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Coinbase Says Traders Bought the Dip, Reveals $1,300,000,000 Bitcoin (BTC), Crypto and Cash Inflows in Just 48 Hours

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The leading US crypto exchange Coinbase says it witnessed a tidal wave of deposits in the 48 hours following Bitcoin’s (BTC) crash on March 12th.

The exchange says $1.3 billion in cash and crypto deposits flowed into the exchange in that time period – which is five times the average. In addition, Coinbase recorded a 2x increase in new-user signups, a 3x increase in trading users, and a 6x increase in total trading volume.

“But beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite.

Our customers typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.”

Meanwhile, peer-to-peer Bitcoin exchange Paxful saw the number of new signups double in March. London-based crypto exchange Luno revealed a 50% surge in new users in the last 30 days. Bitfinex and OKex also reported notable growth in new users this month, reports Decrypt.

In addition, the crypto exchange Kraken reported an 83% surge in signups and a 300% uptick in the number of users going through the know your customer (KYC) process.

Kraken CEO Jesse Powell says he’s increasing his staff by nearly 10% to meet the influx of new users.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.



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Crypto-Related Crime Fell To $10 Billion In 2020

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Cryptocurrency-related crime fell in 2020, according to a blog post from Chainalysis.

In 2019, criminal activity constituted 2.1 percent of all crypto transaction volume, which came out to $21.4 billion in transfers.

But that number dropped to 0.34 percent, or $10 billion, by 2020, the report says.

One of the reasons for the shift was that overall economic activity almost tripled between those two years, the blog says. The crimes that ended up driving the change in 2020 were scams and the darknet market, the blog’s stats report. More stats show that scams netted around $2.6 billion, representing 54 percent of the total fraudulent activity that year.

LVL, an upstart bitcoin exchange, has rolled out its own Mastercard debit card which it’s taking pre-orders for, a report from CoinDesk says.

The card will be linked to bitcoin and fiat accounts, and will be one of Mastercard’s premium accounts, able to be used anywhere globally, CEO Chris Slaughter said, according to the report.

The card represents some of LVL’s goals to bring traditional banking services together with crypto for regular consumers. The firm switched from a trading fee system to a subscription service in November 2020, and Slaughter said he thinks the debit card will be a big earner for the company.

Near 30 people in Kyodo, Japan have been charged for reportedly exchanging NEM cryptocurrency for other digital currencies, in spite of knowing the assets had been stolen, a report from The Mainichi says.

The report says there were 58 billion yen in digital money stolen from Coincheck Inc. in January of 2018, and after that, an underground operation emerged, in which the yen were exchanged for other digital currencies on a dark website.

The suspects, according to the report, had been trading at said exchange.

Singapore Exchange (SGX) has entered into a joint venture with Temasek, which is set to be the first exchange-led digital asset venture in Asia focused on capital market workflows through smart contracts, ledger and tokenization tech, according to a press release.

The partnership will utilize SGX’s multi-asset experience and strengths in working with operating market infrastructure, along with Temasek’s work in blockchain and ecosystem connectivity.

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NEW PYMNTS DATA: RETAIL BANKING SERVICES’ PARADIGM SHIFT STUDY – JANUARY 2021 

About: The January 2021, Retail Banking Services’ Paradigm Shift Report, PYMNTS examines how consumers choose to engage with their FIs when accessing information about various products and services, especially since the pandemic’s onset.



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Crypto Exchange Giant Coinbase to Sell Shares Privately Ahead of Public Offering – Bitcoin News

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According to a recent report, the San Francisco-based cryptocurrency exchange Coinbase is purportedly planning to sell stock on Nasdaq’s private market ahead of the initial public offering (IPO). Coinbase reportedly notified shareholders that they will receive information pertaining to the private sale this week.

Reports Indicate That Coinbase May Sell Shares via the Nasdaq Private Market Ahead of the IPO

Coinbase is the biggest digital currency exchange in the United States and one of the largest trading platforms worldwide. At the time of publication, between BTC and ETH deposits, Coinbase holds over $40 billion in digital assets under management (AUM) according to Bituniverse exchange balance ranks. As far as other digital assets under management the San Francisco exchange recently noted it holds $90 billion AUM in cryptocurrencies.

In mid-December, Coinbase announced the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission. On Friday, the financial columnist from The Block, Frank Chaparro, reported that Coinbase will sell shares privately ahead of the IPO.

“On Monday, January 25 at noon PT you will receive an email from the Nasdaq Private Market with details, including how you can access the market, what shares are eligible for trading, and how the market will function,” a message allegedly sent to Coinbase shareholders detailed.

Coinbase Pre-IPO Futures Sees Significant Demand, Estimates Show Crypto Company Could Reach a $20 to $70 Billion Valuation

Rumor has it that Coinbase will leverage the financial institution Goldman Sachs to lead the IPO. Moreover, pre-IPO futures (CBSE) are also trading hands on the crypto exchange platform FTX. At the time of publication, CBSE/USD markets on FTX show the pre-IPO futures swapping for $272 per unit. CBSE is one of the largest tokenized stock markets on FTX outperforming the vaccine company’s token stocks on FTX called Moderna (MRNA).

There have been some different predictions in regards to estimating Coinbase’s overall value after the IPO. An analysis from messari.io analyst Mira Christanto details Coinbase “could see the company valued at $28 billion.” Research compiled by The Block estimates the San Francisco firm could reach a $70 billion valuation.

What do you think about Coinbase selling shares privately via Nasdaq’s private market? Let us know what you think about this subject in the comments section below.

Tags in this story
Bitcoin, Bitcoin (BTC), CBSE/USD, Coinbase, Coinbase Futures, Coinbase IPO, crypto exchange, Finance, Frank Chaparro, ftx, FTX Pre-IPO Futures, initial public offering, IPO, Mira Christanto, Nasdaq Private Market, shares, Stock, trading platform

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



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Why Polkadot Is The Hottest Crypto In China

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In brief

  • Polkadot is huge in China among devs and retail investors.
  • The community support, especially from the Web3 Foundation, is particularly strong.
  • To some extent, it’s following a similar trajectory to EOS.

It’s not a secret that in China, Polkadot resembles a newer, better EOS, the public blockchain that swept the Chinese crypto ecosystem in 2018. 

Both projects have inspiring foreign—in particular Caucasian leaders—who frequent China’s blockchain conferences and cocktail parties. (I don’t want to sound racist but the fact that they are white plays a huge role. Some Chinese ponzi scams have actually hired white actors during their roadshows to fool retail buyers.)

EOS and Polkadot are backed by Chinese capitalists, who spread the Ethereum-killer narrative whenever they can on crypto Wechat. These capitalists, especially exchanges such as Binance, Huobi, and MXC, come with a war chest of funds to lure entrepreneurs to the Polkadot ecosystem. Both projects have attracted strong interest from Chinese retailers but somehow are far lesser-known abroad. 

Despite the two projects’ perceived similarities, Polkadot has developed its own narrative and community. This week’s da bing examines the rise of Polkadot and how that reflects the state of crypto in China.

It takes more than a day to build Rome

Obviously, Polkadot, whose selling point as a blockchain of blockchains, is big everywhere right now, having recently flipped XRP to become the fourth-largest cryptocurrency by market cap.

No project can win China without spending time and money on blockchain conferences and roadshows. And Polkadot perfected that game. Not only is its founder, Gavin Wood, a semi-resident in the Shanghai area, but he has also established a community of vocal influencers, investors, developers, marketers, and speculators. They believe in Polkadot’s technological vision, its monetary vision, or both.

Perhaps more importantly, Polkadot has gotten many developers to abandon Ethereum, which Wood co-founded, and build on its blockchain instead. A report from Outlier Ventures shows that Polkadot saw a 44% increase in monthly active developers in the 12 months ended in May 2020, while Bitcoin and Ethereum saw mild decline. 

Chinese developers are particularly active in the Polkadot community. Based on Web3’s recent announcement, among its 200 grant recipients, close to 20% of recipients come from China. 

For example, Marvin Tong, founder, and CEO of Phala Network, a Substrate-based confidential smart contract blockchain, told me that in his original quest to bring privacy to the blockchain world, he examined EOS, Ethereum Layer2, Cosmos, and Polkadot.

“We chose Polkadot instead because we believe that its technology is the most advanced, and I think we made the right decision. More importantly, Substrate is an important tool. It allows us to reduce repetitive blockchain development work,” Tong told me. (Substrate is a framework that allows devs to build blockchains.)

It’s too early to say whether Polkadot is more advanced than other blockchains. Data shows that at its peak, Polkadot processed 12,619 transactions in a day, which, compared to Ethereum’s average of 1.1 million per day, indicates that the technology race is not over yet. (Indeed, even in January 2017, when Ether’s price was roughly $10, the network still had an average of 50,000 transactions per day—more than four times higher than Polkadot’s best day thus far.)

But in China at least, there’s something else beyond technology that differentiates Polkadot. “The Web3 Foundation, Parity and Gavin are very powerful together,” Tong told me. “No other foundations can be as generous and strategic when selecting grant recipients. They are also very supportive in marketing our projects.” 

This sentiment of being taken care of hits a home run. 

After all, entrepreneurs require not only initial capital, but also attention and cultivation. Ethereum, and many other blockchains, have taken a neutral but distanced approach to the Chinese market, partly due to the language barrier, and partly due to a lack of understanding. Polkadot manages to penetrate the Chinese market like a well-oiled marketing machine; it also shows that it cares. 

Cynics could argue that this “care” stems from a desire to shill its token. Perhaps. But given that the crypto world is built on “consensus,” anything that can get people to believe in one narrative is a win. 

Missed DeFi, gotta catch the $DOT 

Polkadot also fills a narrative vacancy. China was late to the DeFi yield farming festival last summer. The country only woke up in September, shocked by the unstoppable force of the degens’ 5-digit APY farming, wondering “what’s the next hot thing?” 

Chinese retailers move into Polkadot satisfies their FOMO while providing some comfort.

First, it has a legit founder, who is portrayed as the real developer behind Ethereum. Wood’s narrative of Ethereum-as-a-toy versus Polkdadot-as-the-real-thing resonates with many in China. After all, who there would not choose a senior engineer who has decades of programming experience over a 26-year-old “kid?” 

Second, Polkadot adopted an auction game that’s similar to EOS’s, in which both projects ask investors to stake tokens to gain influence. For EOS, users stake tokens to become a supernode; for Polkadot, users stake $DOT to win a parachain. 

The Chinese crypto circle already went through a wild EOS supernode race in 2018, so running another one in 2021 sounds, well, just fine. The winning strategy of such a game is to collect enough capital so your node or parachain gets the final seat. How to collect capital? Good old marketing and community shilling. These are familiar tactics that Chinese capitalists can play with their eyes closed. 

And lastly, DeFi happened. As Ethereum embarks on a journey to find its true product-market-fit, Polkadot benefits from this narrative win as well, because it can simply claim that DeFi works better in its ecosystem rather than on the clogged Ethereum network. In fact, Binance established a $10 million fund to attract developers to solely build DeFi projects around the Polkadot ecosystem. Two birds, one stone. 

Chinese home-grown projects such as Acala also managed to raise capital from known investors even though it’s just building Polkadot’s version of lending and DEX products. If Ethereum DeFi continues to innovate, Polkadot can sustain its DeFi ecosystem for some time, too. 

Game is still on

The rise of Polkadot in China should come as no surprise. It showcases the perfect playbook of how foreign projects can succeed in China: iconic founder, relentless marketing, and a receptive audience awaiting the next crypto narrative. 

But let’s not forget one thing: it’s all about the community because the community builds consensus. Polkadot has built a reputable consensus in China as the most credible Ethereum wanna-be. That narrative has been strengthened by international players’ increasing interest from the likes of investors such as Polychain, which announced a Polkadot focused fund in October, 2019.

However, can it escape the same rise and fall fate as the other Ethereum-wanna-be, EOS? It’s still early days and some Polkadot projects, such as Mantra, a MakerDAO copycat that claims to be the first DeFi project on Polkadot, are getting very bad press in China.

But the game is far from over. As long as the community is still expanding, and entrepreneurs are building on Polkadot, the platform will continue to be the Chinese crypto circle’s darling child.



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