Did ARK Invest CEO Cathie Wood Predict Coinbase Stock Will Fall?

Audy Castañeda
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Did ARK Invest CEO Cathie Wood Predict Coinbase Stock Will Fall?

ARK Invest heavily reduced its positions on Coinbase by selling $26.23 million worth of shares over the past week. However, technical analysis paints a bullish picture as both the weekly and daily time frames support the rise. In any case, falling below the resistance line of the current pattern could trigger a sharp drop toward the support line of the same pattern.

Coinbase (COIN) hit the highest weekly close since April 2022 last week. The close was also made above the $100 horizontal resistance area.

ARK Invest reduced its position in shares of the exchange, Coinbase by $26.23 million. This was the third sale in the last seven days.

COIN Weekly Close Validates Breakdown

The flagship ETF fund “ARK Innovation” sold 127,266 shares, “ARK Next Generation” sold 44,784 shares, and “ARK Fintech” sold 76,788 shares.

However, technical analysis paints a bullish outlook. The COIN price is showing bullish signs on both the weekly and daily time frames, which could lead to a continued rise.

The COIN price has increased since the beginning of the year. It created a higher low in June and accelerated its rate of increase afterward. Last week, the price closed at $105.

This was the highest close since April 2022 and also triggered a break above the $100 horizontal resistance area. Therefore, it is a significant bullish sign that could mean that the bullish move is just beginning.

Also, the weekly RSI supports the ongoing rise. The RSI is a momentum indicator used by traders to assess whether a market is overbought or oversold and to determine whether to hoard or sell an asset.

Readings above 50 and a bullish trend suggest that the bulls still have an advantage, while readings below 50 indicate the opposite. The indicator is above 50 and rising, both signs of an uptrend.

How Long Will Coinbase’s Stock Price Rise Continue?

The daily time frame offers two possibilities for future movement. It is most likely bullish given the price action and wave count. Using Elliott Wave theory, technical analysts examine long-term price patterns and the psychology of recurring investors to determine the direction of a trend.

The most likely count suggests that the COIN price has just started wave three of a five-wave rise. This is also supported by the fact that the price has just broken out of a rising parallel channel.

If the count is correct, the price will complete wave three near $150 before revalidating the resistance line of the channel as support. Then another rise to $170 is likely.

Despite this bullish COIN price prediction, falling below the resistance line of the channel will mean that the trend remains bearish.

In that case, the COIN price will likely have completed an ABC correction (black) and could drop to the channel support line at $65.

Crypto Experts’ Warnings

While many industry players are turning increasingly bullish on Coinbase, the team of analysts at investment firm Berenberg Capital Markets warned that many aspects of cryptocurrency exchange regulation are far from resolved.

In a July 17 investment note, lead analyst Mark Palmer said that Coinbase Earn, a financial product that offers returns on staking cryptocurrency, appears “particularly vulnerable” to being defined as a security, in light of comments made by Judge Torres in her Ripple ruling.

By Audy Castaneda

UK to Ban Incentives to Invest in Crypto in October

Marina Meza
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UK to Ban Incentives to Invest in Crypto in October

FCA recalls the ban in a statement announcing significant steps in its work to share illegal financial promotions on social media.

Starting October 8, 2023, the UK regulator The Financial Conduct Authority (FCA) will ban incentives to invest in crypto, such as “refer-a-friend” bonuses.

The FCA reminds that companies must introduce clear risk warnings and a 24-hour cooling-off period to give first-time investors time to consider their investment decision. These are measures similar to the regime in force for other high-risk investments.

UK Crypto

Proposals for the new social media guide will modernize the information businesses must use when promoting financial products or services online. For example, the FCA is consulting on expanding its guidance to reflect the current ways in which social media is used to advertise financial products and services.

Lucy Castledine, the FCA’s director of consumer investment, says the agency has seen an increasing number of ads that don’t meet the guidance for stopping consumer harm. “We want people to stay on the right side of our rules, so we’re updating our guidance to clarify what we expect from businesses when they trade financial products online.”

The FCA says it has stepped up scrutiny over online financial promotions, which it says are often illegal. It also refers to the significant increase in the notoriety of influencers.

In fact, the FCA has warned financial influencers or “finfluencers” that crypto promotions or financial advice, without FCA approval, could be an offense punishable by up to two years in jail, an unlimited fine, or both. The law even applies to promotions from outside the UK that may affect people in the country.

Regulations on Memes Promoting Cryptoactives

Under the proposed guidelines by the FCA, memes deemed to be promoting crypto assets may need to add disclaimers to comply with advertising regulations.

Regarding promotions in the cryptocurrency industry, the FCA stated that it had seen memes from cryptocurrency companies. Many are unaware that these memes are subject to their promotional rules. Promotional memes are quite popular in the cryptocurrency sector, and any communication could be considered a financial promotion.

The FCA considers cryptocurrencies to be a high-risk investment. Companies can advertise crypto assets to general retail investors. However, they must include risk warnings. The FCA also suggested a ban on investment incentives.

Crypto ATMs

The regulator also informed at the beginning of July of the close surveillance it is carrying out on crypto ATMs. Since early 2023, FCA has inspected 34 UK locations suspected of hosting crypto ATMs.

The regulator claims that the visits are part of a coordinated operation with other regulatory agencies “to crack down on this illicit sector.” During this time, they interrupted 26 machines that were operating illegally throughout the country.

The FCA reminds us that if someone uses a crypto ATM in the UK, they are using a machine that works illegally and may be giving their money to criminals. Whoever does it is not protected by law if something goes wrong they could lose their money, he says. “We will continue to warn the public and take appropriate enforcement action against unregistered crypto ATM operators,” the FCA says.

As of January 10, 2021, all UK crypto asset companies must be registered with the FCA. Since then, operating without a registry is a crime.

By Marina Meza

The New Global Crypto Asset Rules: There’s No Place to Hide

Marina Meza
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The New Global Crypto Asset Rules: There’s No Place to Hide

How new global regulations are changing the cryptocurrency landscape, and what this means for crypto asset companies.

The world of cryptocurrencies is undergoing a significant change, as. new global rules are leaving cryptocurrency companies with nowhere to hide, according to the G20 watchdog. These measures seek to guarantee financial stability and protect investors from the risks associated with crypto assets.

Impact of the New Regulations on the Cryptocurrency Market

The new regulations are designed to address the challenges that crypto assets pose for financial stability. These rules seek to address the risks that crypto assets can pose to the global economy, including market volatility, lack of transparency, and the possibility of illicit activity.

Cryptocurrency companies must adapt to these new regulations and ensure that they comply with the standards set by global regulators. This includes the implementation of robust security measures, transparency in its operations and cooperation with regulatory authorities.

FSB Secretary General John Schindler said on July 17 that all countries should adopt the crypto recommendations even if they are not members of the Group of 20. The rules would not have applied to FTX because the Bahamas is not part of the FSB. He added that the rules provide the clarity exchanges need, and companies can no longer claim ignorance.

The Basel Banking Committee and the International Organizations of Securities Commissions will develop more granular rules. IOSCO proposed a global approach to crypto regulation in May.

The FSB published a draft of its new recommendations in July 2022, which the leaders of the Group of Seven countries (G7) pledged to put into practice. They also support the recommendations of the Global Financial Action Task Force to reduce the risk of crypto money laundering.

Future of Cryptocurrencies in a Regulated World

The new global rules represent an important step towards regulating cryptocurrencies. Although these measures can present challenges for cryptocurrency companies, they also offer an opportunity to establish a more secure and transparent framework for investors.

In this regard, the IMF has long called for a global response with these features: coordination, to fill the regulatory gaps that arise from inherently cross-sector and cross-border issuance and ensure a level playing field; consistency, in a way that harmonizes with traditional regulatory approaches across the spectrum of activities and risks; and comprehensiveness, encompassing all actors and all aspects of the crypto ecosystem.

As the world of cryptocurrency continues to evolve, it is essential that cryptocurrency businesses adapt to and comply with these regulations to ensure their survival and future success.

Conclusion

Global cryptocurrency regulations are an important step towards legitimizing cryptocurrencies and protecting investors. Although these rules can present challenges for cryptocurrency companies, they also provide an opportunity for these companies to demonstrate their commitment to transparency and integrity. As the world of cryptocurrency continues to evolve, we are likely to see more changes and developments in the regulatory space.

A global regulatory framework is expected to bring order to markets, help promote consumer confidence, set the limits of what is permissible, and offer a safe space for useful innovation to continue.

By Marina Meza

CoinShares: Inflows into Crypto Investment Funds  Rise for Fourth Consecutive Week

Audy Castañeda
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CoinShares: Inflows into Crypto Investment Funds  Rise for Fourth Consecutive Week

According to data published by CoinShares, last week saw an increase in deposits of investment products in digital assets. In the last seven days, the figure reached 137 million dollars.

CoinShares emphasized that, with these notes, the streak marks a fourth consecutive week. The amount for that period reached 742 million dollars. These new figures interrupt a reverse cycle, characterized by going in the direction of withdrawals. The clarifying data on the panorama is that it is the longest streak of deposits since the fourth quarter of 2021.

Details of Cryptocurrency Work Done by CoinShares

The weekly survey of the European company concludes that the annual average in terms of trading volume remains above 1,400 million dollars. Furthermore, it concludes in these terms:

“Digital asset investment products recorded $137 million in inflows last week. Tickets for the last 4 weeks now stand at $742 million, representing the largest number of tickets since the last quarter of 2021.”

“These volumes also represent a larger proportion of total cryptocurrency trading volumes, accounting for 11% last week, significantly higher than the 2% average.”

“Bitcoin saw inflows totaling $140 million, which comprise 99% of all inflows. While shorted bitcoin investment products saw a 12th week of outflows of $3.2 million.”

Ethereum did not continue the favorable trend in terms of income of most cryptocurrencies. Over the past seven days, it has earned a $2 million record from exits. If the comparative cut is made taking into account so far in 2023, Ethereum would be at the top of the list of cryptocurrencies that have suffered the greatest number of withdrawals.

CoinShares tweeted on July 17 that “In terms of crypto assets, $BTC is comprising 99% of inflows with a total of US$140m. Bitcoin investment products saw a 12th week of outflows of US$3.2m.”

The work pays special attention to the origin of the entries. The United States and Canada take an overwhelming majority of cryptocurrency trades, reaching $109 million in revenue for the former and $28 million for the latter.

The SEC vs. Ripple Factor

One of the reasons on which the study on the support of deposit levels can be based is directly related to one of the most important legal battles in the crypto universe. It is worth remembering that a United States federal judge ruled in favor of Ripple in its case against the United States Securities and Exchange Commission. On the spot, the price of XRP skyrocketed over 37%.

Its relevance grew with the passage of time. The judicial resolution comes after a legal fight of almost three years and could set a precedent for future similar cases. The initial lawsuit came in December 2020, when the SEC filed charges against Ripple for the alleged sale of “unregistered securities.”

A few hours ago, Gary Gensler, president of the SEC, expressed his frustration regarding Ripple’s judicial victory against the lawsuit that the commission had filed.

“We are satisfied with this decision that recognizes the importance of protecting institutional investors. Although we are disappointed with what they said about retail investors, we are still looking at it and evaluating that opinion.”

In regards to an eventual regulatory proposal, he pointed out that he would “reserve our comment on any bill for members of Congress who ask us directly.”

By Audy Castaneda

US Banks Could Embrace XRP for Cross-Border Payments, and More News

Audy Castañeda
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US Banks Could Embrace XRP for Cross-Border Payments, and More News

Ripple Labs legal director has suggested that US-based banks might consider XRP for payments.

Stu Alderoty, the legal director of Ripple Labs, has apparently claimed that US-based banks could turn to XRP for cross-border transactions. This, after a recent court ruling.

According to a CNBC report on July 17, Alderoty expressed confidence that American banks and financial institutions could start exploring the use of XRP for cross-border payments.

Ripple and XRP: A Change in the Legal Landscape

The recent court decision in Ripple’s case against the SEC has led JPMorgan analysts to conclude that cryptocurrency exchange Coinbase could benefit from this ruling.

According to JPMorgan analysts, the partial decision in the Ripple case was favorable to Coinbase. This determination could have a positive impact on the 13 actively traded tokens on Coinbase, which the SEC has deemed to be securities.

Analysts commented that “The ruling appears on the surface to be a win for Coinbase in its recent lawsuit by the SEC. We see Coinbase in the best position to benefit from the improved confidence and regulatory clarity given Coinbase’s market-leading position and respected reputation in the industry.”

The ruling is favorable for Coinbase since it may be applied to the 13 tokens actively traded on Coinbase, which the SEC alleged are securities in its lawsuit against the company last month, according to JPMorgan analysts.

r/CryptoCurrency Moons Price Soars After Hints of Possible Kraken Listing

The native token of r/CryptoCurrency users on Reddit, known as Moons, saw a sharp rise on Monday. This, after representatives of the Kraken cryptocurrency exchange hinted at the possibility of listing the token on their platform.

r/Cryptocurrency MOONs tweeted the following on July 17:

“Interesting changes to Reddit TOS. Clear separation between Virtual Goods (web2) and Verified Virtual Goods (web3). Virtual Goods: Coins and Awards to be canceled soon. Verified Virtual Goods: Collectible Avatars, Community Points.”

According to data provided by CoinGecko, the price of the token doubled during the day, registering an impressive increase of 50% and reaching $0.21 in the last 24 hours.

Moons are awarded to r/CryptoCurrency users based on their activity on the subreddit; in addition, they can be used for tipping among members of the community.

Binance Cuts Employee Benefits Amid Company Reassessment

Binance has made the decision to cut certain benefits for its employees as part of its efforts to reassess the company. According to a July 17 report published in The Wall Street Journal, Binance has stopped offering reimbursements to its employees for certain expenses. Including the use of mobile phones, gym and working from home.

The company cited the “current market environment and regulatory climate” as reasons for this profit cut. Noting that there has been a “drop in profits.” These changes suggest that additional cost-cutting measures by Binance may be necessary.

Dfinity Foundation Launches $5 Million Grant Program to Boost Artificial Intelligence

The Dfinity Foundation, a nonprofit foundation, has launched a new $5 million grant program aimed at advancing artificial intelligence applications in the realm of Blockchain technology and smart contracts. The program, launched today, will fund the development of decentralized artificial intelligence, also known as “DeAI.”

By Audy Castaneda

How Does the Congress Law for Crypto Assets in Peru Affect Investors?

Audy Castañeda
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How Does the Congress Law for Crypto Assets in Peru Affect Investors?

Some members of the cryptocurrency industry in Peru say that the initiative has formal and substantive problems. The project establishes that the exchanges that operate must be constituted as legal entities domiciled in Peru. The document is contrary to what is established in the Free Trade Agreement, which states that a foreign company cannot be forced to establish a company in Peru.

On July 8, the Economic Commission of the Congress of the Republic approved the draft of the law that seeks to regulate cryptoactive companies in Peru. These are some of the considerations to take into account in this regulation.

In January 2022, the Peruvian congressman Jose Luis Elías Ávalos presented the Framework Law for the Commercialization of Cryptoactives Bill, a project aimed at regulating organizations that provide cryptoactive services in Peru.

Pros and Cons of the Regulation of Cryptoactive Companies in Peru

Currently, the project has already been approved by the Economic Commission of the Congress of the Republic. After this step, the document continues on its way to be accepted in its entirety. However, there are several positions related to the relevance, pros and cons of the project.

In the first instance, the Blockchain Association Peru pointed out to local media Gestión de Perú, that the initiative has formal and substantive problems. This is indicated by the fact that, in its drafting process, the bill “never collected the observations of specialists or regulatory entities.”

Another important issue is that the bill aims to establish the user as the sole responsible for investing money in the cryptoactive platforms in Peru. This is evident in several sections of the bill, such as the fifth article, that reads as follows:

“The acquisition and use of crypto assets and cryptocurrencies are the absolute responsibility of their buyers and owners who, based on the principles of free market and free competition, must seek to be informed of the risks inherent in trading with assets of any kind.”

However, for the Economy and Finance Commission of the Peruvian Congress, the legal framework for trading crypto assets will provide “clarity, transparency, and legal certainty” to investors and issuers of cryptocurrencies.

Main Points of the Project that Would Affect investors

In addition to the aforementioned, Roberto Vargas, president of the Fintech Association of Peru also shared his point of view. For Vargas, the bill does not mention the different business models of the crypto industry, such as medium and small exchangers or cryptocurrency mining.

Due to the above, it is necessary that these types of laws are more exact when it comes to communicating what will be regulated. For example, in the case of Colombia, since 2022 a bill had been presented that sought to regulate “exchanges in the country.” The project speakers decided to limit its scope because it could lead to confusion.

The bill establishes that the exchanges that operate must be constituted in Peru as legal entities domiciled in Peru. This turns out to be an impediment for several investment companies. Even, according to lawyer Morales, this section of the bill could go against the Foreign Trade Agreement.

Whether or not the Congress will agree to open a space for debate remains to be seen. Thus, other protagonists of the crypto world be able to participate in the conversation.

By Audy Castaneda

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