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Tuesday Trades: NVIDIA to Re-Enter Crypto Mining Market?

NVIDIA considers re-entering the Bitcoin mining market. Meanwhile Joe Biden officially announces Gary Gensler as his pick as the next chairman of U.S. SEC.

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Good morning. Today, NVIDIA considers re-entering the Bitcoin mining market. Meanwhile Joe Biden officially announces Gary Gensler as his pick as the next chairman of U.S. SEC.

Welcome to Tuesday Trades, part of our new series: BitPinas Daily. We will look at the price of Bitcoin, Ethereum and the major cryptocurrencies. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad. 

Market Price as of January 19, 2021:

Bitcoin $36,598.11 +2.39%
Ethereum $1,253.91 +2.00%
Tether $1.00 +2.04%
Polkadot $16.41 -3.13%
XRP $0.284455 +2.67%
SLP $0.015 +25%

Bitcoin closed January 18, 2021, at $36,598.11 per BTC. We’re up 3.1% in the last 7 days and up 26% since the year began. This is 12% below the previous all-time high of $41,940, which was hit on Jan. 8, 2021.

Bitcoin’s market capitalization stands today at $684,350,016,810 which is 64.99% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $1,048,327,289,415 (+1.4%).

On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.

Table of Contents.

NVIDIA

NVIDIA considers re-entering bitcoin mining market

NVIDIA is a company and brand especially popular in the video game market for making graphics processing units. During the 2017 crypto boom, NVIDIA’s rigs were of course extremely popular and profitable but every quarter, the company would report that its gaming segment continued to grow and that its cryptocurrency-related revenue remained small. 

However, the subsequent market crash hurt the company A LOT and NVIDIA forecasted a significant decline in revenue, which caused the investors to file a case against NVIDIA for misleading them about how much the company relied on its crypto-related business. For them, it made no sense that there would be a significant decline in company revenue if quarter after quarter NVIDIA would report that their crypto business are just a small portion of their revenue.

The legal battle between NVIDIA and these investors continues until now.

Any way, in a recent statement to shareholders, the company’s Chief Financial Officer Colette Kress said if crypto demand continues to increase, they may revisit this segment and restart their CMP product line — think NVIDIA’s product without all the video elements and only capable of doing one thing – validating crypto transactions on the blockchain to earn crypto. 

“If crypto demand begins or if we see a meaningful amount, we can also use that opportunity to restart the CMP product line to address ongoing mining demand,” Kress said in a statement.

“Decompose”

Coinbase will decompose its application server in wake of recent outage

Coinbase has been hit by outages in recent weeks. Actually, it almost always crashes whenever the price of bitcoin reaches particular milestones. It always happens that it’s now a meme. 

Last week, the Coinbase team said it is going to decompose its application server so that it would have different scaling profiles for the functions that its API serves. “Thus, if one surface is affected somehow, it will only affect the APIs or functionality that the particular surface is responsible for, instead of taking down the entire system,” Saniya More reported for The Block

New U.S. SEC Head

Joe Biden appoints Gary Gensler

Gary Gensler, a professor at MIT and former chairman of the Commodity Futures Trading Commission, has officially been announced by U.S. President-elect Joe Biden to chair the powerful commission formerly led by Jay Clayton. 

We have an entire column dedicated to Gary Gensler in this article on what his appointment would mean for the cryptocurrency industry as a whole. 

Case in point, Brad Garlinghouse, head of Ripple, a company that owns a sizable amount of XRP, said in previous interviews that he expects the Biden administration to be open-minded about cryptocurrencies.

Before Clayton resigned, he did a power move. In his last day of office, he unveiled that the U.S. SEC has charged Ripple of illegal (and continued) sale of securities (XRP coins).

While Gensler is very knowledgeable on blockchain and cryptocurrencies (he even teaches an online crypto course,) analysts expect him to be in favor of tougher regulation. I assume Ripple and everyone else in this game, including Coinbase, which is waiting SEC approval to go public, will be looking forward and planning ahead with regards to when Gensler finally takes the chair.

Institutional Adoption

Ruffer: We are in the foothills of institutional adoption for Bitcoin

According to institutional firm Ruffer Investment Company, which made headlines last year for putting $74 million into bitcoin, that they put up a portion of their money into digital currency is just a usual day at work for them because they have a history of using “unconventional protections.” Bitcoin, for Ruffer, is an unconventional protection during prolonged periods of low interest rates, Ryan Weeks reported on The Block.

Ruffer thinks they are relatively early into this, thus they are “at the foothills of a long trend of institutional adoption and financialisation of bitcoin.”

Of course, Ruffer said this is a bet and they could be wrong. 

“As we move through the process of normalisation, regulation, and institutionalisation, the compression of this premium can have a dramatic effect on the price. If we are wrong, bitcoin will return to the shadows and we will lose money – this explains why we have kept the position size small but meaningful.

#CryptoPH

If you are a crypto company or project in the Philippines or in the Filipino diaspora, let us know your story. 

What else is happening

  • Bitcoin struggles to recover after biggest weekly price loss since September 
  • Former Canadian Prime Minister lists bitcoin as possible future reserve currency
  • CoinShares is starting an exchange-traded bitcoin product
  • Crypto exchange Livecoin closes after alleged hack
  • Pantera Capital: This rally looks different than 2017
  • #23.94 billion total value locked in DeFi

This article is published on BitPinas: Tuesday Trades: NVIDIA to Re-Enter Crypto Mining Market?

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Source: https://bitpinas.com/cryptocurrency/tuesday-trades-nvidia-to-re-enter-crypto-mining-market/

Blockchain

Bitcoin EFT may come to US, but not all crypto investors think it’s needed

As Bitcoin ETFs launch in Canada, an approval from U.S. authorities appears to be closer than ever before as naysayers start to run out of reasons to deny it.

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The United States Securities and Exchange Commission’s floor is littered with failed crypto fund filings, but this year, following Canada’s lead, the U.S. might actually have an exchange-traded fund that tracks digital assets. 

After all, the price of Bitcoin (BTC) is booming, the SEC has a new crypto-savvy chairman, and Canada, which is sometimes viewed as a beta test site by U.S. regulators, debuted a Bitcoin ETF in late February that by most accounts has been stunningly popular. But does a crypto ETF really matter anymore?

Clearly, a lot has changed in the past year — what with a global pandemic, a change in administrations in Washington and new price records being set regularly on the crypto front. Whereas many predicted as recently as June 2020 that an SEC-sanctioned Bitcoin ETF would be a very “BIG Deal” and “open the flood gates” to BTC adoption, with a crypto ETF now on the brink, some observers aren’t so sure anymore.

“I used to think it would be a game-changer but now I think it would be just another step in the evolution of crypto,” Lee Reiners, executive director of the Global Financial Markets Center at Duke University School of Law, told Cointelegraph.

Eric Ervin, CEO of Blockforce Capital and Reality Shares and co-founder of Onramp Invest, told Cointelegraph: “I think a crypto ETF is less significant than we thought before because a lot of institutional investors finally got tired of waiting and figured it out.” Ervin’s firm was one of nearly a dozen whose application was sideswiped by the SEC — the Reality Shares ETF Trust application was pulled in February 2019 “on SEC advice.” That said, Ervin acknowledged that there “are still a massive number of investors on the sidelines” who might welcome such an investment option.

Meanwhile, applications to the U.S. agency keep flowing. Most recently, the Chicago Board Options Exchange requested permission to list a Bitcoin ETF proposed by asset manager VanEck.

State Street Corporation — one of the world’s largest custodians, with $38.8 trillion in assets under custody and/or administration — will be servicing the VanEck ETF, if approved. Nadine Chakar, head of State Street Global Markets, told Cointelegraph that the company is working to bring ETFs and exchange-traded notes to market in Europe and the Asia-Pacific region, adding that “Our clients have seen interest grow in Bitcoin and […] there is a feeling the market is maturing.” Indeed, in the three years since early 2018 when Bitcoin interest last peaked:

“They feel that the market has become more efficient, crypto custody solutions have evolved to offer better security that they are comfortable with, and regulatory clarity has increased such as we’ve seen with the OCC’s [Office of the Comptroller of the Currency] recent announcements.”

More success in 2021?

Has the crypto ETF climate really changed in Washington though? Michael​ Venuto, co‑founder and chief investment officer of Toroso Investments, told Cointelegraph: “I believe the odds of a U.S. Bitcoin ETF being approved are higher than in previous years.” Improved crypto custody, reporting and transaction transparency have calmed many regulators’ concerns, he said, and “The fact that BNY Mellon announced its move towards crypto custody on the same day as a Bitcoin ETF was approved in Canada is not a coincidence.”

“Investors have been looking to the US as the next potential market for ETFs that track digital assets,” wrote FTSE Russell, a subsidiary of London Stock Exchange Group that produces stock market indices, in a recent blog post, adding: “And speculation has only increased in recent weeks with the first Bitcoin ETF launch in Canada joining crypto ETP listings in Germany and Switzerland, as well as the continued popularity of the Grayscale investment trusts tracking this market.”

Regarding Gary Gensler’s nomination as SEC chairman, “This goes a long way towards advancing innovation in the US financial markets,” added Ervin, who agreed that the likelihood that U.S. regulators will approve a Bitcoin ETF this year has improved. He added further:

“As a former Chair of the CFTC, Gensler understands the importance of financial innovation, but he also has a healthy respect for the potential damage that unchecked markets bring.”

Reiners observed that based on what the SEC had been saying recently ETFwise — which isn’t much — a U.S. crypto ETF seems to be no closer than a year ago. However, when taking a broader look at the maturation of the crypto market and the subsequent institutional interest, he believes “It’s getting harder for the SEC to continue to say no.”

Is an ETF better than a trust?

But would an SEC-sanctioned ETF really be of major consequence now? What, for instance, does an ETF offer Bitcoin investors that current “trusts” like Grayscale Bitcoin Trust don’t?

GBTC and other trusts trade over the counter, not on major exchanges like the New York Stock Exchange, noted Reiners. By comparison, “An ETF is widely accessible to all,” including retail investors without access to OTC markets.

State Street’s Chakar noted that GBTC is essentially a closed-end fund open to qualified investors, and although shares of the trust are available on the secondary market to retail investors, those shares “are not tied directly to the price of Bitcoin. As such shares most times trade at a premium — or a discount — to the underlying price of Bitcoin.”

Venuto added further: “The ETF structure provides for intra-day creation and redemption to meet demand. This function removes the premium and discount issues which have impacted the pricing of GBTC” — though he opined that if regulators were to approve a Bitcoin ETF, “Then in short order they would allow GBTC to convert to a similar ETF like structure.”

Along these lines, Canada-based investment manager Ninepoint Partners, which launched a Bitcoin trust two months ago, this week announced plans to convert its trust to an ETF on the Toronto Stock Exchange — following other Canadian investment firms seeking to capitalize on the untapped crypto ETF market in the country.

More adoption?

If a U.S. crypto ETF comes to pass, how would it play out? Would it bring in more institutional investors, for example? “Many institutions can only invest in funds, so the ETF is a wonderful step in the right direction,” Ervin said.

Institutional interest will continue to build regardless of an ETF, opined Venuto: “In terms of institutional adoption, that ship has sailed. […] An ETF will be primarily used by individual investors and financial advisors.”

“An ETF is more attractive to both institutions and retail investors in that it does tend to carry much less liquidity risk and more transparency to the underlying price of the asset — and fees associated with it,” said Chakar.

But what about Bitcoin and cryptocurrency adoption in general? Would a U.S. crypto ETF transform that landscape? Reiners told Cointelegraph:

“There are now lots of ways for retail investors to get exposure to crypto, and the list keeps growing. Plus now we have Tesla and other public companies investing in Bitcoin. The barrier between the crypto sector and the traditional financial system has been eroding for several years now; a Bitcoin ETF would further blur this boundary.”

Regarding Tesla, MicroStrategy and other public companies that have purchased Bitcoin recently, Chakar told Cointelegraph that “Investing in a company that has publicly acknowledged that it’s buying Bitcoin is probably not what most institutional [investors] would do to gain exposure to the asset.”

She added that crypto has been around for 10-plus years now, “But it has never been packaged in a way that allows for integration into a portfolio that is seamless.” By comparison, “ETFs have proven themselves to be a preferred and growing investment alternative thanks to the fact they offer a lower cost, liquidity and tax efficiency that direct investments may not, especially in nascent vehicles like Bitcoin.” Ervin told Cointelegraph that he likes the idea of an ETF for things like gold or silver, but for him, “Wrapping bitcoin up into a fund seems silly to me.” He added:

“There is no doubt that it is a better vehicle than a closed-end product, and competition will bring better fees and price discovery, but I don’t think most investors realize that they can buy Bitcoin directly without worrying about the cumbersome burden and costs of a fund.”

“Bitcoin doesn’t need an ETF”?

All in all, it looks like a U.S. crypto ETF will eventually come. As Reiners noted: “Regardless of their [the SEC’s] view on the merits of an ETF, if they are the lone holdouts, you have to wonder how much longer before they cave to the immense pressure and interest for an ETF.”

Under present circumstances, a U.S. government-approved Bitcoin exchange-traded fund may not be the game changer that some once predicted. A year ago, most didn’t anticipate the current institutional absorption of digital assets.

As Macrae Sykes, portfolio manager and research analyst at Gabelli Funds — an investment management firm — told Cointelegraph, institutional interest in cryptocurrency continues to grow. Coinbase’s initial public offering filing and Bank of New York Mellon’s recent announcement that it will support digital currencies offer further evidence of potential growing demand: “The ETF approval in Canada is just another step in the evolving regulatory process for accessing digital assets.”

“Bitcoin doesn’t need an ETF,” Venuto told Cointelegraph. Still, even if no longer a game changer, there is little for a crypto enthusiast not to like about an SEC-sanctioned crypto ETF: “Access is access and the more access to the asset class, the better,” said Ervin. After all, “Not everyone wants to own bitcoin directly.”

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Source: https://cointelegraph.com/news/bitcoin-eft-may-come-to-us-but-not-all-crypto-investors-think-it-s-needed

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Centra Tech Co-founder Bags 8-Year Jail Term For ICO Scam

The co-founder of the fraudulent crypto investment firm, Centra Tech, Sohrab Sharma has been sentenced to eight years in prison for his role in duping […]

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The co-founder of the fraudulent crypto investment firm, Centra Tech, Sohrab Sharma has been sentenced to eight years in prison for his role in duping investors out of more than $25 million.

Ilan Graff, the Deputy United States Attorney for the Southern District of New York described Sharma as a fraud who co-founded a startup with the intention of deceiving investors with bogus business partnerships, bogus licenses and fake crypto-related financial products.

Sharma Dupes Investors Of Millions

Sharma and his cohorts, Robert Farkas and Raymond Trapani founded Centra Tech around July 2017 after which they conducted an Initial Coin Offering (ICO) where they distributed unlicensed securities in the form of CTR tokens. The ICO, which is similar to an IPO where a company raises capital for a new crypto offering, had them raise $25 million at its completion.

For the offering to indeed be successful, Centra Tech enlisted the services of celebrity Dj and musician, DJ Khaled as well as popular American boxer, Floyd Mayweather who both ran campaigns for it on their social media platforms.

Mayweather was said to have posted tweets of himself holding the startup’s debit card along with the caption, “Spending bitcoins Ethereum and other types of cryptocurrency in Beverly Hills…” After which he also made tweets urging fans to get their tokens ahead of the ICO’s launch. Dj Khaled in the same vein promoted the offering on his Instagram account.

Centra Tech also promoted the ICO by claiming the group had partnerships with Visa, Mastercard, and Bancorp, money transmitter licensing in 38 U.S. states. They also lied about having a Chief Executive Officer who had more than 20 years of experience in the banking sector and a master’s degree from Harvard University.

Following the uncovering of the crime committed by Sharma and his team, the U.S. Marshals Service seized 100,000 Ether from the company which it sold for roughly $33.4 million earlier this year.

ICO Ambassadors Settles With the SEC

Prior to Sharma’s sentence, Robert Farkas, co-founder and managing operator of Centra Tech was sentenced to one year in prison for his role in the scheme. Raymond Trapani also pleaded guilty.

DJ Khaled and Floyd Mayweather agreed to six-figure settlements without admitting to wrongdoing after Centra’s investors filed a lawsuit against the pair. This was after the investors failed to prove they bought tokens as a direct result of the pair’s actions.

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Source: https://insidebitcoins.com/news/centra-tech-co-founder-bags-8-year-jail-term-for-ico-scam

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Blockchain

Chainlink, Synthetix, Verge Price Analysis: 05 March

The altcoin market showed that market bears were in the ascendancy over the past week, with the same likely to continue over the next few days. Chainlink approached an area of demand at $25, while Syn

The post Chainlink, Synthetix, Verge Price Analysis: 05 March appeared first on AMBCrypto.

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The altcoin market showed that market bears were in the ascendancy over the past week, with the same likely to continue over the next few days. Chainlink approached an area of demand at $25, while Synthetix faced rejection at the $27-level. Finally, Verge flipped the $0.019-level to support, although this development could be short-lived.

Chainlink [LINK]

Chainlink, Synthetix, Verge Price Analysis: 05 March

Source: LINK/USD on TradingView

On the 4-hour chart, LINK registered rising bearish momentum as the RSI dropped below 50. It was noting a value of 40, at the time of writing, and faced an area of demand in the $24.8-$25.8 zone. This could see LINK bounce to retest the $27-level as resistance.

The imminent levels of interest seemed to be $27, as likely resistance, and $24.8, as support. A drop below $24.8 would see the bears push further and climb to touch the $23.24-level of support.

The $23.24-level has been tested as support multiple times since early February, and certain on-chain metrics did point to a fall in the number of LINK users, which, in turn, could see less demand and lead to further losses.

Synthetix [SNX]

Chainlink, Synthetix, Verge Price Analysis: 05 March

Source: SNX/USDT on TradingView

SNX was trading within a descending channel for the better part of February, and a few days ago, broke out of the pattern with a technical target of $27.

SNX tested the $24-mark as resistance but its attempts to climb any further were met with rejection. SNX has since steadily posted losses and lost the $21-level to the bears. The MACD formed a bearish crossover and began falling to show downward momentum.

Over the next few days, the $19.7 and the $18.5-$19 zone can be expected to serve as support.

Verge [XVG]

Chainlink, Synthetix, Verge Price Analysis: 05 March

Source: XVG/USDT on TradingView

The ascending trendline had some confluence with the retracement level at $0.019, and the market bulls were able to defend that level. Closing a trading session under the $0.0189-level would likely see XVG drop back towards $0.0165, while a breakout past $0.021 would be a bullish development. A move lower was the more likely scenario, given the general market conditions.

Even though the DMI showed the bullish trend gaining some strength in recent days, the trading volume was in disagreement with the rally. The Awesome Oscillator was moving above zero, but did not show bullish strength.


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Source: https://ambcrypto.com/chainlink-synthetix-verge-price-analysis-05-march

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