Winklevoss twins take strike two with crypto hype 11 Jul 2023 The founding brothers of crypto investment firm Gemini are suing the parent of bankrupt crypto lender Genesis over a soured deal that led to almost $1 bln in losses. The twins, known for their spat with Meta’s Mark Zuckerberg, are a bellwether of another messy tech hype cycle.
Capital Calls: Digital euro, Thames Water 28 Jun 2023 Concise views on global finance: Brussels is in a new push to convince EU member states and the European Parliament to endorse a digital euro; Britain’s Thames Water could be placed into special administration.
Hong Kong’s market promotions get shrill 28 Jun 2023 The city’s bourse is trying to lure foreign listings from Europe and the Middle East while regulators push local lenders to bank crypto exchanges. The first initiative is worthwhile but unlikely to yield much new business; the latter creates fresh headaches for HSBC and peers.
BlackRock puts bitcoin in a suit and tie 22 Jun 2023 The asset manager’s application to launch a bitcoin ETF ticks at least one box that other firms’ applications didn’t. If the SEC approves, it would make the oldest cryptocurrency easier to hold and more legitimate in the eyes of Wall Street investors – but still with far to go.
Crypto is dead: long live crypto! 16 Jun 2023 Already reeling from fraud and falling prices, cryptocurrencies suffered a fatal blow with US charges against two leading exchanges. Yet Felix Martin argues that the demise of speculative digital tokens may help revive their original purpose as private global currencies.
Capital Calls: London crypto move, Stellantis SPAC 12 Jun 2023 Concise views on global finance: British Prime Minister Rishi Sunak welcomes Andreessen Horowitz’s UK office just as cryptocurrencies face a regulatory crackdown in the US; the European carmaker’s move to back a London blank-check vehicle is less hairy than it sounds.
Coinbase investors are still aiming for the moon 9 Jun 2023 A lawsuit from the US Securities and Exchange Commission poses an existential risk for the crypto exchange. Yet it’s still valued at more than $11 bln, excluding spare cash. Loyal shareholders are betting CEO Brian Armstrong can avoid the crackdown – and find new ways to grow.
Capital Calls: Bitcoin is last crypto standing 6 Jun 2023 Concise views on global finance: SEC action against crypto exchanges Binance and Coinbase clarify the regulator’s thinking on which cryptocurrencies it deems to be securities. The lawsuits threaten every digital token except bitcoin, whose design makes it an outlier.
Binance charges are a last gasp for crypto 5 Jun 2023 The SEC sued the world’s largest cryptocurrency exchange saying it misled investors and evaded securities law. Even if Changpeng Zhao’s firm works through regulatory investigations, dabblers will become even more shy, and diehards will pivot further to decentralized exchanges.
Capital Calls: Crypto mysteries, HSBC 5 May 2023 Concise views on global finance: A court decision adds pressure on the US SEC to say which digital assets are securities, which would bring clarity to Coinbase and others; None of the $150 bln global bank’s big investors other than Ping An back an AGM breakup proposal.
Digital “Chicago Plan” fixes many financial woes 28 Apr 2023 In the 1930s, economists drew up a radical blueprint to create safer banks. The advent of digital currencies issued by central banks is an opportunity to revisit the idea, writes Edward Chancellor. A shift could stabilise banking, reduce inflation, and even lower government debt.
Coinbase will force SEC to quit ghosting crypto 25 Apr 2023 It’s been eight months since Coinbase asked securities watchdogs to clarify how digital assets will be regulated. Now the world’s second-largest crypto exchange is suing for an answer. The legal battle will decide the fate of the trillion-dollar cryptocurrency industry in the US.
Capital Calls: Dogecoin, Boutique M&A deal 5 Apr 2023 Concise views on global finance: The Shiba Ibu breed associated with the crypto token turned up as Twitter’s logo and might catch the eye of securities watchdogs; The Raine Group not only is advising WWE on its blockbuster $21 bln merger, but inked an acquisition of its own.
Crypto hangs on by an unraveling thread 28 Mar 2023 U.S. agencies targeted Coinbase and Binance for how they engage with customers. A crypto deal is being blocked. A respected stablecoin lost its peg. As FTX founder Sam Bankman-Fried is charged with bribing Chinese officials, it’s clear digital currencies’ issues weren’t just his.
Bitcoin is a solution looking for a problem 24 Mar 2023 Peter Thiel says the cryptocurrency is an inflation hedge, and bitcoin’s price has soared since Silicon Valley Bank’s collapse. But his actions don’t match that advice, and the Fed’s backing of the system is antithetical. Plus, importantly, bitcoin, unlike gold, is speculative.
Capital Calls: Nike, Stablecoins, Meme stocks 22 Mar 2023 Concise views on global finance: The Air Jordan maker grew quarterly revenue 14% despite inventory woes and China’s slow reopening; diverging demand for Circle and Tether cryptocurrencies raises questions about how investors are assessing risk; and GameStop’s shares surged 40%.
Bad news salvo gives Bank of Japan some cover 16 Mar 2023 The collapse of U.S. lender Silicon Valley Bank knocked down sovereign bond yields. Consumption remains soft, and while Japan Inc is hiking wages by 3% on average, that’s well below inflation. There’s nothing to cheer, but it takes pressure off the BOJ to adjust rates.
Capital Calls: BlackRock and ESG, UK pensions 15 Mar 2023 Concise views on global finance: Bank ructions and inflation give Larry Fink, boss of the $8 trln asset manager, cover to talk about something other than climate change in his annual letter; Britain’s abolition of a retirement tax threshold is an expensive way to help the rich.
Capital Calls: Uber’s risky gig, Meta’s NFTs 14 Mar 2023 Concise views on global finance: A California court ruled in favor of classifying drivers as independent contractors, but investors may be overlooking other risks; after less than a year, Mark Zuckerberg’s $465 bln social media company is getting rid of its NFT capabilities.
Bank trouble could turn crypto into Monopoly money 7 Mar 2023 Silvergate Capital, once the bank of choice for now-bankrupt crypto exchange FTX, may be on the brink of insolvency. Its main competitors are pivoting away from digital assets. If Silvergate falls, crypto companies – already lacking liquidity – will struggle to turn digital assets into cash.