130,276 worth of bitcoins (~20 The post Crypto-Loving US Senate Candidate Forced to Return $130,000 Bitcoin Donation appeared first on CCN |
Square is rallying after obtaining a bitcoin license in New York (SQ)
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Business Insider, 1/1/0001 12:00 AM PST
Shares of Square spiked about 1.3% Monday morning after the company said it had obtained a New York State license to let customers buy and sell bitcoin through its Cash app. The payments company, founded by Twitter CEO Jack Dorsey in 2009, has supported bitcoin since January, when it first launched support for the cryptocurrency in certain states. Square is the ninth firm to receive a "bitlicense" from New York's department of financial services, Reuters reported. So far, Square's venture into crypto seems to be working out. In its most recent earnings report in May, the company said it made a $200,000 profit from bitcoin in the first quarter thanks to price fluctuations from the volatile cryptocurrency. Today's announcement is just another step forward in Square's fight against Venmo to be the go-to payments app, one Wall Street analyst told Business Insider. "Something like this could accelerate the pace of downloads and let the Cash app be more entrenched," Dan Dolev, an analyst at Nomura Instinet, said in a phone interview. "It's a win-win and another positive step forward for Square." Shares of Square are up 80.5% this year. The price of bitcoin, on the other hand, has fallen 52%.
SEE ALSO: Square made $200,000 trading bitcoin (SQ) Join the conversation about this story » NOW WATCH: The world is running out of sand — and there's a black market for it now |
Square is rallying after obtaining a bitcoin license in New York (SQ)
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Business Insider, 1/1/0001 12:00 AM PST
Shares of Square spiked about 1.3% Monday morning after the company said it had obtained a New York State license to let customers buy and sell bitcoin through its Cash app. The payments company, founded by Twitter CEO Jack Dorsey in 2009, has supported bitcoin since January, when it first launched support for the cryptocurrency in certain states. Square is the ninth firm to receive a "bitlicense" from New York's department of financial services, Reuters reported. So far, Square's venture into crypto seems to be working out. In its most recent earnings report in May, the company said it made a $200,000 profit from bitcoin in the first quarter thanks to price fluctuations from the volatile cryptocurrency. Today's announcement is just another step forward in Square's fight against Venmo to be the go-to payments app, one Wall Street analyst told Business Insider. "Something like this could accelerate the pace of downloads and let the Cash app be more entrenched," Dan Dolev, an analyst at Nomura Instinet, said in a phone interview. "It's a win-win and another positive step forward for Square." Shares of Square are up 80.5% this year. The price of bitcoin, on the other hand, has fallen 52%.
SEE ALSO: Square made $200,000 trading bitcoin (SQ) Join the conversation about this story » NOW WATCH: This top economist has a radical plan to change the way Americans vote |
Is Bitcoin Going to Crash the Internet? These Experts Think So.
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Entrepreneur, 1/1/0001 12:00 AM PST The amount of computing power the cryptocurrency requires is just one concern the Bank of International Settlements raises in a new report |
The world's hottest tech companies are now worth more than some major stock markets, and they could be pointing out the next big bubble
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Business Insider, 1/1/0001 12:00 AM PST
Here's your stat of the day: eight tech companies are worth more than the stock markets of Japan and the entire eurozone. The companies make up what Wall Street has abbreviated to FAAMG + BAT: Facebook, Amazon, Alphabet, Microsoft and Google (or Alphabet) on the left, and the Chinese tech companies Baidu, Alibaba, and Tencent. As of June 12, they had a combined market capitalization of $5 trillion, according to data compiled by Bank of America Merrill Lynch.
This ballooning in size has equally led to concern that investors are too optimistic on the future earnings power of big tech companies. BAML's monthly survey of fund managers around the world shows that for most of the past year, the "most crowded trade" has been betting on tech stocks. A recent survey showed the most crowded was thought to be "Long FAANG + BAT," while "Long Nasdaq" became a concern in the second half of last year. The vote for the most crowded trade was briefly "long bitcoin" just before the cryptocurrency peaked above $19,000 in December. Without declaring that we're seeing another tech bubble, Michael Hartnett, the chief investment strategist at BAML who published the chart above, recently listed this "fat" market cap stat as one of 10 reasons why investors should be pulling money out of tech stocks. Another reason, Hartnett said, was that tech and e-commerce companies accounted for nearly a quarter of US earnings per share, a "level that is rarely exceeded, and often associated with bubble peaks." Indeed, no sector dominates global stock markets like tech does. The MSCI USA Index of over 600 companies is driven by technology companies, which make up 27%. And on the top-10 list of the largest companies in the world, Berkshire Hathaway and Exxon are the only outliers sector-wise. Tech comes out on top in other ways you could slice the data, particularly in the US. But it's the near uniformity in opinions on big tech stocks that could continue to reap gains for investors — or catch them off guard. Only five out of 199 analyst ratings on FAAMG stocks say "sell, according to Bloomberg data. There are no "sell" recommendations for Apple or Amazon. SEE ALSO: Wall Street is firing a warning shot on red-hot tech stocks, and many investors don't see it coming Join the conversation about this story » NOW WATCH: Learning to celebrate failure at a young age led to this billionaire's success |
What you need to know on Wall Street today
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Business Insider, 1/1/0001 12:00 AM PST Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox. Wall Street experts are crying foul on an overlooked yet dangerous signal that a market meltdown is near It seems as if every time Joseph Harvey opens The Wall Street Journal, he's presented with a fresh batch of signals that the current market cycle is nearing its conclusion. Speaking at last week's CIO Global Forum in New York, hosted by UBS, Harvey — the president and chief investment officer at Cohen & Steers — told the room of attendees that he had been increasingly bombarded with red flags, even with the equity bull market plowing ahead into its ninth year. One recent story that caught his eye addressed the rapid surge in leveraged-buyout, or LBO, activity, which is on pace to have the highest dollar volume since 2007, according to Dealogic. To him, this type of activity — which involves borrowing a bunch of money to buy companies and is frequently done by private-equity firms— is a glaring late-cycle warning. And while Harvey acknowledges he has no idea when the inevitable downturn will strike, he's doing what he can to withstand the turbulence. Q&A with Barclays' new head of prime sales Many Wall Street banks experienced stellar equities performance in the first quarter amid volatility spikes and increased client trading. Industrywide, equities revenue rose 28% during the period, according to research from Keefe, Bruyette & Woods. But no bank grew more precipitously than Barclays, which saw its equities revenues shoot up 43%, to $827 million, compared with $577 million in the first quarter of 2017, with derivatives and financing leading the way. While many of Barclay's senior positions were filled through external hires in the months since Stephen Dainton joined as global head of equities in August, the bank this spring made an internal promotion for a key role: its head of prime brokerage sales in the Americas, which is now led by Betty Gee, a rising star who joined the bank in 2016 as its head of strategic consulting within that same division. The firm's prime brokerage business — the group that provides financing and other services to hedge funds — is a crucial component to turning the ship around and winning back market share in the $42 billion equities industry, Gee told Business Insider in an interview at Barclays' midtown Manhattan headquarters. JPMorgan poaches a star equities trader from Goldman Sachs JPMorgan has hired Borzu Masoudi from Goldman Sachs as a trader on its US index flow trading desk, according to a person briefed on the appointment. He'll replace David Kim, who left for Bank of America last month, the person said. Masoudi, a vice president, is seen as a rising star in the world of equity derivatives, according to a recruiter with knowledge of the industry. He was also part of the team which allegedly made more than $200 million in profit in one day earlier this year.He's expected to join the New York-based bank in August after spending a little more than a year at Goldman, according to his LinkedIn profile. He spent the majority of his career at Deutsche Bank. Mike Novogratz hires a former wrestling champ to head up his crypto-bank's trading desk Bitcoin king Mike Novogratz has poached a former Wall Streeter to lead his crypto firm's trading operations, according to a person familiar with the matter. The hedge funder turned crypto-enthusiast has been building out Galaxy Digital, a crypto-merchant bank that will invest and trade crypto. Galaxy has four business lines, including asset management, trading, advisory, and principal investing. Yoshi Nakamura, a former director at Citi within its institutional equities sales team covering hedge funds, has joined the firm as head of sales for the firm's trading division, which oversees Galaxy's prop trading, over-the-counter trading, and market making business.
In markets news
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Early Bitcoin Developer Jeff Garzik Launches New Altcoin ‘Metronome’
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CryptoCoins News, 1/1/0001 12:00 AM PST Jeff Garzik, one of the earliest Bitcoin developers, has formally launched an altcoin, dubbed Metronome, which backers allege will be the first cryptocurrency to offer “institutional class” endurance. Metronome had first been announced by Bloq, Garzik’s blockchain development firm, back in Oct. 2017, when the cryptocurrency market was in the early stages of a parabolic … Continued The post Early Bitcoin Developer Jeff Garzik Launches New Altcoin ‘Metronome’ appeared first on CCN |
Early Bitcoin Developer Jeff Garzik Launches New Altcoin ‘Metronome’
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CryptoCoins News, 1/1/0001 12:00 AM PST Jeff Garzik, one of the earliest Bitcoin developers, has formally launched an altcoin, dubbed Metronome, which backers allege will be the first cryptocurrency to offer “institutional class” endurance. Metronome had first been announced by Bloq, Garzik’s blockchain development firm, back in Oct. 2017, when the cryptocurrency market was in the early stages of a parabolic … Continued The post Early Bitcoin Developer Jeff Garzik Launches New Altcoin ‘Metronome’ appeared first on CCN |
Bitcoin Miners in China’s Remote Regions are Undeterred By Restrictions
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CryptoCoins News, 1/1/0001 12:00 AM PST Though Chinese authorities have previously taken various measures aimed at curtailing the trading of cryptocurrencies, the mining of Bitcoin has continued unabated in some of China’s remote parts according to a Nikkei Asian Review report. These regions enjoy excess electricity supply capacity and are considered poor relative to the economic powerhouses of Beijing and Shanghai. … Continued The post Bitcoin Miners in China’s Remote Regions are Undeterred By Restrictions appeared first on CCN |
10 things you need to know before the opening bell (SPY, SPX, QQQ, DIA, JD, GOOGL, FB, DIS)
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Business Insider, 1/1/0001 12:00 AM PST
Here is what you need to know. Oil hits its lowest level in over 2 months. West Texas Intermediate crude oil has touched $63.59 a barrel, its lowest since April 10, as the OPEC cartel of oil producers mulls a production hike of up to 600,000 barrels a day, Bloomberg says. Wall Street experts are crying foul on an overlooked yet dangerous signal that a market meltdown is near. Wall Street pros have begun sounding the alarm on the exorbitant amount of leverage being used in the US market. Wall Streeters share the best parts of the market to own over the next year. Speaking at the UBS CIO Global Forum in New York on Thursday, a handful of Wall Streeters shared their top conviction ideas for the next six to 12 months. Bitcoin futures could be hurting bitcoin's price. Tom Lee, the cofounder of the research firm Fundstrat, says bitcoin could be vulnerable to manipulation because of the way its futures contracts are settled. Facebook quietly made a huge concession to shareholders as it aims to avoid another data disaster. The social-media giant has beefed up its audit committee to help monitor its social impact, privacy safeguards, and cybersecurity risk. Google takes a small stake in the Chinese retail giant JD.com. Google has made a $550 million investment as part of a strategic partnership in the Chinese e-commerce behemoth JD.com, giving it a stake of less than 1%, Reuters says. Audi's CEO has been arrested. The Munich prosecutor's office said in a statement that Audi CEO Rupert Stadler was arrested as part of "an investigation into diesel affairs and Audi engines," Reuters reports. 'Incredibles 2' has the biggest opening weekend ever for an animated movie. Disney/Pixar's "Incredibles 2" raked in an estimated $180 million over the weekend, according to Boxofficepro.com, as it easily surpassed "Finding Dory" ($135 million) for the biggest opening weekend ever for an animated movie. Stock markets around the world are lower. Japan's Nikkei (-0.75%) led the losses in Asia, and Germany's DAX (-1.02%) trails in Europe. The S&P 500 is set to open down 0.45% near 2,767. US economic data trickles out. The NAHB Housing Market Index will cross the wires at 10 a.m. ET. The US 10-year yield is down 1 basis point at 2.91%. Join the conversation about this story » NOW WATCH: This top economist has a radical plan to change the way Americans vote |
10 things you need to know before the opening bell (SPY, SPX, QQQ, DIA, JD, GOOGL, FB, DIS)
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Business Insider, 1/1/0001 12:00 AM PST
Here is what you need to know. Oil hits its lowest level in over 2 months. West Texas Intermediate crude oil touched $63.59 a barrel, its lowest since April 10, as OPEC mulls a production hike of up to 600,000 barrels a day, Bloomberg says. Wall Street experts are crying foul on an overlooked yet dangerous signal that a market meltdown is near. Wall Street pros have begun sounding the alarm on the exorbitant amount of leverage being used in the US market right now. Wall Streeters share the best parts of the market to own over the next year. Speaking at the UBS CIO Global Forum in New York on Thursday, a handful of Wall Streeters shared their top conviction ideas for the next 6-12 months. Bitcoin futures could be hurting bitcoin's price. Tom Lee, the cofounder of research firm Fundstrat, says bitcoin could be vulnerable to manipulation due to the way its futures contracts are settled. Facebook quietly made a huge concession to shareholders as it aims to avoid another data disaster. The social-media giant has beefed up its audit committee in an effort to monitor its social impact, privacy safeguards, and cybersecurity risk. Google takes a small stake in Chinese retail giant JD.com. Google has made a $550 million investment as part of a strategic partnership in Chinese e-commerce behemoth JD.com, giving it a stake of less than 1%, Reuters says. Audi's CEO has been arrested. The Munich prosecutor's office said in a statement that Audi Chief Executive Rupert Stadler was arrested as part of "an investigation into diesel affairs and Audi engines," Reuters reports. 'Incredibles 2' has the biggest opening weekend ever for an animated movie. Disney/Pixar's "Incredibles 2" raked in an estimated $180 million over the weekend, according to boxofficepro.com, as it easily surpassed "Finding Dory" ($135 million) for the biggest opening weekend ever for an animated movie. Stock markets around the world are lower. Japan's Nikkei (-0.75%) led the losses in Asia and Germany's DAX (-1.02%) trails in Europe. The S&P 500 is set to open down 0.45% near 2,767. US economic data trickles out. The NAHB Housing Market Index will cross the wires at 10 a.m. ET. The US 10-year yield is down 1 basis point at 2.91%. Join the conversation about this story » NOW WATCH: How to survive a snake bite |
Cryptocurrency Market Declines $5 Billion, Bitcoin Price Fairly Stable at $6,450
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CryptoCoins News, 1/1/0001 12:00 AM PST The cryptocurrency market has dropped by $5 billion over the past 24 hours, from $282 billion to $277 billion. Most major cryptocurrencies including Bitcoin have declined by 1 to 2 percent but did not demonstrate any major movement on both the upside and downside. Bitcoin and Ethereum outperformed the top 10 cryptocurrencies with a slight The post Cryptocurrency Market Declines $5 Billion, Bitcoin Price Fairly Stable at $6,450 appeared first on CCN |
Bitcoin Recovery Stalls Raising Risk of Price Drop
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CoinDesk, 1/1/0001 12:00 AM PST Bitcoin will likely drop below $6,000 this week, with bearish indicators still littering short- and long-term charts. |
Ripple Donates $2 Million to Texas University’s Blockchain Initiative
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CryptoCoins News, 1/1/0001 12:00 AM PST One of 17 institutions chosen for Ripple’s $50 million academic pledge, the University of Texas at Austin will receive $2 million from San Francisco-based industry giant Ripple. The McCombs School of Business at UT will receive $2 million from Ripple over the next five years to fund research at the institution’s Blockchain Initiative program, a The post Ripple Donates $2 Million to Texas University’s Blockchain Initiative appeared first on CCN |
Bitcoin futures could be hurting bitcoin's price
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Business Insider, 1/1/0001 12:00 AM PST
Bloomberg reports that Tom Lee, the cofounder of research firm Fundstrat, said in a note last week that bitcoin futures contracts could be behind bitcoin's recent "gut-wrenching" price declines. Lee said in his report that there is "significant volatility" in bitcoin's price around the expiration date of CME Group and CBOE futures contracts. CME Group and CBOE both launched bitcoin futures products in December when bitcoin was trading close to record highs around $20,000. Bitcoin has tumbled since then. Bitcoin is down 0.35% against the dollar to $6,438.56 as of 8.45 a.m. BST (3.45 a.m. ET) on June 18. Bloomberg reports that Lee wrote that traders who are long bitcoin and short futures could sell bitcoin during the price auction to cause the price to drop and leave their futures contracts "with a handsome profit." Lee's theory raises the prospect that bitcoin could be vulnerable to manipulation due to futures contracts. The CME and CBOE futures contracts are settled based on a price derived from auctions across several exchanges. However, many of these exchanges have relatively low liquidity, meaning that people could potentially manipulate the price by selling or buying significant sums of bitcoin during the auction. Business Insider highlighted the risk in December. John Spallanzani, the chief macro strategist at GFI Group, said he was concerned that low volumes on Gemini, one of the exchanges used to calculated price, could make it vulnerable to manipulation. "The lower the volumes, the easier to manipulate," he said. "Since the volume is low and [bitcoin] is unregulated it is conceivable." The Commodity Futures Trading Commission, which has oversight of bitcoin futures, is said to be involved in a US Justice Department probe into market manipulation of bitcoin. The precise nature of the probe is not clear at this time. Coinfloor, a UK-based bitcoin exchange operator, announced plans for a physically settled bitcoin futures contract in March. This is where holders of a contract are actually given the requisite bitcoin when the contract expires. CBOE and CME Group both give the cash value of bitcoin at the expiration of their contracts. Obi Nwosu, the CEO of Coinfloor, told Business Insider last week that the physically settled futures were a response to demand from Coinfloor's institutional clients who were concerned about the ease of manipulation of cash-settled contracts. Any price manipulation around auctions would be short-term and if investors take delivery of bitcoin at the expiration of a contract they can simply wait for the price to stabilise before selling it. DON'T MISS: The US has reportedly opened a criminal probe into market manipulation of bitcoin and other cryptocurrencies |
Russia's Largest Banks Are Piloting Bitcoin and Crypto Portfolios
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CoinDesk, 1/1/0001 12:00 AM PST Two of Russia's largest banks are planning to launch a cryptocurrency portfolio product for their private banking clients, Kommersant reported. |