Cryptocurrency exchange Coinbase is planning to go public, and financial disclosures show a burgeoning—and surprisingly profitable—business. Amid the crypto bull market, the San Francisco company made $1.3 billion in revenue last year with a net profit margin of 25%. Roughly half of last year’s revenue came in the last four months of 2020 alone, amid a roaring bitcoin bull market, as Forbes reported in January.
Now Coinbase CEO Brian Armstrong, cofounder Fred Ehrsam and venture capital investors like Andreessen Horowitz are set to see their stock values take off, surpassing tens of billions in total value.
Coinbase last raised venture capital funding in October 2018 and was then valued at $8 billion. But its shares recently sold on Nasdaq’s secondary market, where shares of a private company’s stock can trade after they were first issued but before the business goes public, at an implied valuation of $77 billion. Investors speculate that Coinbase will be worth more than $100 billion when it starts trading publicly on the Nasdaq.
Brian Armstrong owns 21% of Coinbase’s stock. We currently (and conservatively) value his net worth at $6.5 billion. But if Coinbase actually reaches a $100 billion valuation, his stake would be worth about $20 billion.
We estimate that Fred Ehrsam owns 6% of Coinbase. (Some of the shares attributed to him in a regulatory filing are held in trusts that aren’t in his name. It’s unclear how much of those he owns, and he didn’t immediately respond to our request for comment.) Forbes conservatively values his net worth at $2.1 billion, making him a billionaire for the first time. If Coinbase’s market value hit $100 billion, his stake would jump to $6 billion.
Here are the sums that Armstrong, Ehrsam, Andreessen Horowitz, Union Square Ventures, Ribbit Capital and Tiger Global could inherit from the IPO, despite some of these investors recently selling large chunks of their Coinbase stock:
I lead our fintech coverage at Forbes, and I also write about blockchain technology and investing. In October 2020, three of my colleagues and I won the Excellence in Personal Finance Reporting award from the RTDNA and NEFE for our stories on Robinhood. I’ve also written frequently about leadership, corporate diversity and entrepreneurs. Before Forbes, I worked for ten years in marketing consulting, in roles ranging from client consulting to talent management. I’m a graduate of Middlebury College and Columbia Journalism School. Have a tip, question or comment? Email me jkauflin@forbes.com or send tips here: https://www.forbes.com/tips/. Follow me on Twitter @jeffkauflin. Disclosure: I own some bitcoin and ether.
[…] ly/3hhcnmV Published: 27th Feb 2021 03:36:14 By: Yahoo Finance ECONOMIC VIDEO: COINBASE FILED S-1 AHEAD OF A DIRECT LISTING — WHAT YOU NEED TO KNOW Related Videos On: Coinbase filed S-1 ahead of a direct listing — What you need to know Cryptocurrency exchange Coinbase filed its S-1 for an upcoming direct listing […] cx/2NGeIvi Cryptocurrency exchange Coinbase on Thursday filed to become a public company and revealed that its revenue more than doubled las […]
Last December, Live Bitcoin News reported that Coinbase – one of the largest and most popular cryptocurrency exchanges in the United States – had decide […] Coinbase Is Going Public, and Brian Armstrong Has a Lot to Say Among these documents was a heartfelt lette […] The letter states: Coinbase is a company with an ambitious vision: to create more economic freedom for every person an […] Coinbase is building the infrastructure to power the crypto economy, helping bring the benefits of this ne […]
Coinbase Global Inc […] -based power list starts with Brian Armstrong, the now billionaire chief executive officer of Coinbase, and his co-founder, Fred Ehrsam, who went on to create Paradigm Operations […] didn’t deter Wilson at Union Square and DCG’s Silbert, both of whom were series A investors in Coinbase. The company’s shares changed hands in recent private transactions at levels that would value Coinbase at close to $100 billion, a person familiar with the matter have said […]
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# simple-coinbase-bot A simple Coinbase Pro buy/sell bot […] See [Coinbase Fee structure](https://help […] # Getting Started First, create an API key with view/trade permissions in the [Coinbase Pro profile](https://pro […]
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Coinbase has built the world’s leading compliant cryptocurrency platform serving over 30 million accounts in […] There are a few things we look for across all hires we make at Coinbase, regardless of role or team […] About Coinbase Design Systems The Design Systems team at Coinbase plays a critical role in executing on our vision to create more economic freedom for the world, and […] Establish the Coinbase Design’s production function by developing scalable ways of working that make for smooth an […]
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I usually prefer exchanges for better prices but lately I’ve been using coinbase for everything, it’s just more convenient when you have multiple types of crypto. Plus, you can now stake XTZ in coinbase and earn interest.
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that0neinvestornow Do your own DD please: Coinbase (I Currently have) – I like the user interface, because it’s user friendly and easy to understand […] Coinbase Pro – this app is more so like an actual exchange where you can buy, sell, or short from othe […] There are way less fees here than Coinbase . At some point I’ll be trading here, but for now I’m just going to be dabbling around on Coinbase. There are much more coin options here than Coinbase! I’d highly recommend […]
Coinbase, the largest U.S. broker of digital currencies such as bitcoin, litecoin, and ethereum, has filed to go public on the Nasdaq in a watershed moment for the cryptocurrency.
Tesla has invested $1.5bn in bitcoin and plans to begin accepting it for payment in one of the highest-profile endorsements of the cryptocurrency sector by a major US company. The disclosure from the electric carmaker sent bitcoin rallying to a record high of $44,100, extending its 50 per cent surge so far this year.
Analysts have put the meteoric rally down to growing enthusiasm from institutional investors seeking returns in the era of low interest rates. In a regulatory filing on Monday, Tesla said it purchased the bitcoins after changing its investment policy last month to “diversify and maximise” returns on its cash. Line chart of $ per coin showing Bitcoin soars after Tesla reveals $1.5bn investment For years Tesla was short of cash as it invested heavily in developing its electric vehicles.
Although its finances have improved, the bitcoin investment still represents about 8 per cent of the $19.4bn it held in cash and liquid assets at the end of December, according to the filing. The group said it expected to accept bitcoin as a form of payment for its products, although initially on a “limited basis”, adding that it might sell the digital assets for hard currency once payments are processed.
Elon Musk, Tesla’s founder, has been a vocal supporter of digital assets on social media, particularly about dogecoin, which he said was the “people’s crypto”. In December he wrote on Twitter that bitcoin was his “safeword” in an apparent joke. Robyn Denholm, an Australian telecoms executive who took over from Musk as chair of Tesla’s board in 2018, is head of the audit committee that signed off on the change to the company’s investment policy.
The change allows Tesla to invest “a portion” of its cash in “alternative reserve assets including digital assets [and] gold bullion”. Recommended John Gapper Electric vehicles need to arrive as fast as vaccines The carmaker is the latest consumer-facing company to venture into cryptocurrency markets, following PayPal. However, cryptocurrencies remain highly volatile and are risky to hold due to frequent hacking and fraud, as well as difficulties in transferring them to cash.
“We believe our bitcoin holdings are highly liquid. However, digital assets may be subject to volatile market prices, which may be unfavourable at the time when we want or need to liquidate them,” Tesla said on Monday. “[This] is a potential game-changing move for the use of bitcoin from a transactional perspective,” said Dan Ives, an analyst at Wedbush Securities.
Ives said the announcement from Tesla could prompt other companies to make similar decisions given the growing interest in digital currencies. “Investors and other industry watchers will be watching this closely to see if other corporations follow the lead of Tesla on this crypto path or on the other hand does it remain a contained few names that make this strategic jump around bitcoin.”
Coinbase – a platform used to buy and sell currency – has temporarily disabled its users from being able to purchase Bitcoin and other cryptocurrencies using US dollars.
Users who have attempted to make purchases over the past day have received a message that reads, ‘USD purchases are temporarily disabled,’ while other currencies, including the British pound, are also reported to have been blocked from making purchases.
Coinbase hasn’t commented since its users started getting the message, however the platform has reported experiencing difficulties due a recent surge in interest following a rise in the price of Bitcoin.
It’s unclear whether the temporary issue is related to the technical issues the app has been experiencing, or whether it’s a move from Coinbase to try and slow or restrict purchases.
However, it comes in the wake of trading platform Robinhood suspending sales of hugely popular Reddit stocks, GameStop and AMC, causing concern that similar blockages could be happening with Bitcoin too.
If the latter were to be true, it would be an incredibly unpopular move given all the backlash Robinhood is facing for allegedly protecting hedge fund millionaires at the steak of Reddit investors. Donald Trump Jr, Alexandria Ocasio-Cortez and Ted Cruz are among those who have criticised the platform.
One Reddit user has even filed a class action against the platform, after it blocked any further sales of GameStop stock due to ‘volatility of the market’.
Meanwhile, the value of Bitcoin has soared over the past couple of days, after Tesla founder Elon Musk changed his Twitter bio to simply read ‘#bitcoin’.
In just one hour after the multibillionaire updated his profile, the cryptocurrency’s value soared from around $32,000 (£23,500) to above $37,000 (£27,000,) per online trading site Coinbase.
Elsewhere, a cryptocurrency that began as a joke, has also soared in value by 140%, following the recent success of Reddit-fuelled stocks.
Dogecoin, which is based on the popular ‘doge’ meme, saw huge increases after a Reddit thread called SatoshiStreetBets called for the currency to reach the value of $1 per coin.
Again, cryptocurrency fan Musk has touched on the dogecoin, with many Reddit users calling on him to help spread the word about the currency.
Back in April 2019, he tweeted, ‘Dogecoin might be my fav cryptocurrency. It’s pretty cool,’ later sending its value soaring by 20% when he simply tweeted, ‘doge.’
If you have a story you want to tell, send it to UNILAD via story@unilad.com
Emma Rosemurgey is an NCTJ trained Journalist who started her career by producing The Royal Rosemurgey newspaper in 2004, which kept her family up to date with the goings on of her sleepy north east village. She graduated from the University of Central Lancashire in Preston and started her career in regional newspapers before joining Tyla (formerly Pretty 52) in 2017, and progressing onto UNILAD in 2019.
Almost every time the price of bitcoin increases or decreases quickly, Coinbase shuts down. It happens like clockwork, time and time again. Why does Coinbase always go down? Instead of specifically focusing on why Coinbase always crashes, in this video we will go over a simple fix to prevent yourself from being a victim in the future when your exchange of choice crashes or your account is disabled/frozen. Time Stamps: Intro – 0:00 History Of Crashes – 0:15 The Solution- 1:00 Alternative Exchanges – 2:00
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Paypal’s cryptocurrency partner Paxos has raised $142 million in Series C funding led by Declaration Partners, an investment adviser to the family office of Carlyle Group billionaire David Rubenstein. The round closed on November 24 and also includes investments from PayPal Ventures PYPL+2.3% and Paxos’ previous investors RRE Ventures and Liberty City Ventures.
In total, the firm has raised $240 million in venture funding, making it one of the highest funded firms in crypto, after Circle, which has raised $271 million. The firm declined to disclose how much the investment valued the company.
New York City-based Paxos was founded in 2012 under the name itBit. It was among the first bitcoin startups to operate as a regulated trust company, offering custody services for U.S. customers under New York banking law. In October, payment giant Paypal launched a cryptocurrency trading service in partnership with Paxos, letting customers buy and spend bitcoin.
“Our pipeline has expanded very significantly from having been in the millions of customers maybe a year ago to, now, billions of customers through partnerships,” says Paxos’ CEO and co-founder Charles Cascarilla. “That is partly why we need to raise this capital, to really take advantage of the growth opportunities.”
As part of the investment, the company plans to develop new products that help institutional clients track traditional assets like securities and commodities on a blockchain, a process called tokenization. “We always want to be able to think of other ways that we can grow our business, including, potentially, acquisitions and new hires,” adds Cascarilla. Part of the capital raise will be invested in regulatory infrastructure, which Cascarilla cites as one of the key reasons for Paxos’ success with onboarding strong institutional clients, such as PayPal and Credit Suisse CS+0.4%.
The investment news comes the day after bitcoin breached the $20,000 mark for the first time ever. Paxos likely played a role in cryptocurrency’s meteoric rise over the second half of the year. On October 21, PayPal announced its entry into the cryptocurrency market by integrating Paxos’ API-based crypto brokerage service and giving its 350 million customers access to bitcoin and a handful of other cryptocurrencies.
PayPal’s embrace of crypto coincided with bitcoin’s rally, and some analysts have even expressed the view that the online payment giant is actually fueling the spike. Earlier in July, the American division of the U.K.-based fintech firm Revolut integrated Paxos’ technology into its app, enabling the fintech’s customers in 49 U.S. states to buy, hold, and sell bitcoin and ether.
Paxos however shies away from positioning itself as a purely crypto-native venture, stating its commitment to provide infrastructure for multiple asset classes. In February, the firm facilitated what it describes as the first live application of blockchain technology for U.S. listed equities when Credit Suisse and Nomura Instinet began using the startup’s technology to settle equity trades.
Paxos Settlement Service is a private, permissioned blockchain network allowing two parties to bilaterally settle securities trades directly with each other without using a middleman. In September, French banking giant Societe Generale became the third broker-dealer utilizing the service. To date, 15,000 trades worth approximately $75 million have been settled on the platform.
On December 8, Paxos filed an application for a national trust bank charter with the Office of the Comptroller of the Currency (OCC), a regulatory agency that supervises banks and branches and agencies of foreign banks. If granted, Paxos could become the first custodian of digital assets to be regulated at both the state and federal levels. In 2015, it obtained a trust charter from the New York State Department of Financial Services (NYDFS) to become one of the first regulated companies in the state to offer crypto products and services. Follow me on Twitter or LinkedIn.
I report on cryptocurrencies and emerging use cases of blockchain. Born and raised in Russia, I graduated from New York University Abu Dhabi with a degree in economics and Columbia University’s Graduate School of Journalism, where I focused on data and business reporting.
The partnership announcement between the payments giant PayPal and the issuer of the major stablecoin Paxos Standard Token (PAX) might reportedly be made this week. PayPal is planning to bring crypto trading to its user base and has chosen New York-based Paxos to handle the new service’s supply of digital assets, reported CoinDesk, citing “two people familiar with the matter.”As for which cryptoassets PayPal would include in its rumored crypto trading option is not yet known and might be revealed with the official announcement of the partnership itself.
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Bybit is a crypto exchange from the British Virgin Islands. On the date of last updating this review (2 December 2020), Bybit informed on their website that they had more than 1.2 million users, which is very impressive.
Bybit is a crypto derivatives exchange where you can trade with as much as 100x leverage on a certain number of assets (see above what cryptos you can trade here). But that’s not all you can trade. At this platform, it is even possible to trade quarterly futures contracts. These contracts will expire based on its calendar cycle and converge to the spot price. One key advantage is that users no longer need to pay any funding fees.
Bybit’s matching engine is allegedly capable of up to 100,000 TPS (Transactions Per Second) which is incredibly impressive and a great future for anyone interested in leveraged trading. We say “allegedly” as there is no way for us to verify this information, not because we mistrust it in any way. Bybit continuously improves the safety and reliability of the trading platform. For instance, on 2 December 2020, they made a number of speed improvements to the platform that made order placements 50% faster, made the trading platform require 50% less CPU and memory load and made the connections to EMEA and Latin America 500% faster.
This platform is not only available for desktop, but also Android and Apple mobile phones. Most traders in the crypto world today carry out their trades via desktop (around 70% or so). However, there are naturally people out there that want to do it from their smart phone as well. If you’re one of those people, then this platform can still be for you, seeing as it has a native mobile application (unlike e.g. BitMEX).
As mentioned above, Bybit allows you to trade with leverage. This means that you can receive a higher exposure towards a certain crypto’s price increase or decrease, without actually holding the necessary amount of assets. You do this by “leveraging” your trade. In simple terms, this means that you borrow from the exchange to bet more. You can get as much as 100x leverage on this platform.
For instance, let’s say that you have 100 USD in your trading account and you bet this amount on BTC going long (i.e., going up in value). If BTC then increases in value with 10%, you would have earned 10 USD. If you had used 100x leverage, your initial 100 USD position becomes a 10,000 USD position so you instead earn an extra 1,000 USD (990 USD more than if you had not leveraged your deal). However, the more leverage you use, the smaller the distance to your liquidation price becomes. This means that if the price of BTC moves in the opposite direction (goes down for this example), then it only needs to go down a very small percentage for you to lose the entire 100 USD you started with. Again, the more leverage you use, the smaller the opposite price movement needs to be for you to lose your investment. So, as you might imagine, the balance between risk and reward in leveraged deals is quite fine-tuned (there are no risk free profits).
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the trading view at Bybit:
US-investors may not trade here. The exclusion of US-investors is primarily due to regulatory reasons. The US-legal regime imposes obligations on many companies accepting funds from US-investors. If you are a US-investor, don’t despair! Why don’t you just try finding the best cryptocurrency exchange for you to trade at by using the filters in our Cryptocurrency Exchange List? Check it out.
Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. We call makers for “makers” as their orders make the liquidity in a market. Takers are the ones who “take” this liquidity by matching makers’ orders with their own.
At Bybit, takers are charged 0.075% per order. This is difficult to compare to the global industry average taker fees for regular centralized exchanges, as the instruments traded at the different exchanges are also different from each other. In any event, 0.075% is a fair fee.
When it comes to the makers, their fee is -0.025%. This essentially means that each maker get paid to trade. To clarify, let’s say that you are the maker in an order where you purchase cryptocurrency for USD 1,000. This means that instead of paying USD 1,000, you will only have to pay USD 997.50. This is a very competitive trait indeed.
Bybit Withdrawal fees
When withdrawing BTC from the Bybit trading platform, you will have to pay 0.0005 BTC. This is 40% lower than the global industry average BTC withdrawal fee (0.0008 BTC) and thus also a very competitive withdrawal fee.
Deposit Methods
Bybit does not accept any deposits of fiat currency. This means that new investors (i.e., investors without any previous crypto holdings) can’t trade here. In order to purchase your first cryptos, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Filters!
Bybit Security
We run all exchange-websites in Mozilla’s Observatory-test (https://observatory.mozilla.org/). The score in such test is one of many indicators of the exchange’s security. Bybit received a B-score in this test. B is very impressive, particularly in light of most exchanges in our Exchange List only receiving F-scores.
Good work, Bybit!
***
Low trading fees are indeed very important for any crypto investor. All of the following exchanges also – like the above exchange – have very low trading fees (some of them don’t even charge trading fees at all):
Liquidity is a topic that always pops up now and then in both the crypto community and beyond. We are sure that there is no crypto enthusiast who hasn’t heard about Bitcoin liquidity. The question is how to calculate liquidity and how to find the most liquid exchange? Let’s dig out the truth, but first things first.
Some Terminology
Liquidity is a key parameter of a certain market, which reflects the “saleability” of a certain asset. Making it simple – liquidity reflects the price change, which will be caused by filling the Market order of a certain size. In a perfectly liquid market, one would be able to sell any amount of an asset at the same price without moving it.
Thus, liquidity is an opportunity to sell assets on the market without influencing their price. Liquidity could be measured not only for certain assets but also for the whole market in general. Let’s dig deeper and determine how liquidity affects crypto trading with and what you should know about it.
The liquidity of a cryptocurrency is determined by a number of factors – from its popularity to real-world use cases of the traded asset. To better understand the concept of liquidity, it’s crucial to introduce the Order Book of a certain market. The name says it all – order book is a list of other people’s confirmed desire to purchase a traded asset at a certain limit price. When someone needs to buy or sell the crypto-asset immediately, they will have to place Market orders, which will execute against the available orders in the order book.
How To Detect Liquid Exchange?
For example, someone plans to Buy or Sell 1 BTC having an appropriate amount of USDT and BTC on balance. Let’s review some of the options to do this (it’s worth mentioning that at the time of writing, BTC is worth something around $9,200).
First, let’s look at BTC/USDT pair on the Binance exchange.
In the right section of the trading interface, you can see the above-mentioned order book and the last price at which BTC was bought or sold. From the order book, we can see that the lowest price at which someone is ready to Sell BTC is 9,189.04 and there is 4.026387 BTC available at this price.
If the user will submit a Market Buy order at the moment of the screenshot, her order will be matched against that offer and the last price of BTC/USDT would become $9,189.84, the amount of BTC available at this price will decrease and become 3.206387 BTC. In this case, liquidity on a Binance BTC/USDT pair on the Buy-side was good enough for a 1 BTC order size allowing the trader to Buy the BTC at the best available price.
At the same time, we can see from the other side of the order book that the highest price at which someone is willing to Buy BTC is 9,189.83, but they are willing to buy only 0.693640 BTC at this price. Consequently, if the user submits a Market Sell order for 1 BTC, he will ‘eat’ through 3 levels of the order book. Such an order will consume entire Buy offers at 9,189.83 and 9,189.71 levels and most of the 9,189.47 price level, moving BTC/USDT price to $9,189.47. At the same time, the All Buy orders sitting in the Order Book with the prices of $9,189.83 and $9,189.71 would be 100% filled, while the Buy orders with the price of $9,189.47 would be partially filled for the size of 0.30136 BTC. The average execution price of the 1 BTC Market Sell would be:
0.69364*9,189.83 + 0.005*9,189.71 + 0.30136*9,189.47 = $9,189.72. The difference of $0.11 between the observed best Buy offer in the Order Book at 9,189.83 and effectively achieved the average execution price of 9,189.72is called price slippage. Price slippage represents a loss for the trader due to insufficient liquidity on the Buy side of the Binance order book. Were the trader to send a Market Sell order for the amount greater than 1 BTC, the price slippage incurred would increase substantially.
Besides the direct price slippage implications of exchange order book liquidity, one could also try to derive various trading signals from it. In the example above, since the liquidity of BTC/USDT pair on Binance appears to be better on the Sell-side of the order book, a simple conclusion could be drawn that the Selling pressure is high and that high Level 1 Sell liquidity represents market makers’ opinion that the short-term market price movement will be downwards. However, since this prediction is quite obvious, it might not come to fruition.
Binance, though, isn’t the only exchange on the market. Let’s check what would happen if the same user would try to complete the same orders on let-it-be BitRabbit exchange. Frankly speaking, we’ve never heard of this exchange and strongly don’t recommend using it for trading. One of the reasons, apart from the funny name and doubtful security of the exchange, would be presented below.
On a screenshot, you can see the same market (BTC/USDT) on the BitRabbit exchange. The first notable difference is that the price of BitRabbit is around $30 lower than on Binance. Though, it’s not the biggest problem with this screenshot.
If the user will (for any reason) deposit the necessary funds to purchase and sell 1 BTC worth of assets – the situation will be different compared to Binance.
If she will try to submit a Market Buy of 1 BTC for USDT the order will be executed at the price that is nowhere near the Last Price of $9,163.98. The thing is that all the Sell orders sitting in the whole visible part of the order book aren’t enough to fill the order of 1 BTC. Even more, they won’t even fill a third of it, which means that the average price of 1 BTC purchased on this exchange at Market would be over $9,182, representing a price slippage of almost $20. Remember, that on Binance the price slippage incurred by the same 1 BTC order was just $0.11.
In the case of Market Sell Order of 1 BTC on BitRabbit, the slippage would not be so bad, though the order will ‘eat’ through the first three levels of the order books and fill at fourth – the price will slip less than a dollar.
This simple comparison gives you a basic idea of why liquidity is such an important characteristic of an exchange. If an order of 1 BTC can create a slippage of 20+ dollars, imagine what would happen next time BTC rallies some $500+ in 15 minutes and you are trying to exit or enter a large position on an exchange like BitRabbit.
What Influences Liquidity?
Exchange listings.
The asset’s presence on several trading platforms increases its liquidity in most cases. The more exchanges have listed an asset, the more opportunities for traders to trade it. So, the trade volume is increasing.
Though, often, listings don’t provide liquidity. It is a typical situation when one of the assets in TOP 50-150 of CoinMarketCap is listed on 10 exchanges, while it has more than $100,000 daily volume only on 1-2 of them.
Though, in general, new cryptocurrencies are characterized by low liquidity due to their absence from major exchanges.
Use cases outside the crypto industry.
A holy grail of every crypto project is wide user adoption though, real adoption was achieved only by a few of the coins on the market. Apart from the obvious BTC use case as a “digital gold” and store of value, Ethereum managed to get some real usage back in 2017, when a boom of Smart Contracts and ICOs occurred. It now seems to gain traction with DeFi.The most recent example of wide enough adoption is Binance Coin, which became a lottery ticket to the IEO hype of 2019. Though, both of these cases still weren’t a “wide adoption outside of the crypto industry” – more like wide adoption inside of it.
Popularization.
The stronger the crypto community scales, the more liquid in general the crypto assets are. This fact is undeniable and the proof is the performance of Bitcoin in 2017, when this coin rapidly gained at price, volume, social media mentions, and Google trends.
However, if the cryptocurrency is new and a sufficient number of crypto enthusiasts haven’t heard about it, then, most certainly, it lacks trust from the crypto community. The asset would be considered of low liquidity or, in the worst case, manipulated by bot trading and fake market making. At the same time, the asset has every chance to change its position, drawing attention to it with marketing activities, constant development, and a solid project team behind the project.
Cryptocurrency Liquidity as an Indicator of Confidence
The liquidity of cryptocurrencies is undoubtedly an important parameter that you should pay attention to when devising your trading strategy.
Think about buying a $10,000 worth of some TOP-500 altcoin, while it’s daily trading volume is $20,000. In the best case, if you don’t want to push the price up to and incur huge slippage, you’d have to accumulate your position over a week or even a few weeks. Illiquid assets often become subjects of speculations, and pump and dump schemes. It is easier for pumpers to influence the price of an illiquid asset by buying or selling a large chunk of the daily volume of this asset. In case, if the asset has low liquidity, this “large chunk” of daily volume would cost the pumpers less money.
Sadly, Pump and Dump schemes are still a thing in the crypto market. As a result, the vast majority of the new crypto traders fall victims to at least one of those schemes. Mainly, if a new crypto enthusiast goes through an experience like this, basically a new crypto market hater would go to social media and spread the word that the whole industry is a fraud.
Current Market Liquidity
One notable thing about crypto markets and industry, in general, is that despite the speculative spikes, one could see a slow but steady adoption. It is reflected not only in the real-world use cases, a growing number of wallets, and on-chain transactions but also in the growing liquidity of the crypto market in general. It can be seen when looking at the crypto trading volume on major exchanges 2020 volumes are much higher than in 2017 or 2018 when BTC was all over the news with an all-time high price of $18,000-$20,000.
Though undeniably growing in general, crypto liquidity is shifting. Some of these shifts represent secular trends such as growing liquidity of derivative and margin exchanges vs the spot exchanges, and some are cyclical, such as periodic shifts from BTC to altcoins (altseason) and back, or the evergreen ‘flippening’ of BTC and ETH.
Liquidity definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Liquidity can be defined as: Availability of resources to meet short-term cash requirements. Liquidity has to do with our ability to pay for short term obligations, whether they be short term debt or operational needs.
Google sent shockwaves around the internet last month when it was claimed the search giant had built a quantum computer able to solve formerly impossible mathematical calculations–with some fearing bitcoin could be at risk.
Details of Google’s so-called “quantum supremacy,” meaning it can solve calculations impossible with traditional computers, were posted to a Nasa website before being deleted, it was claimed by the Financial Times, a business newspaper.
Google’s quantum supremacy could mean it is able to perform in 200 seconds what would take a powerful computer 10,000 years and potentially mean bitcoin, and the encryption that underpins it, could be broken.
Bitcoin, cryptography, and encryption rely on complex mathematical problems and the fundamentals provide the basis of the internet and digital communication trust.
A powerful enough computer, similar to Google’s quantum computer, could solve these classical equations quickly enough to crack not only bitcoin but also the encryption that the internet is built on.
However, steps can be taken to prevent the likes of Google or any other quantum computer breaking into bitcoin and digital communication.
“Cryptocurrencies can be updated with quantum resistant tech,” said Charles Hayter, chief executive of bitcoin and cryptocurrency data website, CryptoCompare. “This is just a continuation of the age old arms race between crackers and enciphers.”
It would appear Google is still some way away from building a quantum computer that could be a threat to bitcoin or other encryption.
“Google’s supercomputer currently has 53 qubits,” said Dragos Ilie, a quantum computing and encryption researcher at Imperial College London.
Qubits, or quantum bits, are the basic unit of quantum information which use the properties of a quantum system, such as the polarization of a photon or the spin of an electron, where as traditional computers store and process data as a series of ‘1’s and ‘0’s.
“In order to have any effect on bitcoin or most or most other financial systems it would take at least about 1500 qubits and the system must allow for the entanglement of all of them,” Ilie said.
An explosion in the bitcoin price in recent years has made a lot of people nervous about what quantum computing could mean for bitcoin.
Coindesk
Google may not even be as far along as thought, with subsequent reports suggesting the original post was removed from Nasa’s website because it had not been confirmed.
Meanwhile, scaling quantum computers is “a huge challenge,” according to Ilie.
“As you add more qubits the system becomes more and more unstable … [though] researchers can try different approaches for solving these issues so maybe there are ways to mitigate these problems but right now we are quite far from breaking bitcoin.”
In short, “don’t dump your bitcoins yet,” Ilie added.
I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.
Everyone should see it! Click here! http://youtube.com+watch=@3162039724/… Best cryptocurrency exchanger: https://700.by/101 Best cryptocurrency trading platform: https://700.by/102 The crypto community is reacting to a new report claiming Google has achieved a massive breakthrough in quantum computing. According to the Financial Times, a leaked document written by Google’s researchers says the company has achieved “quantum supremacy.”
In other words, Google has created a quantum computer that can perform a calculation that no other computer on earth has the power to process.“A paper by Google’s researchers seen by the FT, that was briefly posted earlier this week on a NASA website before being removed, claimed that their processor was able to perform a calculation in three minutes and 20 seconds that would take today’s most advanced classical computer, known as Summit, approximately 10,000 years.”
Quantum computers use the properties of atoms and molecules to create systems that can simultaneously explore multiple possible solutions to a problem. Many experts believe quantum tech could be used to crack the modern methods of cryptography that keep the internet secure. The threat to the world of cryptography is real enough that the National Security Agency (NSA) is now working to create new techniques that are resistant to quantum computing. News of Google’s apparent breakthrough made it to the front page of the cryptocurrency subreddit, where crypto proponents pondered the potential impact the advancement could have on blockchain technology.
The question is if and when quantum computing can crack the long strings of letters and numbers known as private keys, which Bitcoin users need to access their funds. So far, Google’s researchers say their quantum computer can “only perform a single, highly technical calculation,” indicating it will still take years until the technology can solve real-world problems.
But according to the document cited by the Financial Times, Google expects the tech to evolve at twice the speed of traditional computer processors. Steve Brierley, an adviser on quantum technologies to the UK government, says Google has taken a major leap forward.“It’s a significant milestone, and the first time that somebody has shown that quantum computers could outperform classical computers at all. It’s an amazing achievement.”So far, Google itself has refused to comment. #quantum#cryptocalculator#bitcoinblockexplorer#cryptocurrencynews#cryptocurrencyexchange#cryptonews#cryptoexchange Will Google’s ‘Quantum Supremacy’ Achievement Break Bitcoin: https://www.youtube.com/watch?v=haRLj…
Everyone’s seen them: friends posting pictures of themselves now, and years in the future.
Viral app FaceApp has been giving people the power to change their facial expressions, looks, and now age for several years. But at the same time, people have been giving FaceApp the power to use their pictures — and names — for any purpose it wishes, for as long as it desires.
And we thought we learned a lesson from Cambridge Analytica.
More than 100,000 million people have downloaded the app from Google Play. And FaceApp is now the top-ranked app on the iOS App Store in 121 countries, according to App Annie.
While according to FaceApp’s terms of service people still own their own “user content” (read: face), the company owns a never-ending and irrevocable royalty-free license to do anything they want with it … in front of whoever they wish:
You grant FaceApp a perpetual, irrevocable, nonexclusive, royalty-free, worldwide, fully-paid, transferable sub-licensable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, publicly perform and display your User Content and any name, username or likeness provided in connection with your User Content in all media formats and channels now known or later developed, without compensation to you. When you post or otherwise share User Content on or through our Services, you understand that your User Content and any associated information (such as your [username], location or profile photo) will be visible to the public.
That may not be dangerous and your likeness may stay on Amazon servers in America, as Forbes has determined, but they still own a license to do whatever they want with it. That doesn’t mean the app’s Russian parent company, Wireless Labs, will offer your face to the FSB, but it does have consequences, as PhoneArena’s Peter Kostadinov says:
You might end up on a billboard somewhere in Moscow, but your face will most likely end up training some AI facial-recognition algorithm.
Whether that matters to you or not is your decision.
But what we have learned in the past few years about viral Facebook apps is that the data they collect is not always used for the purposes that we might assume. And, that the data collected is not always stored securely, safely, privately.
Once something is uploaded to the cloud, you’ve lost control whether or not you’ve given away legal license to your content. That’s one reason why privacy-sensitive Apple is doing most of its AI work on-device.
And it’s a good reason to be wary when any app wants access and a license to your digital content and/or identity.
As former Rackspace manager Rob La Gesse mentioned today:
To make FaceApp actually work, you have to give it permissions to access your photos – ALL of them. But it also gains access to Siri and Search …. Oh, and it has access to refreshing in the background – so even when you are not using it, it is using you.
The app doesn’t have to be doing anything nefarious today to make you cautious about giving it that much access to your most personal computing device.
I forecast and analyze trends affecting the mobile ecosystem. I’ve been a journalist, analyst, and corporate executive, and have chronicled the rise of the mobile econom
Helsinki-based peer-to-peer exchange LocalBitcoins has reportedly removed the option allowing users to buy or sell cryptocurrencies in person for cash.
In a Reddit post Sunday, a LocalBitcoins user pointed out the option was no longer available on the platform, though commenters some suggested the restriction might be limited to the U.S..
The removal of the option – which basically acts as a matchmaker for users to make trades in person – effectively bars LocalBitcoin users from selling and buying bitcoin for cash. LocalBitcoins has also cancelled pending fiat trades, other comments suggest.
The platform has not yet made an official announcement about the change on its blog or Twitter.
In response to the move, LocalEthereum announced has temporarily removed the trading fee on cash-in-person exchanges – effective June 1 to July 1.
LocalBitcoins’ move comes after the company announced in February that it would comply with the European Union’s (EU) new anti-money laundering directive.
Several other P2P cryptocurrency trading platforms still offer an in-person cash option.
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