EddieJayonCrypto
22 Aug 23
Commercial real estate is having problems and that adds to the regional banking problem that still exists in the US. Here is what is on my mind today.1. During the Sunday Roundup I told you about how Billionaire David Sacks is having issues with funding his $15M office building an decided to pay off...
Commercial real estate is having problems and that adds to the regional banking problem that still exists in the US. Here is what is on my mind today.1. During the Sunday Roundup I told you about how Billionaire David Sacks is having issues with funding his $15M office building an decided to pay off the loan since his lender was asking him to collateralize $6.6M the $9M loan he wanted. Then you have to take into account the latest move by S&P Global to join Moody's with some regional banking downgrades of its own. They cited funding risks and that leads to weaker profitability. Check out this list of downgrades. a. Associated Banc-Corp b. Valley National Bancorp c. UMB Financial Corp d. Comerica Bank e. Keycorp 2. Vitalik Buterin move about $1M worth of ETH to Coinbase and that has a bunch of people spooked I guess my question is why? He has had numerous people literally send him money for free. He is the lead developer and face of Ethereum. I do not think he wants to see it fall. Maybe he just wants some money for his pockets. If he sells his ETH, I don't think people should be reading anything into it. 3. Here is a major move in the issuance and governance of USDC. The Centre Consortium that used to do it is being closed down and the functions are being moved in-house. On top of that Coinbase, who used to jointly manage the Consortium with Circle, has taken a minority stake in Circle. Coinbase joins BlackRock and Fidelity who both purchased stakes in the company last year during Circle's $400M raise. The difference is that Coinbase did not have to kick up any cash for their minority stake. This amounts to a bigger move than people think. 4. Did the massive $55M Bitcoin sell-off come as a result of the SEC kicking the can down the road on deciding on a Bitcoin Spot ETF? I think that could be part of the problem. That said, I also think there is been massive overselling of the coin. Again, there is a finite amount of Bitcoin. Frankly, I think this may be one of the last times you will be able to accumulate more Bitcoin before its availability decreases. DCA! 5. In case you did not know, Goldman Sachs is a bank. More importantly, this bank is considering the sale of its investment advisory business. A business they have been running for only 4 years. The foundation of that business started with their purchase of United Capital for $750M. My question is what are they going to sell it for and even more important than that is who are potential buyers of the arm. I ask because it seems successful advisors are leaving major players to hang their own shingle or join more boutique operations. That sounds to be like they are reaching for larger pieces of the pie they bake. 6. In other news there are two more countries that have decided to build their CBDCs on XRP Ledger. Montenegro is currently running a pilot. The next one we should really be paying attention to as it is a major player in digital residency space. They have cut a deal with Ripple to create a US-Dollar-backed stablecoin. I was wondering what else the country was going to do and here we go.