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Fintech CEO: Coinbase Hack Illustrates Need to Question Exchange Providers

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Recently, Reuters reported that hackers accessed the accounts of more than 6,000 Coinbase customers. The company sent a letter notifying users of the breach, which occurred earlier this year, between March and May. Functionally, hackers utilized a flawed SMS account recovery process to gain access to accounts and then transfer assets into external cryptocurrency wallets. The company said that they fixed the issue and that they are working with customers to reimburse them for funds lost.

“This is one of those situations which is better than it could have been, but, still, is a scary proposition for most investors,” opined Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges. “To the exchange’s credit, they’re working to make the situation right. However, it should set off alarms for folks that, no matter how big the exchange, security should always be top priority. Just because you’re utilizing a well-known exchange, that does not mean that you can’t fall victim to a hack.”

“Cryptocurrency investing is different from putting money into a savings account. Choosing a digital asset exchange is different from choosing a bank. The quality of the technology is just so much more important here. If you work with an old-school bank which doesn’t have a mobile banking component, your money’s security isn’t at risk. It may be annoying. But, at the end of the day, your money is safe and backed by the FDIC. Cryptocurrencies are a completely different kind of asset class. It makes the security apparatus and the technology stack utilized by your crypto exchange among the most important aspects of selecting an exchange,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“When you’re evaluating your options, you really need to dig deep. Check out what kind of security protocols are in place, as well as the kinds of technology they utilize to make sure that your assets are safe. As bureaucracy begins to catch up with technology, there should be a more comprehensive and robust set of compliance requirements. However, until that time comes, it is up to each individual exchange to do everything they can to safeguard their exchange. With so many exchanges cutting corners in order to get to market quickly, it can be a daunting task to select one with which you can feel comfortable. I think, with the coming crypto boom, we’re very likely to see many new exchanges which differentiate themselves based on the technology they use and the security they have in place. If you think about it, there’s really never been a better time to launch a cryptocurrency exchange,” stated Gardner.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Bitcoin

Bitcoin´s New All-time High Underscores its Mainstream Value

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Bitcoin is undeniably a mainstream asset class and most investors should consider including crypto assets as part of a diversified portfolio, asserts the boss of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The bullish observation from Nigel Green, CEO and founder of deVere Group, which has $12bn under advisement, comes as the world’s dominant cryptocurrency hits a new all-time high of more than $66,000 on Wednesday.

Mr Green notes: “In July, we publicly predicted that Bitcoin would reach and most likely beat it’s previous all-time highs.

“I am confident that whilst there might be some profit-taking in the near-term, so that investors can accumulate more later, the momentum is such that we can expect prices to continue on their upward trajectory.”

He continues: “This fresh all-time high deniably cements Bitcoin as a mainstream asset class.  I believe that most investors should consider including crypto assets as part of a diversified portfolio.

“Why? Because crypto is the inevitable future of money and there is clearly going to be advantages for those investors who have exposure early on – in the same way as those who invested in the major internet, online and tech successes back in the day, such as Amazon, Google and Apple, have secured enormous returns.”

Wednesday´s price highs come as the ProShares Bitcoin Strategy ETF – the first of its kind – launched on the New York Stock Exchange on Tuesday at the opening bell.

The deVere CEO says there are there are five main factors that will secure the longer-term upward price trajectory.

“First is the U.S. Federal Reserve saying it has no intention of banning cryptocurrencies. It’s highly probable that other cryptocurrencies will have more stringent regulatory oversight, yet Bitcoin could be viewed differently by authorities partly due to its gold-like status,” he observes.

“Second is the ongoing, mounting interest from institutional investors including Wall Street giants and major payments companies, who bring their capital, expertise and reputational influence to the market.

“Third, is the rising number of crypto advocates and mega influencers like Elon Musk, Jack Dorsey and Cathie Wood who have a clear message: crypto is the inevitable future of money.”

Fourth, the technicals back the prediction. Looking at Bitcoin halving events, over time we’ve seen that values rise substantially in the year after a halving. After the 2012 and 2016 Bitcoin halvings, prices increased by 55 times and 15 times respectively.

“And fifth, cryptocurrencies – Bitcoin in particular – have changed the way the world handles money, does business, makes transactions and manages assets. Investors appreciate the intrinsic value of digital, borderless, global currencies for trade and commerce purposes in increasingly digitalised economies in which businesses operate in more than one jurisdiction.”

He goes on to say: “This will only increase as mass global adoption increases. Only last month El Salvador became the first country in the world to adopt Bitcoin as legal tender, and I’m certain many others will follow suit.”

Mr Green concludes: “Today is a major milestone.  It underscores crypto´s mainstream appeal and galvanises its place in the global financial system.”

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Cryptocurrency

3 Largest Cryptocurrencies Account for Almost 70% of All Crypto Market’s Value

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The cryptocurrency sector has in the recent past witnessed a surge in the number of new coins joining the market amid rising value. However, despite hundreds of different coins existing, only a few established digital currencies are dominating the market.

According to data compiled by Finbold, the top three largest cryptocurrencies (just 0.02% of all 12,917 coins) by market capitalization account for 68.73% of the total cryptocurrency market of $2.53 trillion as of October 20, 2021.

Bitcoin has the largest share at 47.6%  or $1.2 trillion, followed by Ethereum at 17.93% or $454.76 billion. Binance Coin (BNB) takes the third spot at 3.2%.

Cardano (ADA) and Tether (USDT) round out the top five cryptocurrencies with a market share of 2.76% and 2.72%, respectively.

Crypto market heading in the right direction 

The domination by the three cryptocurrencies highlights the recent rise of the market that has witnessed an increase in both retail and institutional investors. The market has also recorded an introduction of new investment products: According to the research report:

“To summarize, many trade experts believe that the cryptocurrency market is now trending in a positive direction. The introduction of spot ETFs in line with suitable regulatory frameworks may aid the industry in gaining considerable momentum in the future.”

As the maiden cryptocurrency, Bitcoin holds the top spot in the market cap, with the assets receiving approvals from different players. The asset’s rise has led to proponents considering it as a hedge against inflation.

In the future, the asset is likely to expand its dominance in the market, especially with the emergence of new related investment products like the Bitcoin ETF.

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Bitcoin

Bitcoin Price Just 1% Off All-time High: Will this Trigger a Sell-off?

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Long-term Bitcoin holders will begin to realise some profits amid near all-time price highs, but we expect values to continue to rise due to more active market participants, predicts the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The prediction from Nigel Green, chief executive and founder of deVere Group, comes as the world’s dominant cryptocurrency was less than 1% off its all-time high of $64,888.

The price highs come as the ProShares Bitcoin Strategy ETF – the first of its kind – launched on the New York Stock Exchange on Tuesday at the opening bell.

Mr Green says: “The Bitcoin price has gained around 35% since mid-September as interest around the first SEC-approved Bitcoin ETF has grown.

“It’s been seen as a major test to see if mainstream investors are ready to include cryptocurrencies in their portfolios alongside other assets such as stocks and bonds – and it appears, judging by the reaction, that they are.”

He continues: “This will continue to drive not only Bitcoin but the wider digital assets sector, therby encouraging more ETFs, amongst other crypto vehicles, to be brought to market.

“This will inevitably bring in a growing number and broader range of active market participants, including those using pension funds, and retirement and brokerage accounts.

“The growing interest in and demand for crypto will help maintain the upward trajectory of Bitcoin and other digital currencies in the near term.”

In September, he forecast that the Bitcoin price would be back to its previous highs by the end of this year. This is already now almost proven to be an accurate prediction but, he says, the momentum will drive them further still.

Yet despite the growing number of active market participants which, as Nigel Green says, “as history teaches us, have matched with increasing interest in the digital asset in early stages of bull markets,” some long-term Bitcoin holders might “begin to realise profits.”

He notes: “Long-term holders typically buy in a bear market and sell in a bull run.  They are spurred into realising some profits when the price is close to or breaks the previous all-time high.

“As such, we can expect to see some long-term holders now cashing in some Bitcoin with a view to accumulating more later.”

However, the deVere CEO concludes that any long-term holders’ selling is “likely to be balanced by growing activity by new investors” and that therefore “the price momentum should be sustained.”

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