Tuesday, March 5, 2019

Coffee for crypto? ☕️

March 5, 2019

Equity for Coffee? Bakkt Deal Nets Starbucks "Significant Equity" in the Firm

According to a new report from The Block, Starbucks will begin accepting Bitcoin in all of its stores to make the age-old idea of buying a cup of coffee with crypto a reality - at scale.

The implementation will use Bakkt's payment software to instantly convert the digital asset to fiat so that Starbucks can avoid crypto on its books but still help onboard adoption.

The upside for Bakkt? Exposure in 29,324 Starbucks stores around the world that cater to more than 15 million Starbucks Rewards members.

But at what price?

While the actual details of the plan are under wraps, sources "suggest it is disproportionately high given they did not actually make a cash investment."

Back in August, Starbucks actually denied the idea of accepting Bitcoin using Bakkt and wrote that "customers will not be able to pay for Frappuccinos with Bitcoin."

But now, with a sizable Bakkt equity carrot dangling in front, it seems Starbucks couldn't resist the temptation.

What about mobile payments?

While in-store acceptance is a cool feature, we don't know whether or not the deal will also cover mobile payments.

If it does, it will be a game changer since Starbucks' mobile payment system is actually the most popular in the United States, beating Apple and Google, with more than 23.4 million users.

Previously, Starbucks vice president of partnerships and payments Maria Smith hinted at the addition of digital assets saying "Starbucks is committed to innovation for expanding payment options for our customers."

NEWS

#DeleteCoinbase Finally Got to Armstrong as Ex-Hacking Team Members Plan to Exit

Controversy erupted last week when online discussion revealed that Coinbase's acquisition of blockchain analytics firm Neutrino would actually include past members of Hacking Team, a spyware company that had been exposed for selling products to authoritarian governments.

Now, after a strong pushback campaign from users marked by #DeleteCoinbase on Twitter, CEO Brian Armstrong is doubling back and now plans to phase the ex-Hacking Team employees out.

Armstrong stated:

"Together with the Neutrino team [...] [we] have come to an agreement: those who previously worked at Hacking Team (despite the fact that they have no current affiliation with Hacking Team), will transition out of Coinbase."

Still needs the technology

While Armstrong called the Neutrino acquisition a "gap in [Coinbase's'] due diligence process," he reiterated that Coinbase needed the startup's technology for its impressive blockchain analytics tools.

Prior to Armstrong's statement, Coinbase director of institutional sales Christine Sandler defended the acquisition because the exchange's previous blockchain analytics provider was selling user data for financial gain.

One provider, Elliptic, has since published an article to refute Sandler's claims saying her comments "fundamentally misunderstand the data."

LAUNCH

You Can Now Get Interest in a Crypto Savings Account

Announced today, crypto lending startup BlockFi is breaking ground with its newest offering: a crypto deposit account that provides compound interest.

Called BlockFi Interest Account (BIA), the venture will offer customers an annual interest rate of 6% that will be paid monthly via crypto.

When all said is done, that amounts to 6.2% after taking into account compounding.

A twist on traditional savings

The new offering is an impressive twist on traditional savings accounts.

"It helps crypto investors grow their wealth with one of the most powerful tools in finance – compound interest," director of marketing Brad Michelson told CoinDesk.

And it sure does. With a 6.2% yield, it towers over traditional savings accounts that offer an average of just 0.01%. Although there is more risk involved, even if the prices of Bitcoin and Ether fall, BlockFi can still afford to pay its customers.

For now, account holdings are being stored by Gemini Trust Company and will start with just Ethereum and Bitcoin deposits.

BITS

But wait, there's more...

🚨 Cryptopia has reopened its website with resumed user balances before the hack after a slight delay.
🚀 Kraken's futures trading nears $1 billion in the first month of operations.
⛏ Bitcoin mining revenue begins a slow recovery after 18-month lows.

MEME