EddieJayonCrypto

 22 Sep 22

tl;dr

• The Fed says a better economy will not come until 2025• Jamie Dimon calls public cryptocurrencies Ponzi schemes while JPMorgan pushes its own JP Coin to institutional customers• FTX is looking to raise $1B with their $32B valuation• Société Générale to support digital asset management by portfolio...

• The Fed says a better economy will not come until 2025
• Jamie Dimon calls public cryptocurrencies Ponzi schemes while JPMorgan pushes its own JP Coin to institutional customers
• FTX is looking to raise $1B with their $32B valuation
• Société Générale to support digital asset management by portfolio managers with new services
• NASDAQ offering new crypto services to institutional investors
• Coinbase tests "proprietary" trading with $100M transaction

We all know the markets took a major dive yesterday and Powell does not see light at the end of the tunnel yet. Here is what is on my mind today.

1. The Fed doesn't think we will see the light until 2025. That said we can clearly expect a few more rate hikes. The markets lost their minds over this information which was nothing new. As a matter of fact They do not think inflation will return to a more manageable space until 2025. Liz Young of Sofi is telling her clients markets are going to have a hard time digesting current times, but she thinks using dollar cost averaging to drip in is a smart move versus trying to dump money in at once, trying to call a bottom. Her thought is the Fed will get to about 4.5% and pause. Going any higher than that may prove to be difficult because she doesn't think the economy would stomach that.

2. Jamie Dimon calls public cryptos Ponzi schemes. This is interesting as there are analysts covering the Cryptoverse and his company is supporting digital assets through new services. I guess my question is does he really mean they should not be made available to the masses and should be exclusive to the wealthy?

3. In a major move, FTX is looking to raise $1B with their $32B valuation. It's major because Sam Bankman-Fried is looking to do more acquisitions and not just a little. I think they are well on their way to making some really big moves. Look at their 30% stake in Skybridge for one. The theme is breadth and depth.

4. There are a lot of financial institutions getting into the digital asset game. A new one to the fold is Société Générale. They are introducing The bank will support digital asset management by portfolio managers. The bank will act as a digital asset fund manager and manage fun liabilities. They are expecting their new services will be compliant with existing European regulations. Pretty innovative for France's third largest bank.

5. NASDAQ is finally getting into the crypto game and is going to do it in a big way with a crypto custody solution for institutional investors. Tal Cohen, the Executive Vice President and Head of North American Markets at NASDAQ, says there has been a growing interest from institutional investors that have driven the development of the services.

6. When a financial firm uses its own money as well as their clients' run the risk of conflicts of interest. Well, it is being reported that Coinbase tested a group of at least 4 newly hired Wall street traders to do just that. Reportedly, they completed a $100M transaction. Supposedly, they raised the money by guaranteeing a $100M "structured note" they sold to Invesco for a 4.01% fixed rate. According to anonymous sources, Coinbase used the money to profit in cryptocurrency markets. I don't know if they are still doing this, but it just adds to the growing list of reasons of why I am not a fan.

Disclaimer

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