Many criminals have focused on these groups who do not have a deep understanding of cryptocurrencies and launched various scams. Recently, South Korea has seen one of the largest cryptocurrency fraud cases.

According to CCTV Finance Channel, South Korean police recently disclosed that At least 70,000 people have been defrauded for a total of about 3.85 trillion won, or about 22.1 billion yuan, which is more than twice the total accumulated losses of cryptocurrency crimes in South Korea in the past four years, making it the largest cryptocurrency fraud case in South Korea in recent years.

Under the guise of cryptocurrency investment, this exchange has used short-term high yields such as 300% as bait from August last year to defraud investors of funds and use newcomers’ funds to pay for the return on investment of old users, which is typical Ponzi scheme.

Most of the deceived people are elderly people who are drawn into the game by acquaintances and who don’t know much about cryptocurrencies. They invested in retirement funds and even mortgaged their real estate. Some elderly people attracted a family of 12 people and invested more than 570 yuan Ten thousand yuan, there are still people who still believe that they can make money back, and are unwilling to report the crime to the police.

There are more and more hot scams in the cryptocurrency market

In addition, the domestic police have also detected multiple cases of cryptocurrency fraud recently. Among them, a man in Suzhou was a virtual currency investment enthusiast. He strayed into the virtual currency investment scam and joined a WeChat group of “professionals” with only 210,000 yuan. There is 2,000 yuan left and cannot be withdrawn yet.

According to the police, the reason for the high success rate of this kind of investment fraud is that, on the one hand, the fraud gangs target people with investment needs; on the other hand, the scam gangs have also spent a lot of energy and impersonating investors in the micro-group. Sending fake screenshots of making money in the website to set off the atmosphere and let the victims gradually relax their vigilance.

Source: Fast Technology

(Source: Reuters) The leading electric car manufacturer Tesla (USA) will again accept vehicles pay in bitcoin when the process of “mining” this cryptocurrency is certified to use clean energy. Tesla CEO, Billionaire Elon Musk announced the above information on June 13 and immediately caused bitcoin to increase 5.1% in value, to $ 37,360.60 at 1:10 am on June 14 (Vietnam time). Billionaire Musk said Tesla will restore use bitcoin coin in payment transactions when “miners” certify that 50% of the electricity used to “mine” cryptocurrencies is clean energy and identify this as a positive trend in the future. Bitcoin and other cryptocurrencies are the “rewards” obtained after the process of “mining” with specialized miners that solve computational problems that allow linking blocks of transactions (blockchains). This process consumes a large amount of energy. In May, billionaire Musk announced Tesla will no longer accept bitcoin as a means of payment in its purchases. The announcement reverses Tesla’s decision in late March to accept payments in bitcoin and invest $1.5 billion in the digital currency. According to the graph of Bitcoin Mining Power Consumption Index produced by the University of Cambridge (CBECI), the energy use for “mining” cryptocurrency has increased continuously since 2016, even skyrocketing in 2020 and up The current level is 149 terawatt-hours (TWh), an all-time high.

Plan from El Salvador Bitcoin mining with volcanic energy?

Status: 10.06.2021 12:45 p.m.

Completely clean, completely renewable: El Salvador’s President Nayib Bukele plans to mine Bitcoins with the help of energy from volcanoes. This is how the country wants to get its high energy consumption under control. El Salvador wants to use geothermal energy from volcanoes for the energy-intensive mining of the crypto currency Bitcoin. President Nayib Bukele tweeted that he had commissioned the state-run geothermal electricity company LaGeo to work out a corresponding plan. The President is convinced that this is very cheap, 100 percent clean and renewable, does not generate any emissions and will develop quickly. There are more than a dozen volcanoes in El Salvador, many of which are still active.

Huge energy requirements

The immensely high energy requirement of Bitcoin mining has been discussed critically in public for a long time. The Cambridge Center for Alternative Finance (CCAF) is working on this topic and has created an index on it . The Cambridge Bitcoin Electricity Consumption Index is supposed to estimate in real time how much electricity is currently being used for mining. The data is then extrapolated to the year. The calculated value is currently around 111 terawatt hours. This corresponds roughly to the annual electricity consumption in the Netherlands. According to the Federal Environment Agency, Germany consumed around 553 terawatt hours in 2020. According to a study by Bank of America, the global Bitcoin industry emits a total of 60 million tons of CO2 annually, which corresponds to the emissions of around nine million cars.

Bitcoin as a means of payment …

A few days ago, Bukele announced that El Salvador would be the first country to introduce Bitcoin as legal tender . He expects the move to create thousands of new jobs in the Central American country. Among other things, taxes should be able to be paid in Bitcoin. Bitcoin is the most popular digital currency. It is not issued by a central bank, but created using a decentralized computer process known as mining. It is by no means clear whether it is even suitable as a means of payment.

… or as an object of speculation?

Because so far, cryptocurrencies have mainly attracted attention as speculative objects, the value of which is subject to extreme fluctuations: Bitcoin was quoted at more than $ 55,000 around May 10, and is currently around $ 36,000. If the value of part of the income is exposed to such strong fluctuations within a very short period of time, this poses a number of problems for a state budget policy. The high volatility of cryptocurrencies is also an incalculable risk for companies. The US electric car maker Tesla, for example, started in March of this year To accept Bitcoin as a means of payment for its vehicles and reversed this step a little later . As a justification, Tesla boss Elon Musk referred to the “insane” energy consumption of prospecting. But it is likely that Musk, as a businessman, at least had these price fluctuations in mind.

Scam notice on DeFi100 website. Screenshots. “We fooled everyone and nobody could do anything about it,” said the statement, signed by Devsin, who is said to be the head of the DeFi100 project. According to the above information Coinmarketcap , DeFi100 is a project to create a simulated value fund, that is, the value of D100 issued will depend on the total value of the decentralized financial market (DeFi). The team that developed this project took the name Wrapp3D, but all members hid their true identities. This project’s D100 coin has been released on the Binance Smart Chain network since February. After that, some users warned about the dangers of DeFi100. On Twitter, user Tom suggested that DeFi100 was originally intended to issue a token with a price-adjusted supply (rebase token). However, when this plan failed, they planned to switch to the liquidity pool model. “This whole project is a scam. Devsin manipulates and deceives investors,” user Tom asserts. The price of D100 coin has been decreasing steadily over the past week, and dropped sharply after the scam information. Screenshots. According to the account Mr. Whale on Twitter, who claims to be a crypto analyst, total scams from the DeFi100 project amounted to $32 million. “When the market is no longer going up, many projects will disappear. Don’t be surprised that many scam projects will be reported in the next few months. Never invest in projects that are too new, with development teams. anonymous development, created as a joke and has no real purpose”, account Mr. Whale warned. According to the CoinDesk , does not rule out the possibility that DeFi100’s website was hacked to post the aforementioned notice. By the morning of May 23, the notice on the DeFi100 website had been removed. The value of the D100 coin has fallen nearly three times in the past week, from $0.2 to $0.077. DeFi100’s Twitter account has had no new announcements since March. In the crypto world, a developer scam is also known as a “rug pull”. This is a fairly common form of fraud, especially with decentralized finance (DeFi) projects, when all transactions are conducted by code, not by an organization.

Photo: Forbes In the past, Elon Musk has repeatedly compared bitcoin and fiat money. He also often shares about cryptocurrencies that make the value of coins like bitcoin or dogecoin fluctuate greatly. Photo: INC In February, the value of bitcoin skyrocketed after Tesla revealed it had bought $1.5 billion worth of the coin. Besides, the electric car company also confirmed that it will soon accept bitcoin as a means of payment when buying a car. Photo: Forbes Even so, the bitcoin price plummeted after the billionaire announced in May that Tesla would not accept bitcoin for car purchases due to environmental concerns. Earlier this month, he also called dogecoin “a rush” while appearing on “Saturday Night Live.” The price of the coin bearing this dog symbol then also plummeted. Photo: CBN However, a few days ago, Elon Musk made the market “crazy” when he emphasized that he had never and will not sell dogecoin.

The creator of Ethereum claims that the ‘Elon effect’ will gradually lose influence on cryptocurrencies Vitalik Buterin, the “father” of Ethereum recently gave an exclusive interview with CNN about the recent volatility of the cryptocurrency market. The 27-year-old billionaire said that “the crypto market is in a bubble” and “it is very difficult to predict” when this bubble will burst. According to him, the “golden age” of digital currencies has passed and this crisis can last for several months. Earlier, on the morning of May 19, Coinbase recorded that Ethereum, Buterin’s “pet”, fell more than 40%, to below $ 1,900. By the morning of May 20, this coin had recovered to $ 2,700, however, this is still a low number compared to the record milestone of $ 4,384 that Ether achieved on May 11. The ups and downs of the Ether coin have made Buterin “father” pay a significant price when he is holding an asset worth about $ 1.1 billion, now reduced to only about $ 870 million. At the age of 27, Vitalik Buterin, a Russian-Canadian programmer, is already considered a veteran founder in the tech world having seen multiple cryptocurrency boom cycles over the past few years. “We’ve seen at least three crypto bubbles burst. Usually the reason bubbles end is because something happened. This shows that the technology of cryptocurrencies is still there. not ready,” Buterin said. Since late 2013, when preparing for the launch of Ethereum two years later, Buterin has expressed his vision for cryptocurrencies. According to Buterin: “Cryptocurrency has become more than just a toy. It is almost ready to become mainstream.” In the process of developing “pet” Ethereum, Buterin is also not afraid to assert that there is a possibility that Ethereum will eventually catch up and surpass Bitcoin in market value. However, the programmer also said that the cryptocurrency market tends to be “vulnerable” to disruptive events, before they can “build an immune system over time”. Typical is the influence of some billionaires who are treating cryptocurrency as a toy. Mr. Buterin isn’t shy about mentioning Elon Musk’s name: “Mr Musk’s tweets are something the crypto space has only been getting into for the first time in recent months, literally. I think it’s appropriate. It’s reasonable to expect a bit of madness. Because the market will learn a lot from that and will be immune to the Elon Musk effect.” In addition, Mr. Buterin also asserted that governments cannot completely ban but have the ability to block or restrict access. Therefore, the development of cryptocurrencies also needs to listen to regulations from regulatory agencies to avoid getting into legal troubles. Faced with the crisis of digital currency, the “father” of Ethereum thinks that this is a “quiet” for digital currencies to renew themselves. On the Ether side, Mr. Buterin said the coin’s transaction costs will soon be cut. A major technical overhaul is underway that will allow Ether transactions to quickly scale, while cutting the amount of electricity consumed by mining by 1,000 to 10,000 times. “We’re going to go from consuming energy similar to a medium-sized country to just consuming energy like a village,” Buterin said confidently. According to Buterin, if Ether’s competitors don’t reform technically, Ether will soon outstrip them, such as Bitcoin.

This coin is developed based on the Binance Smart Chain platform and is tradable similar to Bitcoin or Dogecoin. Currently, STOPELON is priced at about 0.0000537493 USD/VND. However, buying and selling this coin is quite complicated. The issuer only allows users to trade on the PancakeSwapv2 exchange. The symbol of the coin STOPELON. Photo: ManOfMany. Even so, the developers have some policies to make STOPELON attractive to investors such as 6% refund of transaction fees. The destruction rate of this coin is 40% of the total 1 trillion coins to fight inflation. STOPELON shows the anger of investors with billionaire Tesla when this coin once had a strong growth of more than 4,000% in just 1 day. In addition to STOPELON, the market also has available cryptocurrencies created to oppose Elon Musk such as FuckMusk, FElon… According to the InputMag , Elon Musk has made a lot of profit after the crypto craze. However, investors believe that the market volatility created by Musk will soon come to an end.

Bitcoin plunged sharply on the morning of May 13 At 7 a.m. this morning, Bitcoin’s price on Coindesk was just over $ 47,000 / BTC, down $ 10,000 / BTC compared to last night. Meanwhile, on Coinmarketcap, Bitcoin also fell at a similar rate, to close to $ 49,000 / BTC. Thus, after peaking at $ 64,000 in mid-April 2021, Bitcoin never stopped going down and repeatedly broke the $ 50,000 / BTC mark. Along with Bitcoin, a series of other virtual currencies also turned red, the market capitalization decreased by more than 10%. Ethereum decreased by nearly 5%, BNB decreased 8.2%, XRP decreased 10%, BCH decreased 16%, LTC decreased nearly 15% … Some other virtual currencies even decreased 15-40%. Notably, Shiba Inu, a virtual currency “junk” is crazy about investors because the hot rise recently fell by nearly 35% in just half a day. The virtual money market fell vertically because yesterday, billionaire Elon Musk, CEO of Tesla announced “suspending the purchase of cars with Bitcoin” due to environmental concerns. Earlier in March, Elon Musk revealed that US customers can use bitcoin to pay for Tesla cars. “Tesla has suspended the purchase of cars with Bitcoin. We are concerned about the rapid increase in the use of fossil fuels to mine and trade Bitcoin, especially coal, the most polluting fuel. Cryptocurrency is a good idea on many levels and we believe it has a promising future. However, that cannot come at an environmental cost, “the billionaire explained. This billionaire unlike anyone has repeatedly made headlines in the virtual currency market by sudden decisions. However, he also asserted that Tesla did not sell any Bitcoin and intends to use it for trading as Bitcoin mining uses more sustainable energy. Yesterday, this tricky billionaire also gave a consultation on his personal Twitter page about whether Tesla should accept payments in dogecoin. The survey received millions of responses, of which the majority approved. The event comes just days after the billionaire revealed that SpaceX has accepted Dogecoin to pay for his lunar trips. Dogecoin virtual currency was “born” as a joke in 2013 by computer engineer Billy Markus and Adobe marketing expert Jackson Palmer suddenly got waves when billionaire Elon Musk invested and praised many times. on the personal page. However, the billionaire himself has repeatedly made statements to make this virtual currency “on elephants, down dogs”. Over the past 24 hours, Dogecoin has decreased in price by nearly 14%. From the beginning of the year until now, many banks, investment funds, and financial institutions announced to invest in bitcoin or accept payments in Bitcoin. However, with only a few individuals’ moves, this market still plunged without braking, this shows the great risk of this market. Even billionaire Elon Musk, while initiating and pioneering large corporations to invest in virtual money, said that people should not invest life savings in digital money because it is “not wise. good “. According to billionaire Musk, there is a possibility that digital money will become the main currency on earth, but no one knows what kind of currency it will be. Therefore, the investment in that time should be considered.

Dogecoin – a cryptocurrency that was born as a joke – has a market cap of more than $ 66 billion. In addition to Bitcoin, Ether and Dogecoin, CoinGecko tracks more than 7,000 other cryptocurrencies. However, according to Bloomberg Most investors want to observe Bitcoin and Ether – the two largest cryptocurrencies in the world. Bitcoin is designed as an exchange currency without the need for any intermediaries. This is a new form of money, verified through encryption technology in peer-to-peer (P2P) systems. The ledger (blockchain) records all Bitcoin purchases. Bitcoin is a store worth more than $ 1 trillion. However, it does not contain any buildings, executives, lawyers, political structures or employment organizations. Bitcoin also does not need an accounting even if it is a digital ledger. Bitcoin and Ether are the two most popular cryptocurrencies in the world. Photo: Reuters. Digital gold Bitcoin token does central work, security, and upgrades for new innovations. Mid-sized computer companies that manage machines carry out transactions. These are called “miners”, just like a digital mining company that mines digital gold. Because there are no intermediaries, Bitcoin can efficiently, inexpensively and unpolitically solve the problem of long-distance value transfers. So far, the Bitcoin system proves to be one of the most versatile technologies we have ever had. Bitcoin has little or no value when it was first activated in January 2009. By April 2021, Bitcoin’s price hit a record of nearly $ 65,000. And Ethereum was developed by Vitalik Buterin – a Russian Canadian teenager – in 2013. Initially, Buterin loved Bitcoin but quickly became dissatisfied with its limits. Buterin is determined to start building a system that can do more. His vision is to create a blockchain that stores smart contracts – executing specific tasks in case certain conditions are met. In other words, the only limit to transactions running on Ethereum is the imagination of the developers. Bitcoin’s price has risen almost 100% since the beginning of 2021, while the price of Ether has climbed nearly 400%. The question is what Ethereum borrowed from Bitcoin. It’s the idea behind a decentralized network that records purchases. Both systems are public and are built on open source software. Both also have miners. They perform complex calculations used to verify transactions and receive new types of digital currencies. The system also received criticism for its high energy consumption. One estimate shows that the Bitcoin network used more electricity than Sweden within a year. Bitcoin has been referred to as a form of “digital gold”. Of course, this cryptocurrency is highly volatile and has seen bubbles crash many times. However, some investors hold Bitcoin as a hedge against inflation due to the limited supply. Bitcoin price is also unaffected by other assets. Therefore, many investors use them to diversify their portfolios. Investors often view Ether as a type of growth investment. They bet on the development of a decentralized ecosystem built on top of Ethereum Phil Bonello Ethereum is also going through a development process. But the first boom happened in 2017 with a series of ICOs (first cryptocurrency releases). Many cryptocurrencies were born, used to exchange Ether and most used the Ethereum blockchain. Ether price then hit a record of 1,200 USD / dong. The second boom comes in 2020 as decentralized finance (DeFi) projects thrive. These startups pay interest on Bitcoin or Ether deposits, mortgage lending or cryptocurrency swaps on decentralized exchanges. The Ethereum network is therefore used for financial management, lending and mortgages. All without banks and brokers. Along with that is the hot development of irreplaceable tokens (NFT), a kind of virtual item that is authenticated by blockchain technology, with the digital signature of the owner. NFT is an indivisible, intact asset stored on the blockchain platform through a smart contract, non-destructive, verifiable, and has no second copy. The work has a name Ev erydays: The First 5000 Days Crypto artist Beeple’s was sold for $ 69.4 million at an auction by Christie’s. Threats of Bitcoin’s monopoly position The prices of Bitcoin and Ether have not fluctuated much between 2018 and 2020, also known as the “crypto winter”. But both benefit when governments pump money heavily into the economy to deal with the effects of the Covid-19 epidemic. MicroStrategy Inc. – a software and consulting firm – and billionaire Elon Musk’s electric car company Tesla has invested in Bitcoin. Wall Street and many other financial institutions are also starting to accept Bitcoin. Morgan Stanley and PMorgan Chase & Co. All open digital tracking channels for customers. Meanwhile, the price of Ether is driven by the activities going on on the world’s most popular blockchain. The company has undergone several upgrades to improve its network. The change is also likely to reduce supply. That will drive up the price by increasing the attraction and limiting the amount of Ether available. “Investors often see Ether as a type of growth investment. They bet on the development of a decentralized ecosystem built on top of Ethereum,” said Phil Bonello, Research Director at Grayscale Investments. , comment. Ether price peaked at more than 4,200 USD / dong on May 10. Photo: Coin Desk. The Ethereum network is used more than Bitcoin, and countless developers are still working on. Bitcoin currently accounts for about 46% of the total cryptocurrency market value, down from 70% earlier this year. The rate of Ether is 15%. However, extreme legal or tax risks could threaten the growth of Bitcoin and Ether in a number of countries. Along with that is the risk of fraud or investors forget the digital financial code. Some observers consider the cryptocurrency boom a bubble. Large institutions – often referred to as “whales”, which hold huge volumes of cryptocurrency – can also adjust prices at will. Even crypto proponents argue that the sector is very volatile. However, Bitcoin and Ether have recovered from a downtrend over the years and are increasingly adopted as a mainstream financial asset.

Using this algorithm, Chia mining does not consume too much power because only the hard drive is free. Chia’s network has now mobilized more than 2,700 PiB (1 PiB = 1125.9 TB) of available hard drive space. Very quickly, Chia caught the attention of Amazon and launched a virtual money mining service in the cloud exclusively for the China region. The Amazon website also shows how to set up a cloud service to create a Split wallet, create a space, and how to mine in just 5 minutes. Dong Chia is being traded on a number of small exchanges with a large fluctuation range. Dong Chia started the validation process and allowed mining on March 19, a process known as the mainnet. At that time, Chinese miners flocked to e-commerce sites to buy hard drives and sold these items out of stock, mainly in the super-hard drive segment of 10 TB or more. And after about two months, Chia was officially listed on May 4 last with the virtual currency code XCH, starting price 1,700 USD. But immediately this currency must witness selling momentum causing it to drop in value to only $ 700 before recovering around $ 900 mark. Over time, with the Bitcoin fever, new virtual currencies are constantly appearing and being pumped, making it worth fluctuating up and down. The volatility of the virtual currency market is part of the reason that many countries are afraid of Bitcoin in general and virtual currencies in particular. Phuong Nguyen (According to CoinDesk)

The Turkish central bank forbids payments with Bitcoin and other cryptocurrencies. Trading in digital currencies and paying with them are associated with “significant risks” and may lead to “irreparable” damage, the institute said. Cryptocurrencies are not subject to any regulation or supervision by a central bank and the rates are subject to high fluctuations. In addition, the central bank is concerned that cyber currencies will prevent the Turkish lira continues to come under pressure . It has lost a lot of its value in recent years, and inflation is high in the country. Crypto fans also see digital assets such as Bitcoin or Ethereum as a hedge against currency weakness and inflation.

Accepted as a means of payment by more and more companies

The new regulation, which is to apply from April 30th, prohibits payment processors from making transfers in cryptocurrencies. Direct and indirect payments are affected, wrote the central bank in its official gazette. In contrast, the ban does not seem to apply to the possession of digital currencies. Recently, more and more businesses in Turkey had accepted cryptocurrencies as a means of payment, just a few days ago, for example, the car dealer Royal Motors, which sells Rolls-Royce and Lotus vehicles in the country. Worldwide, Apple, Amazon and the online travel company Expedia have been ready for a while. Also the electric car manufacturer Tesla accepts cryptocurrencies when paying . A Bitcoin was around three percent cheaper to $ 61,490. The course had chased from one record to the next in the past few months – many experts are warning of a bubble. Shares in companies that deal with cryptocurrencies also came under pressure.

Economic Observer Network reporter Ren Xiaoning, intern Lu Shuo At the highest point of $65,000 on the Bitcoin site, a platform for trading Bitcoin in the United States was listed on the Nasdaq. On April 14, US Eastern time, Coinbase went public. It is the first bitcoin exchange with a formal license in the United States and the first listed cryptocurrency company. For the currency circle, last night was an important milestone moment. Terence, the business leader of Binance Greater China, told the Economic Observer that the listing of Coinbase is a recognition from the mainstream world for the industry. It also provides experience for companies in the crypto asset industry or the blockchain industry to prove transactions. The stock can also be listed. Big ups and downs on the first day of listing After the opening on April 14th, Eastern time, the market value of Coinbase rose sharply and broke through 110 billion U.S. dollars, and then quickly shrank. A few hours later, it plunged by nearly 30%, and its market value at the close was 61 billion U.S. dollars. 2.4 times the market value, net worth has surpassed traditional financial institutions. Founded in 2012, Coinbase is the largest Bitcoin and other digital currency trading platform in the United States. Last year, Coinbase’s revenue was US$1.277 billion, an increase of 140% over 2019; net profit in 2020 was US$322.3 million, an increase of 960% over 2019. Coinbase is a compliant exchange in the United States. It is the first licensed bitcoin exchange in the United States. It has digital currency trading licenses (MSB) in many states in the United States, as well as digital currency licenses from the central banks of the United Kingdom and Ireland. Coinbase provides trading services for Bitcoin and other digital currencies. The current digital currency environment is getting better. Since the beginning of this year, Bitcoin has experienced a round of skyrocketing market, from 30,000 US dollars at the beginning of the year to 65,000 US dollars today.TeslaThe founder Musk is an optimist for digital currency, and Tesla can already use Bitcoin to pay.Morgan Stanley,Goldman Sachs,Black stoneAs companies invest in Bitcoin as a store of value, California real estate company Caruso also announced that it will accept Bitcoin as a rent payment. The coexistence of bubbles and opportunities Despite the gratifying gains, the outside world has always had doubts about Coinbase. The first thing to bear the brunt is whether there is a bubble in its high market value. Investment research company New Constructs stated that the overall valuation of cryptocurrency platforms is too high. As the market matures and more competitors join, Coinbase’s high profits will inevitably be eaten away. The ridiculous valuation of $100 billion will only make They cannot realize the expected profit. As a platform party, Coinbase’s revenue mainly comes from commissions charged when providing online transactions of encrypted assets, and fees ranging from 0.5% to 0.04% are charged based on the transaction volume. This part accounts for up to 86% of revenue. In 2020, Coinbase has approximately 2.8 million monthly active users, an increase of 180% from the end of 2019. The total crypto transaction volume in 2020 is US$193.09 billion, an increase of 141.7% from 2019. Compared with similar digital currency exchanges, Coinbase’s commission fees are relatively high. How to continue to grow in the environment of low-price competition from opponents is a problem that Coinbase needs to face. In addition, cryptocurrencies still have gray areas under the existing regulatory system. Even though Coinbase has made great efforts in legal compliance, the red lines still happen from time to time. On March 19, Coinbase and the US Commodity Futures Trading Commission (CFTC) reached a settlement with allegations of improper reporting of trading volume and “self-trading”, and were fined 6.5 million yuan. This incident also delayed Coinbase’s listing plan to April. Previously, Coinbase had repeatedly confronted the CFTC on suspicion of cross-trade transactions, illegal sales, and security deposits. Terence told reporters that at present, the legal provisions of US cryptocurrency exchanges in terms of operating mode and product form are still in the groping stage. In the future, the regulatory provisions and related policies of the SEC and CFTC may be adjusted and become more stringent at any time. Coinbase listed 27 key points on volatility risk in the prospectus, including changes in investor confidence, negative publicity on social media, regulatory issues, and technical issues. However, in any case, the listing of Coinbase is a big step for the cryptocurrency industry. Terence said that the listing of Coinbase will arouse more attention to cryptocurrencies in the traditional financial sector, and will also help increase user trust in exchanges, provide endorsements to the crypto industry, and benefit the overall market.

What Apple is in the mobile phone industry and Amazon in online trading, that should be Coinbase in the cryptocurrency scene. At least that’s what Thomas Rappold, financial expert for the tech industry and author of numerous books on technology stocks, thinks. On Coinbase, 56 million investors buy and sell around 50 different crypto currencies – from Bitcoin to “SushiSwap”. An estimated eleven percent of the market flows through the platform. Coinbase is one of the biggest beneficiaries of the current Bitcoin boom. No wonder the crypto heavyweight’s IPO caused a stir on Wall Street today. Investors fought for stocks. The initial price was $ 381 – $ 131 above the reference price of $ 250. This corresponds to an increase of a good 52 percent.

Worth more than the New York Stock Exchange

Thus, the crypto trading platform is now worth almost $ 100 billion more on the stock exchange than any other exchange operator. For comparison: The operator of the New York Stock Exchange, the Intercontinental Exchange, currently only has a market capitalization of just under $ 66 billion. Some analysts believe that price soaring will continue on the first day of trading. They think a valuation of $ 100 billion to $ 170 billion is possible.

From the niche to the Wall Street mainstream

The first IPO of a company whose business model is based purely on trading cryptocurrencies is a satisfaction for many fans of cyber currencies. You will see the listing as a Milestone for Bitcoin & Co . on the way to the Wall Street mainstream. “As of today at the latest, Wall Street can no longer ignore cryptocurrencies,” said expert Timo Emden from the analysis company Emden Research. Coinbase is currently highly profitable. In the first quarter, the profit should have been between 730 and 800 million dollars, the platform operator recently announced. Sales even climbed to $ 1.8 billion. The number of users more than quadrupled in the first three months of this year – from 13 to 56 million.

Depending on the Bitcoin rate

The trading platform mainly earns its money through fees. The higher the price of Bitcoin & Co. rises, the higher the fee. Accordingly, business is currently booming. The price of Bitcoin has increased almost tenfold within a year – from $ 6,500 to almost $ 65,000. A new record of $ 64,899 was hit on Wednesday. But the profitability of Coinbase stands and falls with the rates and trading volume of cryptocurrencies. If a crash occurs, for example in 2018, when the Bitcoin rate fell by over 70 percent and other cyber currencies such as Ethereum even more sharply, Coinbase’s business also collapses. “We can also make money,” admits Coinbase co-founder and CEO Brian Armstrong. The business model is therefore extremely prone to fluctuations.

Coinbase CEO Brian Armstrong

Fee pressure is likely to rise

Should the competition increase further and the crypto rush evaporate, the fees of the trading platforms could also come under pressure – similar to the last one with online brokers or the operators of share trading apps. Especially smaller of the more than 200 crypto exchanges are trying to attract customers with lower fees. The PayPal group, which has now also started trading Bitcoin, could further fuel competition. Experts see regulation as a further risk. Jesse Powell, head of Coinbase competitor Kraken, recently warned on CNBC that governments would crack down on digital currencies – whereby criminals like to use cryptocurrencies. Coinbase is trying everything to avoid ending up in this dirty corner. The company sent its managers to the FBI and the Secret Service to explain to them that Coinbase was not an Eldorado for money launderers and drug dealers.

Safe from total loss?

The best Regulation in this country offers protection against a total loss of the investment , says Philipp Sandner, Head of the Blockchain Center at the Frankfurt School of Finance. In addition to three other trading platforms, Coinbase has applied for a license from BaFin. The cryptocurrency industry is also not immune to the risk of hacker attacks. In 2013, hackers stole millions on various crypto exchanges. Coinbase claims it has never been hacked. The entrepreneur secures his customers’ money by mainly keeping the key codes separate from the internet.

After the successful listing, Coinbase’s stock price has performed well. As of 20 o’clock on the 15th, Beijing time, Coinbase’s pre-market share price rose more than 8% to about $354. The day before, Coinbase’s stock price closed up more than 30% to US$328.28, with a market value of more than US$61 billion.

“Coinbase’s successful listing has fulfilled market expectations. The current stock price increase has brought additional benefits to the market. Investors will not worry about the issue of the redemption of cryptocurrencies. In addition, many of Coinbase’s businesses have also received mainstream financial Institutional recognition has promoted cryptocurrency to become a mainstream investment product.” Ma Tianyuan, a partner of Encrypted Asset Angel Fund Wuwei Investment, told a reporter from Shanghai Securities News.

Institutions have also shown their optimism about the prospects of the cryptocurrency market with actual actions. Catherine Wood, CEO of Ark Investment Management, known as the “female Buffett,” made the first shot, and all three of its funds opened new positions to buy Coinbase on Wednesday. Among them, flagship fund ARKK bought 512,500 shares, financial technology innovation theme fund ARKF bought 89,600 shares, and Internet innovation theme fund ARKW bought 147,000 shares. Based on the closing price of Coinbase on Wednesday, Katherine Wood holds a total of approximately $246 million in market capitalization of Coinbase.

The US investment bank BTIG included the newly listed Coinbase in the form on Thursday, giving it a “buy” rating with a target price of $500. Previously, MoffettNathanson of the New York Research Institute gave Coinbase a one-year target price of $600.

Although the market is bullish, some institutions have reminded that under the premise that it is difficult to predict what will happen in the future, short-term cryptocurrency market volatility will be more intense than before.

“In the bull market, the price of various assets will have higher premiums, and some assets will rise irrationally. Investors should carefully choose investment targets and pay attention to risks.” Binance China Blockchain Research Institute researcher Zhang Ming told the Shanghai Securities News reporter.

According to real-time data from the blockchain data and intelligence provider Glassnode, as of 20 o’clock on the 15th, Beijing time, the 8-hour long funding rate of the Bitcoin perpetual contract reached 0.1284%, and the difference between the sub-delivery contract and the spot price gradually increased to 8,000 US dollars. . In other words, the current long bitcoin side needs to pay 0.1289% of the principal per hour to the short side, which means that long bitcoin needs to pay a higher price, but investors continue to go long.

Ma Tianyuan believes that the listing of Coinbase means that the valuation ceiling of the cryptocurrency market has been opened. At present, the level of leverage in the market has increased. It is recommended that non-professional investors reduce the use of leverage and other derivative instruments and enter the market cautiously.

Regulatory policies are still one of the uncertainties in the price trend of cryptocurrencies. In the future, countries may implement strict legislation on cryptocurrencies. Fed Chairman Powell said on Wednesday that cryptocurrency is a speculative tool. Previously, the European Union planned to specifically target cryptocurrency legislation.

“Encrypted assets have been moving forward in controversy. We have seen the attitudes of many regulatory agencies improve. It is expected that the supervision of encrypted assets in various countries will gradually improve in the future, which is conducive to the legal and compliant development of cryptocurrencies.” Zhang Ming told reporters.

On Thursday, the world will usher in the world’s first reverse Bitcoin exchange-traded fund (ETF), which will be listed on the Toronto Stock Exchange (TSX), allowing investors to short Bitcoin futures.

In this regard, Zhang Ming believes that there is never a lack of short-selling methods for encrypted assets, and a wealth of financial tools can provide investors with more choices and promote healthier price discovery.