Ant’s MoneyGram fail becomes America First symbol 2 Jan 2018 Jack Ma’s financial offshoot has scrapped its $1.2 bln purchase of the U.S. cash-transfer company. The Alibaba boss made nice with Donald Trump early on, but his pledge to spark 1 mln American jobs wasn’t enough to get the deal past a new, and bipartisan, prickliness with China.
Once-stodgy banks will gain upper hand in fintech 27 Dec 2017 Scandals hit SoFi and Lending Club. Earnest’s down-round sale showed building scale is hard. Such ill fortune is a boon for traditional players as they start cranking out more of their own tech-enabled tools to improve customer service and cut costs. It’s their battle to lose.
Bitcoin insider trading lends veneer of normality 20 Dec 2017 Coinbase is investigating possible insider trading after the price of bitcoin cash surged just hours before the digital-wallet provider added the crypto-currency to its platform. Wealth always attracts fraudsters. And that, in turn, strengthens the case for regulation.
Chancellor: Bitcoin speculators face total wipeout 13 Dec 2017 Bubbles - in tulips, railroads or the Mississippi Co - aren’t just about the madness of crowds - nor are they simply manifestations of excess money. And they always offer a premonition of the future. Whatever the future for crypto-currencies, it’s clear that bitcoin has none.
Crude-backed crypto-coin is mostly snake oil 8 Dec 2017 An ex-CFTC commissioner is launching a digital currency backed by the commodity. His promise of stable value sits oddly against bitcoin’s wild ride. While it offers a tax edge over oil-backed ETFs, it’s hard to imagine this coin existing if not for the wider crypto craze.
Bitcoin looks like speeded-up unicorn hype 7 Dec 2017 A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.
ICO bust heralds U.S. crypto-currency rules chaos 4 Dec 2017 The SEC has taken its first action against a coin offering, alleging the perpetrators fraudulently raised $15 mln. The CFTC, though, just gave the green light to bitcoin futures. The growing regulatory discord on virtual currencies increases the risks to investors.
Chinese fintech Qudian dangerously reverses IPO 5 Dec 2017 The $4.1 bln micro-lender backed by Alibaba's Ant Financial intends to buy back a big slug of the stock it just debuted in October. The plan follows China's crackdown on the industry. With the full implications unclear and a share-lockup expiry looming, Qudian's move is risky.
Wall St poised to stop worrying and love bitcoin 1 Dec 2017 Crypto-currencies are set to take center stage. Mike Novogratz is launching a hedge fund, exchanges are teeing up futures contracts, big banks are likely to enter the fray and even the Fed is taking notice. It may end in tears, but the industry won’t ignore a $300 bln market.
Guest view: Bitcoin bubble obscures real worth 30 Nov 2017 Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.
Chinese micro-lender has big problems 22 Nov 2017 Beijing is clamping down on online outfits that issue small-ticket loans to Chinese consumers. The regulatory uncertainty has spooked investors in the rapidly growing industry. It is another reason why New York listing hopeful LexinFintech may have a tough ride.
The Exchange: Mike Novogratz 15 Nov 2017 From Goldman Sachs partner to Fortress founder and now bitcoin trader, the chief executive of Galaxy Investment Partners has something of a Midas touch. He swings by Times Square to talk about how he's making a killing with a new hedge fund betting on crypto-currencies.
PayPal’s future rests on striking quadruple whammy 19 Oct 2017 The $80 bln payments firm is worth as much as Amex and has a higher multiple than Visa or MasterCard. Justifying that means renewing its deal with ex-owner eBay, nailing lending and expanding its popular Venmo app to merchants. For now, PayPal looks well-positioned to succeed.
Qudian IPO feeds debt-hungry Chinese millennials 18 Oct 2017 The online lender backed by e-commerce giant Alibaba’s financial arm has priced its U.S. listing above expectations, says Reuters. It boasts fast growth, low defaults and - shockingly for tech - profitability. As young Chinese shoppers rack up debt, Qudian will keep earning.
Review: Ellen Pao cracked door for women in tech 29 Sep 2017 In "Reset," the venture capitalist recounts her decision to fight Kleiner Perkins in court over sexism, rather than settling. She lost, but several women have since publicly confronted the bro-culture of Silicon Valley at Uber, SoFi and beyond, yielding more promising results.
Crypto-currencies’ strength becomes their weakness 29 Sep 2017 Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.
Crypto-currencies can’t salvage hedge-fund junkies 27 Sep 2017 One-time star manager Mike Novogratz is pinning a comeback on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But as the former Fortress executive knows, that can be a trap. He was burned by a bad Swiss franc bet two years ago.
ZhongAn’s hit fintech IPO pushes lots of buttons 22 Sep 2017 The online insurer’s $1.5 bln Hong Kong listing turned into a blowout deal. No wonder: this is an unusual growth stock, with powerful backers and a story that should in time lure mainland investors too. Now the Chinese outfit just has to live up to its lofty valuation.
Next SoFi CEO needs both social and finance skills 15 Sep 2017 The foolish plan to keep founder Mike Cagney around amid a sex scandal has ended quickly. Whoever steps in will have to clean up the culture quickly. Growth targets also should be revisited at SoFi, last valued at $4.3 bln. Picking a woman with this talent mix might help, too.
China charges into burgeoning bitcoin battle 4 Aug 2017 The crypto-currency has been cloned, thanks to support from China's massive mining community. Although local trade has been suppressed by regulators, the People's Republic has managed to increase its influence over bitcoin's development by running the machines behind the market.