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BackThis week in crypto: Fake financial system with fake money, Binance mines all of the bitcoin SV, Wirecard “loses” $2B worth of cash. Coinbase bank run – $200M worth of crypto has been withdrawn from the platform since the announcement of sharing data with the government.
Crypto Market News Highlights
[7:06] As Extreme Inflation Looms, Ripple CEO Brad Garlinghouse Says ‘Crypto Could Help Stabilize Markets’
No. No, it can’t. Kevin wished Brad was here to explain with all his infinite pre-mined wisdom, how crypto would stabilize the traditional market. Would people be selling all their crypto to buy into a market as it tanks? Or would they make so much money on an overly inflated traditional market, pumped by government money, and then use that money to buy crypto? Either of those doesn’t help stabilize the market.
And obviously we’re talking about inflation here. There is a misconception. Brad is likely referring more so to the US dollar. Kevin has heard the word ‘hyperinflation’ more than he ever would have liked to hear it in his entire life. Hyperinflation in the USD is not really possible. 8% of taxes in the US go to pay the US debts. Right now, that 8% still outweighs the debt. They still have a ways to go before that 8% gets hit. But they have access to 92% more of those taxes.
It’s an infinitely fake system, backed by infinitely fake money, that has power around the world because all central banks print and have infinitely fake money. Countries are either pegged to the US dollar, or tied to the US in some other way, whether that be through commodities currency, export currency, import currency — whatever their economy is tied to, they have great interest to make sure that the fictional economy continues.
So, long story short, Kevin thinks Brad is wrong here.
[10:30] WisdomTree Proposes ETF With 5% Bitcoin Exposure Despite SEC’s Long-Standing Blockade
Maybe WisdomTree thinks that if it has only 5% exposure then the SEC won’t care. The one thing that WisdomTree might have going for it, is that one of the reasons why ETFs weren’t approved, is because there was no real price discovery in this industry. There is no reliable price discovery. Why? Because there is no regulated broker-dealer that has been trading Bitcoin with some type of legitimate price discovery since its inception. Thus you have all OTC dealers, most of which are not regulated, pushing prices out, that no auditor would touch in terms of trying to figure out where the price discovery was, at what time, and what the real price was.
So, the fact that Bakkt has a bit more history, and Bakkt can probably be considered one of the only true price discovery mechanisms in the market, these guys might have a bit more of a shot.
Kevin’s thinking though is that this probably gets denied. Because the other side of that, aside from the price discovery, the SEC was really fixated on investor protection and similar things. All that stuff doesn’t come with regulation, but generally regulation should force it to happen. And thus without the regulation, the regulator is usually pretty hesitant to create more and more synthetics, or more and more additional ways for money to flow into an asset class, if they can’t fulfill their duty (which is supposedly to protect the end client).
[12:25] Coinbase users remove $200 million worth bitcoins over privacy concerns
This is because Coinbase bought out a company and made it public that they potentially want to sell a blockchain monitoring solution to the government.
Coinbase’s decision makes perfect sense in Kevin’s opinion. Not that Kevin doesn’t like his own privacy — but if you are transacting on a public blockchain, well… it’s a public blockchain. Whether you made that move or not, authorities could find out who you were, already.
Coinbase needs to diversify their revenue streams, and they’re not going to stop doing that. And most of that is going to be tied around data, which they have a ton of, as well as more institutional-like services.
But go ahead and leave Coinbase, and come to us. We have way better pricing, way better platform, and more features. You will be happier with us on every level.
Anyway, this goes to show how finicky retail clients are.
[14:07] Binance Is The Leading Miner of Bitcoin SV (BSV) Despite Delisting It in 2019
That’s a bit of a weird story. We could speculate why that is. Most people pulled out of BSV, so there are probably not many mining it. Binance has a lot of horsepower that they can mine with. Why not mine the thing that no one else is mining, so you can reap the bigger rewards, as long as the asset continues to have a value?
It does show that Binance kinda does whatever they want, and what they say to the public is usually not really what they think. They just say what the public wants to hear. Which is very common, lots of companies tow the line.
But it’s one thing to be genuine, and another to pander to your clientbase and say whatever you think you should say so that they’ll stick with you, even though inside the company, they really don’t believe what they’re saying.
This is a case of Binance saying one thing and doing something else for their own benefit.
[15:40] Thailand to Raise $6.4M With Sale of Blockchain-Based Bonds
This isn’t the first time a bond issuance has happened. There have been more than a handful now. The biggest one was around $50 million, sometime last year.
No one has done true end-to-end, from creation to issuance to primary to distribution to secondary and to settlement, cross-border real time. So when it comes to that Ignium/CSD setup along with CoinMetro in Montenegro, Kevin thinks we’re still going to see some sparks fly, considering the fact that we’re actually solving some problems, not just looking for some PR.
[16:33] Binance to Launch UK Trading Platform for Institutional and Retail Investors
Most of the stuff that Binance claims to be so “innovative” and “awesome”, we already have that on CoinMetro. Kevin has also been talking with two other people who own fiat onramps in the UK who were kinda worried about Binance. Kevin’s response was “don’t be worried about Binance —look at the regulated platforms using the Binance name, none of them do all that much volume”.
What this tells Kevin about the Binance parent, is three things:
Most traders on Binance wants to be as anonymous as they can be
With the low volume, evidently they don’t allow washtrading
Which leads to the fact that the volume is not real volume
Binance does a lot of internal warehousing/market making for their traders.
Kevin doesn’t think the cryptocompany should be quaking in their boots for Binance UK.
What it does say is that the UK is a big market. And a good market. And if you have a crypto business, you should be in the UK. It’s the second market they moved into after the US.
You can now deposit, withdraw, and trade crypto in GBP with CoinMetro!
[19:00] Popular crypto debit card issuer Wirecard is unable to locate $2 billion worth of cash
This is a surprising one. First of all, Wirecard does not issue crypto debit cards. There is no such thing as a crypto debit card. Except possibly Pundi X. That’s a crypto prepaid card. Wirecard is a debit card issuer.
Wirecard processes credit card transactions for merchants, and they also have a bank. For the CoinMetro debit cards, Kevin has talked with Wirecard on a few occasions. They are not the party that will be doing CoinMetro’s card program. But they are one of the biggest merchant transaction processors in the EU. They’re competing with BaaS solutions like Solaris Bank for example. This could potentially be a huge blow to them. But it’s possible that it’s less of a blow and more of a “we tried to hide moving money from one entity to another as a loan, and simply couldn’t back it up to the auditor”. Which wouldn’t necessarily be a great thing, but it wouldn’t be $2b worth of missing assets.
Kevin will like to see how this pans out, but it is definitely not news that a Wirecard customer would want to hear.
[20:48] 59% of Bitcoin (BTC) & Crypto Investors Get their News Via Telegram
That’s kinda scary. Almost 6/10 individuals using Bitcoin get their news through a medium that is basically full of memes. You could say that CoinMetro clients, a lot of them, get their news through Telegram — our CoinMetro news and opinions.
But if these guys get their crypto news from Telegram, that makes sense.
We invite you to join CoinMetro Updates and CoinMetro’s Community channels on Telegram!
[21:44] Tokensoft Teams With Signature Bank to Tokenize Real Estate
Signature Bank has something called “Signet” which is basically an onchain way of moving tokenized fiat between accounts. Lots of OTC desks, broker-dealers and crypto firms are on there.
These guys are probably looking to use that system in order to have faster settlement. In this industry, everybody loves to say “partner”. It’s like saying “CoinMetro partnered with Google since day one”. And in small letters below that, it would say “our emails are on Google servers”. That’s what happened all through the ICO days.
Kevin doesn’t know if it’s a true partnership. But Signature Bank is open to these things. If there is any type of partnership, it is due to the fact of faster settlement via Signet — their own blockchain for tokenized fiat — between Tokensoft and OTC providers of other platforms.
It is basically what Ignium and CoinMetro are about to do in real life. So, welcome to the ballgame guys.
Live Questions – CoinMetro updates and Cryptocurrency News Today
[30:15] Looks great on the TraM/Copy trading portfolio sizes. Are more traders being onboarded within near future, and is there external cash boarded along too?
Kevin had a meeting today with someone who potentially will be opening a TraM. They need some additional assets, and we are waiting for a list from them.
The investors in our previous fundraising is an organization with a membership of users. They’re interested in TraM. Once these current TraMs are getting more and more money, the word will get out.
Kevin remembers the first managed accounts in FXPig. As soon as one of those babies got close to a million, word went out and every manager was coming over to us and asking how to open an account. And Kevin expects nothing less here.
[51:00] Is CoinMetro prepared for a big influx of users?
Yes and no. We revamped a few things and are making some tweaks on accepted documents, the ratio of first-time passes, improvement of our bots, bringing on new staff, we already hired a new person. So we’re gearing up. But at the end of the day, we learn a bit more with each marketing test.
[54:27] Why hasn’t there been any PR for GBP launch?
It’s coming. We’re trying to streamline compliance with the service provider and make sure that the experience is as good as it can be, then we’ll launch the campaigns. Very shortly.
[55:25] How’s the mobile app progressing?
Going well. The app is supposed to be released towards the end of this month. And the app looks fantastically better than what we have now, with a lot more features, and we will be proud of the app.
CoinMetro Mobile is available both to iOS and Android.
[1:02:34] Do you think the CoinMetro bond will compete with XCM as a token on the platform?
No. Completely different.
Reddit Questions
[25:33] About the CSD/’Tangible‘ project… I assume you can purchase bonds directly from the issuer/custodian, so why would people sign up for CoinMetro? – International_Mix
Kevin is involved in all three companies, partial owner of Tangible with Evan. So, Kevin owns part of Ignium and part of CoinMetro. And has the unique ability to comment on all three, and also the unique position to try and do what’s best for all three companies.
If Kevin only owned CoinMetro and someone came from Ignium with the offer, then he would want to retain everything on CoinMetro’s side. So you are correct, potentially one could buy into the primary sale through Ignium. But when they want to go on the secondary market — Ignium doesn’t provide a secondary market. They’d have to go to CoinMetro, as it is the only connected secondary provider. At least initially.
Having said that, Ignium is geared more like B2B. Why? Most investors end up sitting at secondary market platforms. From the Tangible side, the marketing will be used to push people from Tangible’s website into CoinMetro. They won’t be pushing them into Ignium.
For future issuances, we will have a very visual marketplace for primaries. So even if they’re available at Ignium, they’ll also be available at CoinMetro. Our job there is just to be better than the Ignium platform. Better support, better this, better that.
Initially, many of these primary offerings may choose to only go through CoinMetro, without the ability to go through Ignium.
Learn more about the world’s first end-to-end tokenized security!
[47:15] How is the outcome of the test marketing? How many active traders? – XCM_hodl
Test marketing is going well. New tests are being performed on different landing pages and different funnels to push clients toward the main website.
[47:38] When will the continuous marketing begin? July? How much bigger in size will it be than the test Marketing? – XCM_hodl
The initial size isn’t going to be much bigger, but as revenue rolls in, that revenue will be immediately invested back into marketing. Snowball effect.
[48:45] How much impact in xcm price do you See with the bonds/Tangible coming? – XCM_hodl
It’s all about the number of clients. With the recent marketing test, we onboarded 7000 clients, many who came just for the bonus. But we saw XCM go from 2.2-2.3 to 4 cents. 100% increase almost. Just because of those clients. So it’s all about the numbers of clients and usage of the platform.
[23:41] “Kevin Explains Crypto” Term: Stochastic Oscillator
Now that you are up to date with crypto market news, let’s focus on crypto education.
Not a crypto term, but it is used for crypto trading. Oscillating means it moves. Up and down. Most of the time, talking about indicators, oscillators are there to show overbought and oversold conditions. The indicator is basically trying to take the close of a last candle/bar, and comparing it with the last X amount of bars. It uses that price data as an oscillating line instead of a messy chart.
When the oscillating bar is towards the bottom, it means that the price is low and the asset is probably oversold, comparatively speaking to the last X amount of candles.
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That’s a wrap for this week’s crypto market news with CoinMetro Founder Kevin Murcko! Please join us next week for more CoinMetro reports, Bitcoin news feed, Altcoin prices and Ethereum news! We’ll be live on CoinMetro’s Facebook and YouTube Channel at 12 PM (UTC). Make sure you submit your questions to the CoinMetro subReddit!
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