Amazon Eyes Crypto Reserve, Ripple Receives Approval for Stablecoin, and Bitcoin Breaks $100K Again
Welcome to our Weekly Market Update. Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we learn more about token launches.
Takeaways
- Amazon shareholders urge the company to allocate 5% of its reserves to bitcoin: The proposal highlights bitcoin’s outperformance against traditional assets and echoes similar moves by companies like MicroStrategy and Tesla.
- Crypto liquidations hit $1.5 billion Monday as bitcoin dipped below $95K: But the world’s largest cryptocurrency rallied past $101,000 on Wednesday after positive inflation data set the stage for a rate cut next week.
- Ripple's RLUSD stablecoin secures approval from New York’s financial regulator: The launch will now proceed with exchange and market-maker partnerships already in place.
- Hong Kong accelerates crypto licensing as global competition heats up: Plans include streamlined approvals for crypto trading platforms and new regulation for stablecoins.
- The Cardano Foundation's X account was hacked, leading to fake announcements about a token and an SEC lawsuit: The breach triggered significant trading activity and community confusion before being addressed by the Foundation.
Amazon Shareholders Propose Allocating 5% of Reserves to Bitcoin
Led by the National Center for Public Policy Research (NCPPR), Amazon shareholders are advocating to allocate at least 5% of the company’s reserves to bitcoin. In a proposal submitted to the e-commerce giant, they argue that bitcoin’s inflation-beating qualities and long-term appreciation outperform traditional assets like bonds, which currently dominate Amazon’s $88 billion treasury holdings.
The proposal draws comparisons to companies like MicroStrategy and Tesla that have successfully integrated bitcoin into their treasuries, emphasizing Amazon's responsibility to explore alternative assets. It criticizes Amazon’s current asset mix of cash, bonds, and marketable securities as insufficient in protecting shareholder interests amid inflationary pressures.
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Microsoft shareholders submitted a similar bitcoin diversification proposal that was rejected on Tuesday. If adopted by Amazon, the move would mark a significant shift in corporate treasury strategies among tech giants, potentially setting a precedent for broader adoption of crypto in mainstream companies.
Ripple’s RLUSD Stablecoin Receives Approval from New York Regulator
Ripple’s much-discussed RLUSD stablecoin received final approval from the New York State Department of Financial Services (NYDFS). Ripple CEO Brad Garlinghouse confirmed the news on X, stating, "Exchange and partner listings will be live soon."
RLUSD is designed to operate on both the Ledger and Ethereum networks. Ripple has also secured partnerships for its stablecoin with a variety of crypto exchanges. In addition, market makers such as B2C2 and Keyrock will provide liquidity for the token.
Ripple’s stablecoin will be entering a competitive market, with Tether’s USDT and Circle’s USDC still firmly dominating with market caps of $138 billion and $40 billion, respectively. Although with recent excitement surrounding Ripple’s XRP’s token causing a price rally and increased brand awareness, RLUSD looks poised to launch on a solid foundation.
IPOs, ICOs, and STOs – What’s the Difference?
The advent of blockchain technology has reshaped the methods through which capital raises are conducted by offering major corporations and early-stage startups new ways to access funding. This has significant implications for organizations looking to fund future innovations, as well as for investors interested in taking part. While traditional Initial Public Offerings (IPOs) continue to provide a satisfactory solution for many corporations seeking capital, some investors are seeking new investment opportunities. These new blockchain-enabled fundraising methods – namely Initial Coin Offerings (ICOs) and Security Token Offerings (STOs) – are broadening the scope of financing and investment for businesses, particularly startups in the crypto and blockchain sector.
Onward and Upward,
Team Gemini
Program Support Specialist at U.S. Department of State
4dGood morning, I recommend you consider addressing the point of taxes – international, national, state or province, city, and/or local - which I have not seen in any news reports, commentaries, nor editorials. In particular, the following points (1) What are – would or could be - the implications if an investor sells crypto currency at a net loss or a net gain? (2) What are the tax repercussions if a citizen buys or sells cryptocurrency at a net loss or net profit from a foreign country/market? (3) Will any e-item – a.k.a. a baseball card trade - that could be attached to cryptocurrency or blockchain - have any positive or negative or positive tax impact? (4) Have any government begun to develop/draft/have any tax laws or related regulations about cryptocurrency taxes? In short, if any cryptocurrency is the future of investing and not another “Tulip Mania” episode in the 17th century then the financial world must address the tax issue related to any expanded investing in cryptocurrency.