Crypto finds buyers 🔗 Crypto finds a bank ⚙️
Nameet Potnis
Founder @Muzify | Connecting Music Superfans with Their Tribe and Empowering Artists | Payments & E-commerce Expert
Crypto products are experiencing a major surge in investments.
For the fourth consecutive week, crypto funds have been riding the wave of success with a steady flow of investments.
Not surprisingly, Bitcoin stole the show, devouring a whopping 99% of the inflows. With its price hovering around $30,250 ($29,986 at the time of writing), Bitcoin continues to flex its muscles, with an impressive 82% year-to-date increase and a modest 0.2% surge in the last seven days.
Not all sunshine and rainbows
These products, which allow investors to bet against Bitcoin's performance, seem to be losing their appeal as Bitcoin's dominance continues to rise.
Across North America, the crypto revolution is in full swing, with $109 million flowing into US products and an additional $28 million finding its way to Canada. It's clear that North Americans are embracing the digital future, capitalising on the potential of cryptocurrencies.
Galaxy Research report
Venture capital funding for crypto and blockchain initiatives has declined for the fifth consecutive quarter, according to a report by Galaxy Research. Despite Bitcoin and Ethereum experiencing a rise, venture capital firms are becoming less interested in the crypto space.
"Capital invested has not yet found a clear bottom," the report said. "Rising rates continue to reduce allocator appetites to bet on long-tail risk assets like venture funds."
Cathie Wood's bullish outlook
Cathie Wood, the visionary CEO of ARK Investment Management, is doubling down on her optimism for Coinbase following Ripple's recent legal victory against the Securities and Exchange Commission (SEC) on July 13.
Although the Ripple ruling wasn't an outright win for the company, Wood sees it as a significant positive for the entire crypto exchange industry. Joining the chorus of voices in the crypto community, she believes that the ruling, which clarified that XRP tokens are not securities sold to retail investors, could have far-reaching implications for Coinbase and Binance in their ongoing legal battles with the SEC.
Prices flat?
The weekend may have been a bit uneventful for crypto prices, but the excitement is building as investors eagerly anticipate second-quarter earnings reports from major stocks like Goldman Sachs, Netflix, and Tesla.
Bitcoin has been chilling around $30,300 since a small 4% dip on July 14, while Ether has kept it steady at $1,930. Though the correlation between crypto and stock indexes has loosened, positive earnings outcomes could still boost crypto valuations.
As Wall Street braces for a potentially challenging earnings season, all eyes focus on Coinbase. The crypto community eagerly awaits the release of their Q2 earnings after a net loss of $79 million in Q1.
TTD Blockquote 🔊
Gary Gensler, SEC Chair
"I think artificial intelligence is the transformative technology of our times"
Beat it » Crypto folks
Around 54 Enforcement actions against crypto firms between 2018 -2023.
And now SEC's Gary Gensler on AI: "We at the SEC also could benefit from staff making greater use of AI in their market surveillance, disclosure review, exams, enforcement, and economic analysis."
During a recent appearance at the National Press Club, Gensler couldn't contain his excitement over the recent Ripple case ruling, although it's not a total victory for the SEC just yet. He expressed pleasure with the decision's recognition of the importance of protecting institutional investors, while still assessing its impact on retail investors.
Despite the crypto frenzy surrounding the Ripple case, Gensler redirected the conversation to his true passion—artificial intelligence. He reminisced about his involvement with MIT and the remarkable minds he encountered while teaching a course on blockchain technology. He believes that AI will revolutionize the world as we know it, surpassing the hype and attention given to digital currencies.
"In 2018, and in 2023, I found it fascinating this focus on digital currencies and crypto by the press, with all respect, and even the retail investing public in contrast to artificial intelligence," he added. "I for one I've already stated here clearly I think artificial intelligence is the transformative technology of our times."
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TTD Bank 🏦
Customers Bank emerges as an alternative for crypto firms in the US following the collapse of crypto-friendly banks.
In the aftermath of the banking collapse earlier this year, the US crypto industry was left in a state of uncertainty. However, a new player, Customers Bancorp Inc., has stepped in to fill the void and become a go-to option for crypto businesses.
Customers Bank, based in Pennsylvania, has formed partnerships with numerous digital asset firms, including major exchanges, market makers, and stablecoin issuers. Through its real-time payments platform called Customers Bank Instant Token (CBIT), the bank facilitates 24/7 USD transactions for crypto companies.
As other crypto-friendly banks like Silvergate and Silicon Valley faced challenges, crypto businesses turned to Customers Bank to ensure seamless USD transactions. Prominent names in the industry, such as Circle, Coinbase, and BitGo, have already partnered with the bank.
However, as regulators crack down on the crypto industry and impose stricter measures, banks are cautious about their association with cryptocurrencies. Customers Bank, too, has distanced itself by removing a webpage highlighting its services for cryptocurrency institutions. The bank has also limited CBIT deposits to 15% of its total deposits, likely to mitigate regulatory scrutiny.
While Customers Bank's growing role in the crypto space may attract regulatory attention, it has become a reliable banking option for crypto firms seeking secure and efficient USD transactions. With the industry evolving rapidly, the relationship between crypto businesses and banks like Customers Bank will continue to be closely watched.
TTD MEMES 👀
Hold on to your memes!
Crypto memes could lead to 2 years in jail.
Step 1: Create a hilarious crypto meme.
Step 2: Add disclaimers.
Step 3: Avoid jail time.
The UK's Financial Conduct Authority (FCA) has made an unexpected move by targeting crypto memes as potential financial promotions. In a proposal that could carry serious consequences, non-compliant memes might lead to up to two years in jail, courtesy of the FCA.
Crypto firms and influencers are now urged to start slapping disclaimers on their hilarious crypto-themed memes to ensure compliance with advertising laws. The FCA's newly released guidance on social media financial promotions zooms in on these eye-catching memes and those "finfluencers" who have mastered the art of blending finance and entertainment.
Apparently, many memes from crypto firms have been making the rounds online, oblivious to the fact that they fall under the FCA's promotional rules. Promotional memes are all the rage in the crypto sector, catching the attention of regulators. According to the FCA, any form of communication, memes included, could be considered a financial promotion.
Now, before you start panicking, it's important to note that the FCA views crypto as a high-risk investment. It can still be advertised to the masses, but there are some requirements involved. Risk warnings must be included, and those catchy investment incentives? Well, they're a no-no.
TTD Twitter 🌈
Crypto Twitter is on a mission to uncover and preserve the deleted tweets of Coinbase CEO Brian Armstrong after he apparently wiped his entire message history from the site. Even The Wayback Machine, the trusted internet archive, seems to have erased all evidence of Armstrong's tweets.
The initiator of the search, pro-Bitcoin tweeter @Pledditor, aims to "find links via alternative archival services to all his old tweets." The focus is on retrieving "tweets with verifiable archive links," particularly from the period between 2015 and 2018, when Armstrong apparently shared his most controversial takes.
While web users can request the removal of site or account archives through The Internet Archive, the review process may not result in the deletion of records. It's evident why Armstrong might want some tweets erased, as the recovered messages range from mundane updates about the company to more contentious opinions on the future of Coinbase and crypto as a whole.
Highlights of the recovered tweets include Armstrong's complaints about Coinbase's removal from bitcoin.org, his suggestion for a for-profit Bitcoin fork, his assertion that "altcoins are a distraction," and his excitement over a 4% ETH price surge after Coinbase listed it.
Armstrong is not the only crypto CEO who has found himself backpedaling when it comes to social media posts. Previously, digital asset information platform The Tie compiled a list of tweets deleted by former FTX chief Sam Bankman-Fried, while Justin Sun's exchange Poloniex faced scrutiny for publishing and subsequently deleting tweets related to an 'SEC-focused token' giveaway.
TTD Surfer 🏄