Binance deep dive 🕵️ / Coinbase ⚠️ resignation / CoinShares recommends 4% 😳 allocation

Reporter claims the Blockchain Association's admittance of Binance.us on Monday caused Coinbase's resignation on Tuesday

Inside.com Part of   Network August 12, 2020

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One scathing letter from Coinbase's Hermine Wong, delivered in resignation from the prestigious Blockchain Association, prompts today's in-depth notes on the world's most profitable cryptocurrency exchange. If you haven't joined us yet at Inside Premium, give us a $0 (free!) 14-day try today by clicking the unlock button within today's article. Enjoy! Aaron

Market Watch Bitcoin $11,559 7 day: unch Ethereum $383 7 day: -3.7% XRP $0.281 7 day: -7.5% Prices as of 1:15 p.m. ET

Binance says a local newspaper misreported its conduct regarding Liechtenstein's Union Bank. The local news report claimed that CEO Changpeng Zhao was attempting to overtake the bank before its imminent liquidation. The claims: CFO Wei Zhou says that Binance has not tried to acquire Union Bank nor applied to Liechtenstein's Financial Market Authority for approval. Binance's spokesperson declined to comment on whether the article was factually inaccurate. Why is Liechtenstein important? Liechtenstein is an affluent tax haven and a strategic banking center due to its proximity to Switzerland. GDP per capita in Liechtenstein exceeds $173,000. Nearby is the Swiss canton of Zug's Crypto Valley, home to the Ethereum Foundation and other multi-billion dollar cryptocurrencies like Cardano (ADA) and Datum (DAT). Banks in Liechtenstein custody cryptocurrencies, including Mason Privatbank Liechtenstein AG and Bank Frick. They also have access to SWIFT, the world's largest bank wire network. Coindesk

Coinbase has resigned from the Blockchain Association. The Blockchain Association is the crypto industry's most prestigious and influential policy group in Washington DC. Was it because of Binance... ...and why it matters. In today's Inside Crypto Premium, we dive deep into the controversial history of Binance with its wealthy U.S. customer base. We go far beyond today's report about the Blockchain Association and ask questions dating back to 2018. Nowadays, Binance claims to restrict U.S. customers to its more restrictive Binance.us operations, that has not always been the case. For more on the billions of dollars that have flowed between the U.S. and Binance's offshore operations, start your 14-day $0 (free!) trial today. READ BINANCE HISTORY

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CoinShares CSO Meltem Demirors CoinShares releases its August bitcoin research report, recommending a 4% portfolio allocation to bitcoin. The 4% carve-out comes from an otherwise typical 60/40 (60% equities, 40% bonds) portfolio; generic model portfolios do not generally constitute personalized investment advice. Key research findings: CoinShares does not identify particular catalysts, instead pointing to general financialization trends like more order management systems, insured custody solutions, prime brokerages, options, futures, and Exchange Traded Products (ETPs). CoinShares claims that the proportion of investors holding bitcoin for more than 12 months has doubled since 2012. CoinShares also rationalizes bitcoin's price drop during March's coronavirus panic. Coinshares claims that leverage levels were abnormally high, $500m of bitcoin-collateralized loans were auto-liquidated, and forecasts that "liquidation cascades" will happen again. CoinShares manages approximately $700m in assets and sponsors several ETPs listed on European exchanges. Its investments include MenaPay, Paradigm, Blockdaemon, Zabo, Arwen, Globacap, Fold, and Kaiko. Its most frequently interviewed executive is CSO Meltem Demirors. Coinshares

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Quick Hits: The natural resources trading subsidiary of Mitsubishi has launched a blockchain platform to facilitate trade confirmations and invoices between counterparties. Revolut customers held $121m worth of cryptocurrencies in 2019. The latest DeFi "meme token" is YAM by Yam Finance. Ex-NYSE broker Michael Ackerman pleads not guilty to charges of running a $33m crypto scam. Coin Metrics initiates a new quarterly publication focusing on "key stakeholders," transparency, and other difficult-to-find supply metrics for cryptocurrencies. The People's Bank of China will launch its Central Bank Digital Currency (CBDC), which it calls its Digital Currency Electronic Payment (DCEP), in the Hong Kong Bay Area comprising Guangdong, Hong Kong, and Macau. The fittest athletes in the world swear by CBD. See what they're using here.* *This is a sponsored post

Written and curated by wide-eyed bitcoin watcher since $1, Aaron Wise. Streaming headline junkie, Associated Press fanboy, eye-strained news terminal watcher, 2017 founder of Cryptocurrency Newsfeed. Temporarily based in Florida while awaiting the construction of cryptopia.  Editor Edited by Eduardo Garcia in New York. Eduardo is a graduate of the Columbia Journalism School M.A. Science program and writes regularly for the New York Times Climate Fwd: newsletter. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade.

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Avanti's New Money

DeFi Surges, Russia Monitors and 'How Much Ether?'

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August 12, 2020 By Daniel Kuhn If you were forwarded this newsletter and would like to receive it, sign up here.  TOP SHELF Forward CoinDesk’s Nathan DiCamillo breaks down how Avanti Financial intends to issue its programmable cash equivalent called Avit. This blockchain-based “commercial bank money” can be exchanged for dollars but is not pegged to it like a stablecoin. It’s also not a security token, or a digital representation of an investment that’s expected to generate returns. Issued on Blockstream’s Liquid, Avanti CEO Caitlin Long said it will likely be treated as a “cash-equivalent” by accountants and as cash by the Internal Revenue Service.  Open Source The Linux Foundation Public Health Initiative (LFPHI), launched in July, will promote the use of open-source tech by public health authorities, during COVID-19 and post-pandemic crises. Tencent, Cisco and IBM are among the core members. The initiative is backing two pandemic-related apps – “COVID Shield” and “COVID Green” – that will bolster cross-jurisdictional coordination and privacy. General Manager Dan Kohn said, “It is totally possible to create an app that’s horrible for privacy that is open source, but what open source does is it stops you from just claiming that it respects privacy, because any expert could check on that.” Gold Fork A California appeals court has ruled in favor of U.S. cryptocurrency exchange Coinbase over its decision not to support the Bitcoin Gold hard fork in 2017. Plaintiff Darrell Archer, who held 350 BTC on the exchange at the time, filed suit in 2018 alleging Coinbase had violated its contract agreement and effectively stole from clients by not supporting the fork. The court found there was no contractual agreement to support forks from third parties. Prominent industry lawyer Drew Hinkes tweeted the decision could set a precedent.  NYDIG New York Digital Investments Group (NYDIG) raised nearly $5 million for another bitcoin investment vehicle, in what could become its third securities listing this year. The asset manager raised $190 million for the NYDIG Institutional Bitcoin Fund LP in July and $140 million for a Bitcoin Yield Enhancement Fund the month before. It’s first, the Bitcoin Fund, launched in July 2019 with six investors who invested a total of $1.45 million at the time. Russia The Russian agency charged with collecting data to counter financial crimes may build its own software to track cryptocurrency transactions and link them to users. The agency is seeking to reduce anonymity in crypto transfers through an artificial intelligence-based system for blockchain analysis, according to a letter from Rosfinmonitoring to Russia's Minister of Digital Development and Communications, cited by RBK. The project could cost more than $10 million to develop. A prototype for the project, dubbed "Transparent Blockchain," has already been developed by the Lebedev Physical Institute based on the Bitcoin blockchain.  QUICK BITES VPN usage surges as Belarus remains offline, following a contentious election The dollar value of Grayscale’s flagship Bitcoin Trust (GBTC) increased 90% to $3.5 billion in the first two quarters Inflation fears might be overblown, according to The Block’s Frank Chaparro Personal tokens are booming on Uniswap (Decrypt) Bitcoiners launched a cryptocurrency relief fund for Beirut.   MARKET INTEL One DeFi trader nearly doubled his assets in a few minutes by slinging stablecoins. “In digital-asset markets, stablecoins like tether and USDC are supposed to represent $1 of value. But their prices often fluctuate on the pubescent trading platforms of decentralized finance,” CoinDesk’s First Mover team writes. In one Aug. 10 transaction on the Ethereum blockchain, a trader appears to have used a series of transactions in tether and USDC on the decentralized cryptocurrency exchanges Uniswap, Curve and dYdX to net a tidy $40,000 profit off a $45,000 initial investment. OPINION What Today's Robinhood Rally Has in Common With the Last Crypto Boom Jill Carlson, co-founder of the Open Money Initiative, teases out the similarities between the latest Robinhood Rally and the last bitcoin bull market in her latest CoinDesk column. “Crypto markets in 2016 and 2017 have in many ways foreshadowed the stock market of today. There is inspiration there, but there are also lessons,” she writes. Perhaps the biggest of all: “Markets come and go, and when the bull turns to bear some – but not all – users will go with it.” TECH POD How Much Ether Is Out There? CoinDesk’s Will Foxley investigates ether’s supply after a debate between Ethereum and Bitcoin advocates sprung up last week. To cut the debate short: The total supply of ether is 111,562,994 as of publishing time, according to Messari. But the larger issue is the difficulty in verifying this. Ethereum full nodes are labor intensive and third-party scripts often miss important details.  PODCASTS Rogan For The Fed Former hedge fund manager Hugh Hendry joins the latest episode of The Breakdown to discuss why the Federal Reserve should be less conservative, the decade-long equities bull market and why Joe Rogan should chair the Fed.  WHO WON #CRYPTOTWITTER Blockchain Bites A newsletter from CoinDesk See previous editions Copyright © 2020 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences here.