Cryptocurrency

Goldman Sachs Identifies Crypto Stocks That Massively Outperformed The S&P 500

Published

3 years ago

April 28, 2021

Wall Street banking giant Goldman Sachs has identified an emerging cluster of crypto-related stocks that are performing much better than the index itself.

In a note to investors on Tuesday, April 27, analysts at the investment bank highlighted 19 U.S. stocks that had a market capitalization of more than $1 billion and close ties to the cryptocurrency and blockchain industry.

Goldman’s investment gurus stated that many of these stocks have “dramatically outperformed” the broader stock market, with the firms averaging a return of 43 percent this year, which is more than three times the 13 percent that the S&P 500 has gained over the same period.

The leading two stocks were crypto mining companies Marathon Digital Holdings and Riot Blockchain with gains of 218 percent and 151 percent year to date respectively.

Tesla has also had a solid year with the stock reaching an all-time high of $883 in January a couple of weeks before its announcement it had invested $1.5 billion into Bitcoin. Facebook has also been cited as a big dabbler in the space with plans to launch its own cryptocurrency this year.

Another of Bitcoin’s corporate backers was MicroStrategy, which saw its stock price explode in mid-April just before Bitcoin itself hit an all-time high of $65,000. Goldman estimates that the company has BTC holdings valued at around $4.5 billion.

Jack Dorsey’s payments firm Square has also poured money into crypto assets with a $220 million Bitcoin buying spree. Other payment giants leaning heavily towards crypto include PayPal, MasterCard, and Visa which are all offering some forms of digital asset payments and even trading in some instances.

Goldman analysts noted that two big banks, BNY Mellon and JPMorgan Chase, have spearheaded blockchain adoption through crypto custody and interbank transactions.

The list was rounded out with U.S. exchange Coinbase, exchange operator Overstock.com, blockchain pioneer IBM, microchip maker Nvidia, and financial services firms InvestView, Broadridge Financial, and Ideanomics.

In a note to clients last week, Dan Ives, an analyst at investment firm Wedbush Securities painted the bigger picture:

“The story and theme here are much larger than just investing in Bitcoin and predicting its potential price path… It’s about the potential ramifications that crypto, blockchain, and Bitcoin could have across the corporate world for the next decade.”

It has been reported that there have been hundreds of funds making significant investments into the crypto and blockchain industries despite the lack of a U.S. Bitcoin ETF.

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Temitayo Olukoya

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Cryptocurrency

SEC to Implement Stricter Cryptocurrency Measures, Considers Removing Naira from P2P Platforms

Published

3 hours ago

May 7, 2024

Samed Olukoya

Amidst growing concerns over the proliferation of illicit activities and market manipulation in Nigeria’s cryptocurrency space, the Securities and Exchange Commission (SEC) is gearing up to enforce stricter regulations.

Dr. Emomotimi Agama, the Acting Director-General of the SEC, recently convened a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), signaling a decisive shift in the regulatory landscape.

One of the key measures under consideration is the removal of the naira as a currency pair from cryptocurrency peer-to-peer (P2P) platforms.

Agama highlighted the surge in P2P crypto trading, which has reportedly impacted the stability of the naira’s exchange rate.

The SEC is contemplating delisting the naira from these platforms to curb market manipulation and protect the integrity of the Nigerian capital market.

During the meeting, Agama emphasized the SEC’s commitment to enforcing the Investments and Securities Act of 2007 rigorously.

He underscored the need for all market participants to adhere to established legal frameworks, irrespective of the technological advancements in digital assets.

The proposed regulatory measures represent a significant departure from the SEC’s previous approach to cryptocurrency oversight.

Unlike past administrations, which adopted a more lenient stance, the current leadership is poised to issue guidelines aimed at making crypto trading more stringent in Nigeria.

Agama’s call for the removal of the naira from P2P platforms underscores the SEC’s determination to address market distortions effectively.

The move reflects the Commission’s resolve to foster transparency and accountability in the cryptocurrency space while safeguarding national economic interests.

In addition to considering the delisting of the naira, the SEC is in the process of developing comprehensive regulatory guidelines for the digital asset sector.

These guidelines, crafted in consultation with various stakeholders, will cover a wide range of crypto-related activities, including wallet services, digital asset custody, and fund management.

Agama urged the cryptocurrency community to cooperate in identifying and addressing harmful practices within the market.

He stressed the importance of collaboration and openness in achieving a transparent and thriving digital asset environment, aligning with the government’s agenda for the fintech sector.

The SEC’s push for stricter cryptocurrency measures comes amid heightened regulatory scrutiny and concerns over illicit activities in the crypto space.

Recent actions by regulatory authorities, including the classification of cryptocurrency trading as a national security issue and directives to fintech startups to block crypto-related transactions, underscore the government’s resolve to clamp down on crypto-related abuses.

As Nigeria navigates the evolving regulatory landscape for cryptocurrencies, stakeholders await further developments from the SEC and anticipate the rollout of the proposed regulatory guidelines.

The outcome of these efforts will likely shape the future trajectory of the country’s crypto industry and its integration into the broader financial ecosystem.

Cryptocurrency

Dogecoin, Shiba Inu, NEAR Protocol Soar 5%-10% in Cryptocurrency Rebound

Published

3 days ago

May 4, 2024

Samed Olukoya

Dogecoin, Shiba Inu, and NEAR Protocol have seen impressive gains ranging from 5% to 10%, igniting optimism among investors after a period of volatility.

Dogecoin, the meme-inspired digital currency, surged by 5% to add to its recent momentum while Shiba Inu, another popular meme coin, followed suit with a 10% jump.

NEAR Protocol, a blockchain platform focusing on decentralized applications, also joined the rally with a solid 5% increase.

This surge comes on the heels of Bitcoin’s resurgence, which saw a nearly 5% gain to briefly break the $62,000 price level.

Ethereum, the second-largest cryptocurrency by market capitalization, reclaimed the $3,000 level, further bolstering confidence in the market.

The rally was spurred by the release of the U.S. April jobs report, which showed the addition of 175,000 jobs, falling short of the expected 245,000.

This unexpected development eased concerns about higher interest rates, prompting a positive response from cryptocurrency investors.

Market analysts pointed out that the softer-than-expected jobs data led to an increase in the likelihood of at least one rate cut by September, according to CME FedWatch data.

This dovish sentiment, coupled with the Federal Reserve’s indication of no immediate interest in cutting rates, contributed to a more favorable environment for cryptocurrencies.

Moreover, Coinbase analysts highlighted the recent Federal Open Market Committee (FOMC) meeting, where policymakers tapered the pace of the central bank’s balance sheet runoff, signaling a more dovish stance.

This move was interpreted as a positive signal for both fiat and cryptocurrency markets.

Arthur Hayes, former CEO of BitMEX, expressed confidence in Bitcoin’s recent performance, suggesting that it may have bottomed out at $56,000.

However, he cautioned investors to expect a gradual recovery rather than a swift ascent to previous highs.

Hayes forecasted a period of range-bound price action between $60,000 and $70,000 until August.

As the cryptocurrency market continues to navigate through fluctuations, the recent rebound in Dogecoin, Shiba Inu, and NEAR Protocol reflects a renewed sense of optimism among traders, fueled by positive developments in the broader financial landscape.

Cryptocurrency

Binance Boss Behind Bars: CZ Sentenced to Four Months for Crypto Exchange Failures

Published

6 days ago

May 1, 2024

Samed Olukoya

Binance founder Changpeng Zhao, widely known as CZ, has been sentenced to four months in prison for his role in security failures that enabled cybercriminals and terrorist groups to exploit the Binance platform.

The verdict, delivered by US District Judge Richard Jones in Seattle, is the first time a chief executive officer of a major cryptocurrency exchange has been incarcerated for breaching banking secrecy laws.

The courtroom, packed with onlookers and CZ’s legal team, witnessed the billionaire entrepreneur, clad in a dark suit and light blue tie, receive his sentence stoically.

Despite fervent pleas from prosecutors for a three-year sentence to set a precedent in the crypto industry, Judge Jones opted for a shorter term.

In his statement, Judge Jones emphasized that no individual, regardless of wealth or status, is exempt from accountability under the law.

The case against CZ stemmed from a protracted investigation by the US Department of Justice, casting a long shadow over Binance, one of the world’s largest cryptocurrency exchanges, and its high-profile leader.

Prosecutors argued that CZ’s failure to implement adequate money laundering safeguards facilitated illicit transactions, enabling cybercriminals and even terrorist groups like Hamas to operate freely on the platform.

The sentencing also comes on the heels of similar crackdowns within the cryptocurrency space, including the recent conviction of Sam Bankman-Fried, a former crypto titan who received a 25-year prison sentence for defrauding FTX customers of billions of dollars.

CZ’s defense team, however, contended that he should be spared imprisonment due to his non-US citizenship, which they argued put him at heightened risk in a US detention facility.

Nevertheless, Judge Jones emphasized the gravity of CZ’s offenses, terming them “unprecedented” in scale and impact.

In a post-sentencing statement on social media, CZ expressed acceptance of his fate, vowing to “do his time” and focus on education and philanthropy upon his release.

Despite his impending incarceration, CZ affirmed his commitment to the cryptocurrency sector as a passive investor.

The implications of CZ’s sentencing extend beyond his personal fate, raising questions about regulatory oversight and accountability within the burgeoning crypto industry.

Federal prosecutor Kevin Mosley underscored the deliberate nature of CZ’s violations, arguing that they were not mere oversights but intentional breaches of US law.

As CZ prepares to serve his prison term at Seattle’s Federal Detention Center, SeaTac, the crypto community grapples with the repercussions of his downfall.

The episode serves as a stark reminder that, despite the decentralized ethos of cryptocurrencies, regulatory scrutiny and legal accountability remain paramount in an increasingly interconnected financial landscape.