EddieJayonCrypto
15 Sep 23
The crypto market has seen a nice little boost over the past day or so. Is BinanceUS about to crash and burn? Here is what is on my mind today.1. BinanceUS is in a world of hurt as its Chief Risk officer and Legal Head both resign. We are currently watching the implosion of the world's largest cent...
The crypto market has seen a nice little boost over the past day or so. Is BinanceUS about to crash and burn? Here is what is on my mind today.1. BinanceUS is in a world of hurt as its Chief Risk officer and Legal Head both resign. We are currently watching the implosion of the world's largest centralized exchange in on of the world's largest crypto markets. Frankly, I think it was a self-inflicted wound that started as a small nick then grew to become something that kills the company. That nick was their weak compliance game. Then it was exacerbated by their unwillingness to play ball during the war Ukraine. They should have immediately joined in on the sanctions. Additionally, the SEC has agreed to unseal confidential documents in the lawsuit against Binance in a "motion to unseal". At the end of the day, it is my opinion that Binance will have to rip operations out of the United States and start over if they want to regain what little toehold they had. 2. Way back in July I saw some news that Deutsche Bank was looking to get their hands on a crypto custody license. Well, Germany's largest bank was able to achieve their goal and are now rolling out a custodial service for institutional investors. This is a very big deal when you consider the bank has assets in the realm of $1.4T. This is not a brilliant move, if that is what you were thinking. It was just three years ago when the bank was saying Bitcoin was too volatile to be considered a reliable store of value. My how things change. 3. JPMorgan is delving into the fast payments business in a new partnership with Gusto. They are looking to launch a digital payroll processing feature service. PayPal and Square are leaders in the fintech space and offer similar features. I guess JPM didn't want to be left behind. Think about it. Fintechs have been nipping at the heels of big banks for years and now the banks must respond to crypto. It is a war on two fronts. I am still waiting to hear how they are going to respond to what Block is doing with Bitcoin integration. 4. I know people think I am joking when I say I think Coinbase is going to be the BlackRock of Crypto. Well, there is further proof to my belief. Crypto data research firm, Messari says Coinbase Ventures has invested in over 329 startups. That is the most in the industry. Followed by Animoca Brands. I want people to think about the number of investments that are going on and then think about the amount of adoption that comes along with them. I tell people that not everything ventured leads to something gained, but if you can be successful 5% of the time, you stand to make a lot of money. 5. In a follow-up to the news I gave you the other day about the overpayment by Paxos, it looks like the bulk o the fee has been returned to them or is about to be. The original fee was $2,176. The amount they sent was $510K. You can do the math on just how fat those fingers were when they initially paid F2Pool. I am still wondering exactly how that flub happened.