On October 30, a famous crypto exchange Coinbase announced that it had raised over $300 million of investment to speed up the adoption of cryptocurrency. This fundraising round, namely the Series E, was led by Tiger Global Management, involving Y Combinator Continuity, Wellington Management, Andreessen Horowitz, Polychain and others.
The official statement specifies the main priorities:
creating a connection between fiat and cryptocurrencies;
listing more crypto assets;
apps for crypto (Coinbase Wallet);
Coinbase custody offerings.
The equity round helped the crypto exchange to reach $8 billion valuation, making it the crypto-first company globally. Recently, it has issued a commercial video, hoping that cryptocurrency will be able to become a hit in computer science and change the internet.
At Coinbase, we believe that cryptocurrencies and the technologies that power them represent a breakthrough in computer science that will change both the internet and the global financial system for the better. pic.twitter.com/soaFnatNoH
It may seem that bribery scandals and acquisitions cannot touch cryptocurrency industry, but that is not true. The recent announcement of Coinbase having listed Ripple’s XRP is a proof of it, since many crypto related people reckon Ripple bribed Coinbase. Let us see what happened.
On February 26, Coinbase Pro announced that XRP was available to trade. The platform provides more advanced services that the regular Coinbase. After listing XRP on Coinbase platform, the price on the tokens raised by 10 percent.
According to the report made by Dior in late February, Coinbase breached its rules to list XRP tokens. Moreover, the CIO of Altana Digital Currency Fund contacted with Elliott Suthers who is Coinbase’s communications’ director and asked some questions. He wrote
whether or not Coinbase asked for permission of either the Securities and Exchange Commission (SEC) or Commodity and Futures Trading Commission (CFTC). In addition, Suthers was asked whether there was a private deal between Coinbase and Ripple for listing XRP pairs.
Suthers answered that he was ready to discuss these things “off the record”, thus let people think that there was something illegal between Coinbase and Ripple.
In April 2018, Bloomberg published that Ripple offered Coinbase and Gemini platforms to list XRP tokens for $100 million in XRP and $1 million correspondingly. Even though the CEO of Ripple refused all the accusations, but rumours cannot just appear from nowhere. It makes us think what if Miguel Vias or any other Ripple’s representative is hiding the truth. It is also quite suspiciously that the company which was embroiled in different lawsuits of insider trading surrounding its Bitcoin Cash listing, did not get anything from listed XRP.
What about you? Do you believe in Ripple’s Executive’s words?
The California-based online financial company SoFi plans to cooperate with Coinbase to launch cryptocurrency trading on its platform in Q2 of 2019.
Social Finance Inc., abbreviated as SoFi, plans to add a new feature to its platform – cryptocurrency trading, to allow its customers buy and sell crypto anywhere they want. This function will be backed by Coinbase exchange, one of the biggest crypto exchanges in the world with its value of $8 billion. The date of the launch is still unknown, but supposedly it will come out in Q2 of 2019.
According to the CEO of SoFi, Anthony Noto, people nowadays are willing to know more about crypto, in particular, its rate. He stated:
“Our target audience wants to see what the price of cryptocurrency is, and to buy it. They have a desire to do that and in many cases they already are.”
Unfortunately, he did not mention the details of available digital coins, but their transactions will be conducted by Coinbase, it also provides the ability to follow prices, buy or sell digital assets.
Crypto trading will be led by SoFi Invest, while SoFi Money will enable an Annual Percentage Yield (APY) cash account with no fees. The former is a newly-opened branch of SoFi which provides different options. The branch allows users to trade shares from the app on their device. Moreover, there are no management and even transaction fees, yet, some fees involving trading stocks are still charged.
The SoFi company has also announced that they will not file for IPO this year, as it is not their biggest priority. Though in long-term perspective, an initial public offering is still on the roadmap. The current worth of SoFi is $4.4 billion with having raised about $1.9 billion up to now.
Coinbase itself has not made any official statements yet, therefore, we just have to wait and see. But for now, we remind you that at the end of the 2018, Coinbase transferred significant share of its funds onto a cold wallet, where the money is being stored safely.
Financial technologies have been rapidly evolving during the last couple of years. In 2018 alone, the industry raised the funds in the amount of 12.4 billion. That is why this is a golden niche for companies to develop and startups to grow.
Recently, Forbes came out with a compilation of the most thriving companies in the fintech industry that have the most potential. We have already mentioned the rating briefly. Today we will present to you three companies that we found appropriate in a bit more detail.
Coinbase is a cryptocurrency exchange, based in San Francisco. It offers exchange services between BTC, ETH, LTC, BCH and ETC and fiat currencies in 32 countries all over the world. Transaction and storage of Bitcoin is available in 190 countries.
The company is actively expanding by purchasing startups, creating new services for its customers and creating new trading pairs.
Ripple Labs is another fintech giant, also from San Francisco. It is a cryptocurrency platform which specializes in payment and exchange protocols, as well as cross border transactions. The platform supports tokens backed up by fiat currencies, cryptocurrencies, exchange goods etc.
The Ripple technology is widely used by major financial and industrial establishments all over the world, one of the being American Express.
Moreover, the Ripple token XRP was one of the most successful coins in the rating during the crypto price collapse.
Circle is a Bitcoin startup, backed by a major bank Goldman Sachs, located in Boston,
Massachusetts. Nowadays, it has evolved into a global fintech company which offers four main products: Circle Trade, Circle Invest, Circle Pay and its recent addition – the crypto exchange Poloniex.
Thirty people have filed complaints to Thailand’s Technology Crime Suppression Division stating that they were victims of crypto mining scam, they allegedly lost 42 million baht ($1.34 million). The police thinks that the amount of victims can be bigger.
According to the victims’ words, the leaders of the scam convinced them to invest money into CryptoMining.Farm, a blockchain-mining website. One anonymous victim said to the Bangkok Post that one of the leaders promised investor an impossibly high return – 70% a year.
The victims signed contracts when they entered the website, the documents said that a customer may withdraw money at any time he/she wanted without any additional condition. However, the situation has changed since August. The victim stated that:
“From August the owner began imposing conditions for withdrawing the money. Then at the start of this month, the site announced it would start paying back investors in 84 installments which would take over seven years to complete. The payments were supposed to be made in foreign currencies [which] is not permitted by Thai laws.”
After a preliminary investigation, the police is sure that not 30, but 140 people became victims of the scam. Moreover, it can be related to a big scandal which happened in August 2018, when a popular Thai actor and his siblings stole about 797 million baht ($25.5 million).
According to the Bangkok Post, the company has two official offices in Bangkok and Chiang Mai, which may make the victims think that the company’s operations are legal.
Thailand treats digital money with caution and tries to regulate it. The Thai Ministry of Finance even issued a document last year where all the country’s cryptocurrency activities were regulated, including the taxation of participants of crypto market.
Cryptocurrency exchanges work on the same principle as traditional exchanges. Potentially, it is possible to earn very good money on these platforms, but for this, it is needed to be able to correctly read the cryptocurrency coin chart. Of course, in order to become a professional trader, it needs to learn and practice a lot, but if your goal is to understand the basics, this article will be an excellent starting point in the exciting world of trading for you.
There are a huge variety of different charts, but the most common is the “Candlestick chart”. The chart is a much more informative tool than digital or text analysis. Using graphics, it is possible to quickly navigate and understand the current mood of the crowd, as well as the balance of power between sellers and buyers of a particular asset. Based on the obtained data, it is possible to calculate the potential profitability or unprofitability of a particular deal.
1. The main types of stock charts
As it was mentioned above, there are a huge number of different types of charts, but the main ones are lines, bars, and candlesticks. All of these tools (with the exception of the line charts) can tell about:
price at the beginning of the selected period (1 minute, 5 minutes, 15 minutes, 1 hour, 1 day, 1 week, etc.);
price at the end of the selected period;
the minimum and maximum rate of the selected period.
By and large, the crypto chart clearly shows the history of the struggle between bulls and bears. In the process of this confrontation, a large number of deals are made. It should be understood that even a slight fluctuation of the price means that some have already earned on it, while others, on the contrary, have suffered losses.
2. “Candlestick chart”
Let’s take a closer look at the most common version of charts, namely “Candlestick chart”. It was invented almost 400 years ago by a rice seller from the country of the Rising Sun. The process of observing a line chart is not entirely convenient; for this reason, the construction of “Candlestick chart” is based on the principle of dividing the total time into specific periods. This principle helps to quickly navigate what is happening on the market and, accordingly, to give the Bitcoin trend prediction or any other financial asset forecast.
3. How to read the chart “Candlestick chart”?
One candle represents the range of prices for an asset for a certain period of time. The boundaries of the candle are the lowest and highest asset price in this period of time. If the candle`s color is green, this means that the asset has increased in value over a given period of time; if it is red, then, on the contrary, it has fallen.
If you look closely at the above chart, you will notice:
the candle corresponds to the time interval – 60 minutes;
the minimum asset price was $3485,24;
the maximum asset price was $3733.58;
This hour began with a price of $3506,42 and ended with the price of $3687 (for this reason, the candle is green).
The main parameters that should be paid attention to when reading cryptocurrency charts are:
By and large, the entire analysis of charts is an ordinary calculation of the balance between supply and demand. It is possible to estimate the level of the strength of bulls or bears through the asset price (vertical axis) and the volume of transactions (horizontal axis). These skills allow experienced traders to take the right position in advance and earn money on any price movement.
In this article, we talked about how to read cryptocurrency charts. As it was mentioned above, there are a huge number of different types of charts, but the most popular and often used is the option “Candlestick chart”. The basic principle of this type of charts is to divide the time into certain periods. It is quite informative and easy to read. If you want to start trading, then you definitely need to get a deeper understanding of this topic.
Another week has passed, yet Bitcoin still shows quite plain dynamics on the graphics. In fact, its price has not changed significantly since January 10th. Bitcoin price is $3459 at the time of writing.
Since Bitcoin’s price has recently stabilized, many institutional players began changing their attitudes towards cryptocurrency, let us see what the representatives of global companies think.
The Global Market Strategist at JPMorgan, Nikolaos Panigirtzoglou, reckons that due to Bitcoin’s stagnation many big players will return to the industry. The volatility has “calmed down” and it means that investors can give Bitcoin second chance. He also said:
“The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future. The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”
In his interview to CNBC, he stated that the cryptocurrency could not grow, because it was not regulated, but now the situation can differ.
Wall Street research firm, Fundstrat Global Advisors, is sure that the cryptocurrency may see new lows soon.
“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows,” Robert Sluymer, the spokesman of Fundstrat, said.
In addition, Sluymer stated that the price can vary from $4200 to $3100 or ever lower. If it suddenly hits more than $4000, it would mark a 25% increase over today’s prevailing prices. However, Robert emphasized that the technical fundamentals of Bitcoin remain weak, so the price can have downward tendency to the price mark of $3100 or even lower – $2700. The representatives of Fundstrat have also suggested that 250 small-cap coins are at risk, as they all are vulnerable to market jumps.
There are some reasons why Bitcoin price may fall down:
Lunar New Year. During this period, Asian traders have relatively weak activity which may bring consequences to Bitcoin’s rate. The unofficial holidays will last till February 19.
Uncertainty with the US budget. The Congress and the President of the US cannot reach an agreement, this will have influence on financial markets.