tl;dr
• Correction: FedNow is NOT using Ripple blockchain technology• Federal Reserve Governor Mester says bringing down inflation will be painful in the near future• Michael Saylor is being sued for tax fraud• Jim "The Flip Flop" Cramer is at it again saying people should not invest in crypto• Former JPM...
• Correction: FedNow is NOT using Ripple blockchain technology
• Federal Reserve Governor Mester says bringing down inflation will be painful in the near future
• Michael Saylor is being sued for tax fraud
• Jim "The Flip Flop" Cramer is at it again saying people should not invest in crypto
• Former JPMorgan hotshot, Samir Shah, left Pantera Capital after less than 2 months
• US Congress is probing three of the top US exchanges, Coinbase, Binance and FTX over their fraud prevention practices
There is a lot of news out there that will keep downward pressure on the Cryptoverse and the stock market. Here is what is on my mind today.
1. Federal Reserve Governor Mester says bringing down inflation will be painful in the near future. August payrolls were up 132K, as per ADP report. That represents a drop of over 50% and demonstrates a slowdown over the past 2 months. That said, 16.1% of workers jumped to new jobs. "Our data suggests a recent shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy's conflicting signals. We could be at an inflection point, from super-charged job gains to something more normal.", says Nela Richardson, Chief Economist, ADP. I find it interesting that the largest jump was in the Leisure and Hospitality industry.
2. Michael Saylor is being sued for tax fraud. Remember that risk I told you about where I said it would be a problem if he had to sell some Bitcoin? Well, this could be such a scenario if a worst case scenario is reached. Tax fraud is not a laughing matter and he could be on the hook for a lot. Not to mention, MicroStrategy is going to step in and help him defend himself. This event triggers a lot of risks.
3. We all know Jim Cramer is not my favorite person when it comes to the Cryptoverse. Well, once again he came out his mouth and out of his lane. During yesterday's show (which I do not watch) said Bitcoin and Ethereum are not real. He also said investor should avoid speculative investments like crypto. If you go back to a video on cnbc.com (https://www.cnbc.com/2022/06/08/why-jim-cramer-invests-in-crypto.html) you will see him yapping about how it should be a major part of a person's portfolio and that, more importantly, he is invested in crypto. I am going to start calling him Jim "The Flip Flop" Cramer. I mean damn! Which is it, my guy?!
4. Back on July 7th I told you about the new additions to Pantera Capital, including Samir Shah. Well, after not even two months, he has left the company. I have not heard what the reason may be, but with this quick of a timeline, I am not thinking they are good. He was a part of the team of 3 JPMorgan badasses that included Puja Samuel, Eric Wragge. I wonder if this is going to disrupt the team going forward or if we can expect more change.
5. In an interesting move, the US Congress is probing three of the top US exchanges, Coinbase, Binance and FTX over their fraud prevention practices. The committee has requested information and documents from each of the exchanges on the matter. This is a big deal for several reasons. One of which is if you have not set regulation, then I am not sure you have the right to criticize what is currently in place (so long as there is something in place).