EddieJayonCrypto
27 Jul 22
• Cryptos go bullish with expected Fed rate hike of 75 basis points• Michael Saylor's MicroStrategy is down 55% YTD and has been downgraded by Jefferies• Kraken is being investigated for allegedly allowing people in sanctioned countries to use their platform• US Senators introduce a bill make crypto...
• Cryptos go bullish with expected Fed rate hike of 75 basis points• Michael Saylor's MicroStrategy is down 55% YTD and has been downgraded by Jefferies• Kraken is being investigated for allegedly allowing people in sanctioned countries to use their platform• US Senators introduce a bill make crypto purchases under $50 tax-free.• SEC has another misstep against Ripple as amici status remains in place• Cathie Wood's Ark invest jettisons $75M worth of Coinbase sharesMicroStrategy take a tumble and Kraken is being investigated. Here is what is on my mind today.1. Well, the expected has happened. The Fed pumped up the rate by another 75 basis points. Since the expected happened the Cryptoverse decided to go bullish. Powell was also smart enough to stay away from recession question and stick to the topic at hand. 2. Michael Saylor's MicroStrategy is down 55% YTD and has been downgraded by Jefferies analyst Brent Thill to underperform from hold. I think most people could see the downgrade coming and should be of no surprise given the performance of Bitcoin. Currently, MicroStrategy holds 129K BTC. I wonder what is going to happen when Bitcoin rockets up again. 3. Following news of Binance allegedly allowing users from sanctioned countries to use their platform Kraken is now under investigation for similar allegations. As reported by the New York Times, The United States Treasury’s Office of Foreign Assets Control is leading the investigation. The inquiry actually started in 2019. I wonder what other exchanges are being investigated. This and other events make me wonder about the viability of centralized exchanges in the United States. If I didn't know any better, this would make for a great conspiracy theory. Shutdown or hamper exchanges handling retail clients while enabling institutional investment. 4. US Senators introduce a bill that would make crypto purchases under $50 tax-free. A nice gesture, but more though and action needs to be taken. We cannot continue to regulate crypto through enforcement. The investigation by the SEC into alleged securities offerings by Coinbase seems very shaky to me. If the SEC has reviewed and approved Coinbase's vetting process, why does their have to be a big investigation. Are they investigating the coins themselves? Not to mention the blatant omission of Ethereum in their allegations. Again, we need thoughtful and fair regulation. 5. In another blow to the SEC, XRP holders will be allowed to join the SEC lawsuit against Ripple as Judge Analisa Torres rejected the SEC's bid to revoke amici status from future proceedings. At some point the SEC is going to have to make a real case against Ripple and present it. Thus far, we have seen more tactical delays than anything else. I am wondering how their contradictory and sometimes hypocritical approach is in the best interests of the public. 6. Adding to the woes of Coinbase, Cathie Wood's Ark Invest jettisoned $75M in Coinbase stock. Before this, Ark Invest was the third largest shareholder in Coinbase. The investment firm still holds more than 7.5M shares following this sale. Remember, Ark Invest made a dip purchase around May 12th. I know it was not fun to sell yesterday and then watch it get a little pop today. I still think it was the right move. 7. Unstoppable Domains just made a big move by getting $65M in the latest round of funding. Getting a valuation of $1B, Unstoppable Domains achieves Unicorn status! When we work with our marketing clients, Unstoppable Domains is a part of our branding package. Think about all of those companies that did protect their brand when the Internet took off. 8. The Ethereum merge is still on track for the September 19th launch after a successful deployment of its 10th "shadow fork".