EddieJayonCrypto

 13 Jul 22

tl;dr

• The June Consumer Price Index (CPI) numbers are hotter than what was expected at 9.1% vs. 8.8%• US Treasury is asking for public input on the risks and benefits of crypto• European Central Bank (ECB) calls for immediate stablecoin regulation and a ban on mining• Michael Saylor says most cryptos, i...

• The June Consumer Price Index (CPI) numbers are hotter than what was expected at 9.1% vs. 8.8%
• US Treasury is asking for public input on the risks and benefits of crypto
• European Central Bank (ECB) calls for immediate stablecoin regulation and a ban on mining
• Michael Saylor says most cryptos, including Ethereum, are securities
• Celsius sell $416M of stETH to Coinbase while losing $6B bailout from largest stakeholder, Simon Dixon, CEO of BnkToTheFuture
• Vermont Department of Financial Regulation (DFR) says Celsius is insolvent and engaged in an unregistered securities offering


If you are paying attention, there are some important tidbits to make note of. Here is what is on my mind today.

1. June CPI data shows CPI is up 1.3% which is higher than expected 1.1% bringing the Year-over-year numbers to 9.1% vs. the expected 8.8%. This is driving treasuries to go up. This seems to be driving the stock market down. That leads me to believe cryptos will also see a decline.

2. The US Treasury is asking for public input on the risks and benefits of crypto. This is actually a good thing even though the general public is not as educated on the Cryptoverse. With more and more companies helping to educate the general public coupled with the recognition of the very large numbers underserved and people with any bank account at all, there is an existing financial structure to which people can compare.

3. Meanwhile, the European Central Bank (ECB) released its findings just ahead of what are expected to be a huge swath of regulations later this year. The negative views of the EU on the Cryptoverse is no secret. So it was also no surprise the ECB is recommending a ban on crypto mining and immediate stablecoin regulations. A late response to something they thought would just go away like a passing fad.

4. Michael Saylor says most cryptos are securities. This is based on most being started with ICOs and most having central teams the determine what the respective cryptos will do. I think he is a person worth hearing from, but on this point, I think I disagree. He called out the many hard forks that have happened to other cryptos. I think he may have forgotten the birth of Bitcoin Cash. Something else I do not agree with his rigid focus on how a coin gets started. Many projects have evolved and may have central teams, but give voting rights to holders, thusly moving decisions to a decentralized state versus a beginning that may have been centralize.

5. It has been confirmed that Celsius has sold approximately 400K stETH (staked ETH) to Coinbase. This brought in approximately $416M. Paying down even more debt, it would seem Celsius' debt sheet looks to be less than $50M. There are still troubled waters for Celsius as Simon Dixon, CEO of BnkToTheFuture, says Celsius lost a possible $6B bailout from him due to their unwillingness to be transparent on their finances. Keep in mind, Simon is its largest shareholder. It is no shock that the Vermont Department of Financial Regulation (DFR) issued a devastating consumer alert saying they do not think the company is no longer solvent. They also allege they engaged in an unregistered securities offering.

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