tl;dr
• Janet Yellen is calling for Congress to pass stablecoin legislation• US SEC Chairman, Gary Gensler says transparency for crypto risks• Talos, an institutional digital asset trading service provider, banks $150M in Series B and $1.25B valuation• Coinbase may be down, but they are in no way out• AMC...
• Janet Yellen is calling for Congress to pass stablecoin legislation
• US SEC Chairman, Gary Gensler says transparency for crypto risks
• Talos, an institutional digital asset trading service provider, banks $150M in Series B and $1.25B valuation
• Coinbase may be down, but they are in no way out
• AMC says 35% of Q1 2022 online sales were paid for with digital assets
• Napster is going Web3
There is some serious news out there about why things are so down and even more about the risk of crypto. Here is what is on my mind today.
1. Janet Yellen is calling for Congress to pass stablecoin legislation. This seems to be backed by a broader statement by the Federal Reserve saying it has concerns about the viability of so-called stablecoins due to the level of risk during stress. They go on to state the vulnerabilities may be exacerbated by the lack of transparency regarding risk and liquidity. Hence, the stablecoin sector is vulnerable to runs. In a word, agreed! People look at stablecoins, even algorithmic ones, as being safer than they actually are. You have to do your own research. In doing so, you would learn that stablecoins are as risky as any other coin. Even Terra is looking into becoming an asset-backed stablecoin. I only use stablecoins if that is what's needed to acquire the coin I actually want. I do not hold money there. If I want to hold cash, then I hold cash. Don't allow your zeal for crypto allow you to forget that cash is still a vehicle for most transactions.
2. A while ago I did a video about wallets. The worries from the US SEC Chairman, Gary Gensler go toward that lesson. Cryptocurrency exchanges hold crypto that is only earmarked for you, but the assets are not really yours. Not your keys, not your coins. For example, if Coinbase or any other exchange was to hit turbulence and needed to pay creditors, they can legally use the coin they are holding to pay their debts or otherwise use them as collateral. The coins are theirs to use however they see fit. That means creditors would be paid before you can get your coins out. Again, they only offer custodial service. If you want to maintain true control over your digital assets, then you need to have a non-custodial wallet. Take a look at my educational section to learn more.
3. As per a press release, Talos is set for growth. With a valuation of $1.25B, Talos, a blockchain infrastructure company for institutional digital asset trading, has raised $105M in a Series B round. The funds are to be used for expansion into APAC and Europe. Investors includea16z, PayPal, Stripes, BNY Mellon, Wells Fargo Strategic Capital and Voyager Digital, to name a few.
4. People are losing their minds as Coinbase sheds over $430M. I turn and look at the moves they have been making on the global stage. Then I also look at what they are saying, in comparison. Coinbase's Head of EMEA, Guillaume Chatain, says the company wants to become the Amazon of crypto. This absolutely matches the moves they have been making.
5. We already knew accepting crypto as payments was going to be a big deal. AMC theaters has proven us right by announcing 35% of their online sales in Q1 2022 have been in crypto! My company is about to launch native crypto payments on our hosting platform, Rebel Reach. Any ecommerce business on our platform will be able to accept digital assets for payments. Whether you are an established business or are thinking about starting one, Rebel Reach has a host of features that will make your website work for you instead of the other way around!
6. I came across an article saying Napster has been bought by Algorand and Hivemind Capital. With Spotify and LimeWire both looking at Web3, this is an incredibly smart move. Algorand is the strategic partner and, clearly, the