Ether Eyes Price Rally After 'Wedge' Breakout, But Europe's Energy Crisis Zaps Risk Appetite
Reasonable Crypto Debate — Michael Casey
The trio visited Dresden, NY, home of Greenidge Generation’s bitcoin mining operation, which has become a lightning rod in the wider debate over Bitcoin’s environmental impact and, in particular, the political battles over New York State’s move last year to impose a ban on new mining projects. They found that both sides have made wildly exaggerated claims about the harm or benefits of Greenidge’s operation. New York Assemblywoman Anna Kelles, a Democrat, has repeatedly made the false claim that the facility is heating nearby Seneca Lake and killing aquatic life. At the same time, many mining advocates dramatically overstate community benefits such as the number of jobs created.
Binance Japan Representative Says Stablecoins Are ‘the Glue’ Between the Real Economy and Blockchain
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Digital Currency Group (DCG) is Closing Down TradeBlock
Digital Currency Group (DCG), the parent company of CoinDesk is closing down its trade execution and prime brokerage services unit, TradeBlock, citing crypto winter and regulatory uncertainties. The shutdown of the unit, which provides trading services to institutional investors, will be effective as of May 31, a DCG spokesperson told CoinDesk. TradeBlock was acquired in 2020 by CoinDesk, and was later spun out as its own standalone business. CoinDesk kept the index data operating from the deal, which was rebranded as CoinDesk Indices, and “has proven to be a successful acquisition,” the spokesperson said. The story was first reported by Bloomberg.
How Financial Advisors Should Think About Crypto in 2023
In addition to its untapped potential, crypto and blockchain have come to be defined by such features as decentralization, security, transparency, efficiency, innovation and financial inclusion. Many of these facets are attractive to financial advisors as they scan the macroeconomic landscape for investment opportunities for their clients. With a difficult 2022 behind us – during which almost every asset class went down – and the traditional 60/40 portfolio had its worst year in over a century, it is important for advisors to be open to possibilities in the future landscape to rebuild, protect and grow their client portfolios.
Centralized Exchanges (CEX) Will Lead Crypto’s Recovery, With the Right Regulations
Managing a digital asset portfolio is operationally complex, with investors requiring a comprehensive set of capabilities such as custody, trading, investment products, advisory and efficient fiat on-off ramps. In this regard, many CEXes integrate these solutions into a single platform, greatly reducing the technical complexity of owning and managing tokens native to different blockchains. This value proposition is clear when considering the alternative: where investors manage several wallets and directly participate in multiple liquidity pools across different blockchains. While some investors will have the capabilities to do so, the steep learning curve suggests that CEXes will remain the preferred platform for many.
DeSantis and the Growing Culture War Around Bitcoin
If Greenidge is any indication, the real conversations we could be having around bitcoin mining and class will be increasingly consumed by another conflict: the Culture War. I’ve said for a while, perhaps being too reductionist, that bitcoin is going to become a red-blue issue in the U.S., with Republicans increasingly endorsing it and Democrats disavowing. Although the network itself will likely always remain “credibly neutral,” the way we think about it, and politicize it, will fall along predictable lines. Many topics have traveled thus. Before climate change became a wedge issue in American politics, for example, it was a relatively non-partisan issue that many politicians agreed on the need to do something about.
Bitcoin Price (BTC) Falls to $26K; Is $24K Next?
Crypto consortium Fahrenheit has won a bid to acquire insolvent lender Celsius Network, whose assets were previously valued at around $2 billion, according to court filings made early Thursday morning. The group will acquire Celsius’ institutional loan portfolio, staked cryptocurrencies, mining unit and additional alternative investments, and must pay a deposit of $10 million within three days to cement the deal, court filings show. A consortium of buyers that includes venture capital firm Arrington Capital and miner US Bitcoin Corp, Farenheit was selected as successful bidder following a lengthy auction process. Under the terms of the deal, the newly-formed company will get between $450 and $500 million in liquid cryptocurrency, and US Bitcoin Corp will construct a range of crypto mining facilities including a new 100 megawatt plant.
Fahrenheit Wins Bid to Acquire Assets of Insolvent Crypto Lender Celsius
The bid, though accepted by Celsius and a committee of its creditors, must still be approved by regulators to finalize the acquisition. Months ago, Bankruptcy Court Judge Martin Glenn warned “regulatory roadblocks” could plague the sale of Celsius much like it thwarted a fellow lender’s acquisition. In April, crypto exchange Binance.US abruptly terminated its purchase of bankrupt crypto lender Voyager’s $1 billion in assets after federal officials appealed the sale, citing the “hostile and uncertain regulatory climate” in the U.S.
BTC Holds Below $27K Amid Macro Uncertainties
Bitcoin was recently trading at $26,362, down about 3.1% over the past 24 hours. The largest cryptocurrency by market capitalization had been hovering in a narrow range before dipping below its recent $26,500 support early Wednesday. Markets have been roiled by an ongoing debt ceiling stalemate and inflationary and crypto regulatory concerns. Federal Open Market Committee minutes showing a difference of opinion among U.S. central bankers about further rate hikes did little if anything, to soothe markets – crypto or otherwise.