Coinbase stumbles to its lowest price since going public as the crypto market sells off

coinbase direct listing
  • Coinbase shares on Monday hit their lowest level since making their public trading debut in April.
  • The stock fell as much as 8% on Monday as a sell-off in bitcoin led to weakness across assorted cryptocurrencies.
  • See more stories on Insider’s business page.

Coinbase shares on Monday fell to their lowest price since the cryptocurrency exchange began trading last month, under pressure as bitcoin and other cryptocurrencies heavily sold off.

Risk aversion appeared to hit the crypto market broadly as bitcoin slumped to a February low and other stocks exposed to bitcoin lost ground. Losses for bitcoin and other cryptocurrencies pulled the valuation of the global cryptocurrencies market down by much as $50 billion during Monday’s session, according to CoinMarketCap.

Coinbase shares fell as much as 8%, to $238.25, marking the first time they had dropped below the reference price of $250 set before the stock’s public-market debut in April. Actual trading opened at $381 on April 14.

Coinbase’s stock has largely pulled back since they surged to $429.54 in their first day of trading. Their arrival marked the first cryptocurrency exchange to go public. Bitcoin was also in the spotlight on that day as it hit a record above $64,000.

But bitcoin on Monday sank below $43,000 after Tesla CEO Elon Musk suggested the electric car maker might – or had sold – its holdings in the cryptocurrency. Bitcoin pared its loss after Musk clarified that Tesla still held its bitcoin stake. However, bitcoin’s price still suffered as did those of other cryptocurrencies including a 6% decline in Ether, the token of the Ethereum blockchain, lost 5%, Cardano-ADA fell 10%, and Dogecoin shed about 4%.

The value of the global cryptocurrency market lost as much as 23% over the past five days since reaching its most recent market-cap high of $2.56 trillion.

Coinbase last week reported first-quarter adjusted earnings of $3.05 per on revenue of $1.8 billion that met expectations. Coinbase did say it planned to start offering dogecoin for trading in six to eight weeks.

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Elon Musk impersonators have stolen more than $2 million through crypto scams, FTC says

Elon Musk
  • Scammers impersonating Elon Musk have stolen more than $2 million in the past six months alone, according to the FTC.
  • The number of scams has risen as many attempt to cash in on the cryptocurrency buzz this year.
  • The agency said people in the age group 20 to 49 were five times more likely to report losing money to fraud.
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Crypto scammers impersonating Elon Musk have stolen more than $2 million in the past six months alone, according to the Federal Trade Commission. The activity comes amid exploding interest in crypto investing.

The FTC said the fraudulent schemes have many forms, and so-called giveaway scams are among the most common. They’re false setups supposedly sponsored by celebrities who promise to multiply or match the amount of cryptocurrency sent. Under such a scam, people send cryptocurrency directly into the scammers’ wallets.

It may not come as a surprise that the Tesla chief is among the figures being impersonated the most given his vocal opinions as a cryptocurrency enthusiast, which also seem to have market-moving effects.

Musk, one of the prominent figures in the cryptocurrency space, has, several times in the past, moved the price of dogecoin, GameStop, and Etsy, among others.

Most recently, bitcoin has been the asset caught in the middle of the billionaire’s tweeting spree. Over the weekend, Musk – the self-proclaimed Dogefather – sent the price of the cryptocurrency plunging after he seemed to have suggested that his electric vehicle company had sold its holdings, and then clarifying that Tesla, in fact, did not.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Since October 2020, nearly 7,000 people have reported losses of more than $80 million on these scams at a median loss of $1,900 – 12 times the number of reports and nearly 1,000% more in reported losses compared to the same period last year.

Another type of ploy, which topped the list as the most lucrative way to obtain cryptocurrencies, is the “investing” scam, FTC said. This typically involves impersonating a government authority or a well-known business.

“Sites use fake testimonials and cryptocurrency jargon to appear credible, but promises of enormous, guaranteed returns are simply lies,” the agency said. “But people report that, when they try to withdraw supposed profits, they are told to send even more crypto – and end up getting nothing back.”

Many told the FTC that they fed cash into bitcoin ATMs to pay fraudsters claiming to be from the Social Security Administration. Coinbase Global, a cryptocurrency exchange, is another commonly referred to business by scammers.

As for the demographic profile of those being people targetted, the agency said people in the age group 20 to 49 were five times more likely to report losing money to scams compared to older age groups.

People 50 and older were far less likely to report losing money, but on an individual basis, reported losses at an average of $3,250.

“Cryptocurrency enthusiasts congregate online to chat about their shared passion,” the agency said. “And with bitcoin’s value soaring in recent months, new investors may be eager to get in on the action.”

Cryptocurrencies have skyrocketed in 2021, hitting a $2 trillion market valuation in April, just three months after it breached the $1 trillion mark. The rally is led by bitcoin, which has grown 51% year-to-date, ether at 354%, and dogecoin at around 10,300%.

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The crypto market has lost 23% of its value in just the last 5 days

BTC vs. ETH 4
  • The market capitalization of global cryptocurrencies has dropped by 23% in just the last five days, according to data on CoinMarketCap.
  • The Bitcoin has fallen roughly 35% since hitting all-time high in mid-April as comments.
  • Tesla CEO Elon Musk has been responsible for recent swings in the cryptocurrency as he laments the amount of energy used to mine.
  • See more stories on Insider’s business page.

The value of the cryptocurrency market has slid by 23% in just the last five days. It’s been pulled lower by a sell-off in bitcoin most recently catalyzed by comments made by Tesla CEO Elon Musk.

The market cap for global digital currencies came in at $1.97 trillion on Monday, down from a recent peak of $2.56 trillion on May 12, according to data from CoinMarketCap.com.

“The crypto world is in the danger zone … as no one has a handle over short-term momentum because of uncertainty on where Elon Musk stands on bitcoin,” Edward Moya, a senior market analyst at Oanda, wrote in a note to Insider on Monday.

Bitcoin on Monday fell below $43,000 to its lowest point since February while other crypto prices suffered as well. Ether, the token of the Ethereum blockchain, was down nearly 8%, Cardano-ADA sank 10%, and Binance Coin fell about 9%. Dogecoin gave up 7%.

Solana was the only one of the 20 largest cryptocurrencies by market cap to gain ground Monday, up about 0.2%, according to CoinGecko.

Bitcoin dropped Monday after Musk on Twitter suggested Tesla might – or had sold – its holdings in the cryptocurrency. It slightly rebounded after Musk clarified that the electric vehicle maker still held its bitcoin stake. Bitcoin’s recent selloff was sparked after Musk last week said Tesla would stop taking bitcoin as payment because of the “insane” amount of energy needed to create new coins and secure the network.

“It seems unlikely that a massive financial institution will make a big bet on crypto in this current market as environmental concerns come to the surface,” said Moya.

Musk later suggested that Dogecoin may be a payment option for Tesla as he’s working with Dogecoin developers to improve system transaction efficiency.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100-times trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

“Everyone has been watching BTC fall, crashing 35% from all-time highs, just within a month,” said Justin Chuh, senior trader manager Wave Financial, a regulated digital asset investment firm, in a note. “Remember gravity and volatility? They exist. Some of the new crypto market entrants are about to have their first taste of risk

He continued: “A pullback was bound to happen. But we have to accept that those voices chirping around on social media aren’t helping and can actually make moves. This is healthy, but I think we all wish this didn’t happen.”

Broad risk aversion that hit US stocks on Monday didn’t aid the cryptocurrency market, said Moya, and “retail traders on social media platforms TikTok and Twitter are losing confidence and are getting closer to hitting the panic button.”

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Billionaire Mark Cuban says he holds 3,250 dogecoins he bought with his son – and earns added inflows from Dallas Mavericks sales

Mark Cuban
Mark Cuban.

Mark Cuban owns 3,250 dogecoins he bought with his 11-year-old son, the tech billionaire said in a tweet on Saturday.

On top of that, he said, he receives inflows of dogecoin from ticket and merchandise sales for the Dallas Mavericks, the NBA team he owns. In March, Cuban said his NBA team was the largest dogecoin merchant in the world.

The “Shark Tank” host said that since dogecoin is mined on a fixed schedule it could become a feasible payment mechanism.

Screenshot 2021 05 17 at 10.32.41
“Doge has ‘deterministic inflation’ meaning the amount of inflation is defined,” Cuban said in a tweet on Saturday. “There is no uncertainty as to the amount of created and it’s inflation percentage. Which could allow it to grow as a valid payment mechanism. The unknown is whether enough people will use it this way.”

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100-times trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Cuban, known for investing in unique businesses without relying too much on the stock market, has predicted that stocks will someday be traded via blockchain.

He acknowledged on Saturday that while dogecoin may not find support over the long term, users could take it in a new direction from its original intention.

“Like all generational technologies, it takes a generation to grow up,” he said. “Crypto is in the phase where users need to be educated and products and services need to be sold and deliver on their initial promises. Then, Crypto can mature to the point we wondered how we ever lived with out.”

Dogecoin was trading 5% lower on Monday, at $0.50, but it is up more than 10,000% this year. Cuban’s dogecoin holdings aside from the NBA team revenue would be worth about $1,690 as of Monday.

The meme-inspired digital asset has been under pressure over a series of events linked to the billionaire Tesla CEO Elon Musk. He recently suggested dogecoin could replace bitcoin payments for Tesla vehicles.

Dogecoin is one of the least stable cryptos on the market, according to Anthony Denier, the CEO of the trading platform Webull. “Since many people tie Doge to [Musk], any comments he makes about cryptos in general is going to affect Doge,” he said. “Also, bitcoin leads the crypto market, so for most cryptos, whichever way bitcoin moves, they follow.”

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Ethereum co-founder Vitalik Buterin destroys 90% of his Shiba Inu holdings – almost half the coin’s circulation

vitalik Buterin ethereum

Ethereum co-founder Vitalik Buterin burned 90% of his Shiba Inu holdings and will donate the remaining 10% according to a note he left on an ether transaction made on Sunday evening.

Over 40% of the coin’s total circulation have thereby been taken out of the market.

Burning and donating the coins was the only option, Buterin said. He’d previously been given 50% of all Shiba Inu tokens by the coin’s creators, said. It was the only way to avoid his transactions in Shiba Inu being interpreted as actions, or indicators on his part, he said.

Buterin also urged coin creators not to send large amounts of tokens to individuals or charities without their consent. “I don’t *want* to be a locus of power of that kind. Better to just print the coins into the hands of a worthy charity directly (though do talk to them first),” he wrote in his note.

The burned coins have effectively been taken out of circulation – “burning” a crypto token means sending it to a public address that is inaccessible, where it will then lay unused.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100-times trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

More than 40% of Shiba Inu tokens have now been burned, which amounts to around 410 trillion coins worth around $7 billion. Shiba Inu rose by over 40% to $0.00001953 after Buterin’s statement. Based on CoinMarketCap data, the coin was last up 0.6% in the 24 hours to 08:17 E.T., trading at $0.0000161.

SHIB is a small, dogecoin-inspired token that gained 1,000% last week. Its website describes it as an “experiment in decentralized spontaneous community building”. Binance’s Indian platform listed the SHIB coin late last week.

Buterin said he had not yet decided to which charity he would donate the remaining 10% of his Shiba Inu tokens. He said he wanted to support an organization that aimed to prevent “large-scale loss of life” in the long term.

Last week, Buterin donated Shiba Inu coins worth $1 billion to CryptoRelief, a crypto-based charity fund set up by Sandeep Nailwal, co-founder of the Ethereum platform Polygon, to support India in its fight against a deadly wave of COVID-19. Buterin said he would not donate the remaining Shiba Inu tokens to the same fund, as it was important to think about the future.

“I’ve actually been impressed by how the dog token communities have treated the recent donations! Plenty of dog people have shown their generosity and their willingness to not just focus on their own profits but also be interested in making the world as a whole better.” Buterin said.

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Bitcoin plunges to $42,000 after Elon Musk tweet-storm – but rebounds after he clarifies Tesla hasn’t sold its holdings

Elon Musk
Tesla CEO Elon Musk caused bitcoin to tumble.

  • Bitcoin plunged to as low as $42,185 on Monday, down 35% from April’s record high, before bouncing.
  • The price tumbled after Elon Musk suggested Tesla may sell its holdings and trolled bitcoin fans.
  • Yet bitcoin climbed back above $44,000 after Musk said Tesla had not in fact sold its stake.
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Bitcoin plunged to its lowest level since February on Monday after Elon Musk suggested Tesla might sell, or had sold, its holdings, only to rebound somewhat when the billionaire clarified his electric car company still held its stake.

The world’s most-traded cryptocurrency plunged to $42,185 at one point on Monday morning, after Musk replied “Indeed” to a Twitter post that said: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings.”

That was the lowest level since February 8 and 35% below the all-time high of close to $65,000 reached in April.

But bitcoin then rebounded somewhat when Musk tweeted: “To clarify speculation, Tesla has not sold any Bitcoin.” The token was down 8.7% at $44,896 at 4.40 a.m. ET.

Bitcoin has fallen sharply in recent days after Musk – previously one of its biggest cheerleaders – appeared to turn his back on the cryptocurrency.

The slide started on Wednesday when Musk tweeted a note saying that Tesla would stop accepting bitcoin as payment for its electric cars, saying the token’s “insane” energy use was damaging to the climate.

Musk’s announcement shocked crypto fans and sparked a broader sell-off in cryptocurrencies including ether, dogecoin and XRP.

His suggestion on Sunday night that Tesla had sold, or might sell, its bitcoin stake, which it bought for $1.5 billion in January, caused panic among investors in the token.

The Tesla boss has been one of the central drivers of the bitcoin boom. The electric car company selling its stake would be a major blow to the legitimacy of the digital asset.

Musk spent the weekend arguing with and trolling bitcoin fans on Twitter about its energy use and structural flaws.

“Bitcoin is actually highly centralized, with supermajority controlled by handful of big mining (aka hashing) companies,” he tweeted on Sunday night.

“A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound “decentralized” to you?”

He also continued to suggest Tesla was looking at accepting dogecoin – a cryptocurrency started as a joke in 2013 – as payment for its cars, saying doge would win “hands down” if it sped up its blockchain network.

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Bitcoin is the ‘apex predator’ of digital currencies – and dogecoin may be the crypto equivalent of silver, hedge fund manager Anthony Scaramucci says

Anthony Scaramucci
Anthony Scaramucci.

  • Anthony Scaramucci called bitcoin the “apex predator” of digital currencies.
  • Dogecoin may be the silver to bitcoin’s gold, the hedge fund manager said.
  • He said he advises people to hold between 1% to 3% of bitcoin within their portfolios.
  • See more stories on Insider’s business page.

Anthony Scaramucci, founder of investment firm SkyBridge Capital, defended bitcoin’s decline and said he advises investors to hold some amount of it as it’s the only cryptocurrency that’s achieved “escape velocity.”

Although other digital currencies have been gaining in popularity, bitcoin has managed to “maintain its supremacy as the apex predator in digital currency,” he said in a Bloomberg interview.

Bitcoin was last trading 7% lower on the day at around $45,700. It hit an all-time high near $65,000 in mid-April, but has lost momentum since and is now only up 57% so far this year. The digital asset was hit hard last week after Elon Musk cited climate-related concerns over its mining process and suspended bitcoin payments for Tesla.

Scaramucci, known for his infamously short stint as White House Director of Communications in the early days of Donald Trump’s presidency, has backed bitcoin for being a potential store of value compared to the US dollar. He says it would be responsible for him to advise clients to hold between 1-3% of the cryptocurrency in their portfolios.

“I’m not telling them you’ve got to own 100% of your net worth in it – but if we’re right, you don’t want to be missing out on this,” he told Bloomberg.

Read More: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100-times trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Ethereum’s ether, which is trading around $3,480, is also in the process of achieving escape velocity now that major changes are coming to its blockchain, he said.

Escape velocity – a term usually used in physics – suggests that if there is a 20% chance that bitcoin hits $400,000 and an 80% chance that it goes to zero, it is still underpriced at any price below $80,000.

Dogecoin was trading 3% lower at 50 cents on Monday. Musk has been actively supporting the meme-inspired cryptocurrency, while criticizing bitcoin.

Scaramucci said dogecoin, which is now the fifth-largest cryptocurrency by market capitalization, may just be the silver to bitcoin’s gold. “This is happening. This is upon us right now – you either get it or you don’t get it,” he said. Typically, silver is a lot more volatile than gold, but tends to respond to similar market catalysts.

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Elon Musk continues to talk up dogecoin – to the dismay of bitcoin bulls

Elon Musk
Elon Musk

Elon Musk tweeted about improving the dogecoin network on Sunday and said “obnoxious” bitcoin bulls made him want to go all-in on the joke cryptocurrency, before hinting Tesla may sell its bitcoin holdings.

Musk replied to a number of tweets with comments that suggest he believes dogecoin could become a serious cryptocurrency – despite being started as a prank in 2013.

The Tesla chief executive triggered a plunge in bitcoin on Sunday evening when he suggested the electric car company might sell its holdings, after buying $1.5 billion worth in January. He later clarified that it hadn’t sold any bitcoin.

After facing criticism over his stance on cryptocurrencies, he replied to one tweet saying: “Obnoxious threads like this make me want to go all in on Doge.”

Musk also responded to a tweet which said: “Elon is choosing $DOGE because Dogecoin is better than #Bitcoin in many fundamental ways.”

Musk replied: “Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”

He added: “For those bad at math, 100X higher transaction volume with 100X lower fees means total fees earned stay same. Low fees & high volume are needed to become currency of Earth.”

Musk’s tweets came days after he announced Tesla would stop taking bitcoin as payment due to the “insane” amount of energy it takes to create new coins and secure the network.

The Tesla boss said in the same message he was looking for low-energy alternatives. Then on Thursday, he tweeted: “Working with Doge devs to improve system transaction efficiency. Potentially promising.”

Musk’s interest in dogecoin has angered many bitcoin fans, who see the meme token as undermining the case for cryptocurrencies.

One Twitter account tweeted Musk saying: “Your recent poorly informed criticism of #bitcoin + support for Doge may be the perfect troll…or you might actually believe this (God I hope not).”

Dogecoin critics argue the coin’s network has a number of supply flaws, such as the fact that here is no cap on the number that can be created, in particular.

Despite Musk’s tweets, dogecoin was down 4.9% in the 24-hour period to 7.30 a.m. ET to trade at $0.50479. The token was up close to 20,000% over the last year, however.

Bitcoin traded 8% lower at $45,259, more than 30% off the record high touched in April.

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Billionaire Mark Cuban says he holds 3,250 dogecoin that he bought with his son – and earns added inflows from Dallas Mavericks sales

Mark Cuban
Mark Cuban.

Mark Cuban owns 3,250 dogecoin that he bought with his 11-year-old son, the tech billionaire said in a tweet on Saturday.

On top of that, he said he receives an added inflow of dogecoin from Dallas Mavericks sales of tickets and merchandise. In March, Cuban said his NBA team is the “largest dogecoin merchant in the world.”

The “Shark Tank” host said since dogecoin is mined on a fixed schedule, it could grow to become a feasible payment mechanism.

Screenshot 2021 05 17 at 10.32.41

Read More: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100-times trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Cuban, known for investing in unique businesses without relying too much on the stock market, has previously predicted stocks would someday be traded via blockchain.

He admitted dogecoin may not find support over the long-term, but there is potential for users to take it to a new direction from its original intention.

“Like all generational technologies, it takes a generation to grow up,” he said. “Crypto is in the phase where users need to be educated and products and services need to be sold and deliver on their initial promises. Then, crypto can mature to the point we wondered how we ever lived without.”

Dogecoin was last trading 5% lower on the day at 50 cents, but it is up more than 10,000% so far this year. Cuban’s dogecoin holdings, aside from the NBA team revenue, would be worth about $1,690 as of Monday.

The meme-inspired digital asset has been under pressure over a series of events linked to billionaire Elon Musk. But the Tesla boss has suggested it could be a replacement for bitcoin payments made to his electric vehicle-maker.

Dogecoin is one of the least stable cryptos on the market, according to Anthony Denier, CEO of trading platform Webull. “Since many people tie Doge to (Musk), any comments he makes about cryptos in general is going to affect Doge,” he said. “Also, bitcoin leads the crypto market, so for most cryptos, whichever way bitcoin moves, they follow.”

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Binance’s Indian exchange lists Shiba Inu coin a day after Ethereum creator Vitalik Buterin’s $1 billion donation

CZ 7 (1)
Changpeng Zhao is the CEO of the world’s largest crypto exchange Binance.

The largest cryptocurrency exchange in India has listed shiba inu coin for trading a day after ethereum co-creator Vitalik Buterin’s donation of about $1 billion worth of the tokens to India for COVID-19 relief.

Mumbai-based WazirX exchange, which is owned by Binance, listed the new token on Thursday, according to a blog post.

“We were receiving a lot of requests from our community to bring SHIB on WazirX, and hence, we decided to list it,” WazirX CEO Nischal Shetty told CoinDesk.

WazirX however will not accept direct SHIB deposits or facilitate its withdrawals. According to shiba inu’s website, the only place to buy or sell the dogecoin knockoff is on Uniswap.

Shiba inu, which was founded less than a year ago, took inspiration from a more established meme currency, dogecoin – even branding itself as a “dogecoin killer.” According to its website, shiba inu is an “experiment in decentralized community building.”

The WazirX listing comes a day after Buterin donated 50 trillion SHIB tokens worth around $1 billion to a crypto-based COVID-19 relief fund for India. The token has skyrocketed and gained almost 1,000% over the past week but plunged after news of Buterin’s donation broke.

Shiba inu was last at $0.00002035 on Friday morning, up by 15%, according to CoinMarketCap data. It is the 25th largest cryptocurrency in circulation based on its current market value of over $7.9 billion.

The listing of meme tokens is often seen as a sign of legitimacy in the cryptocurrency community.

On Thursday, Coinbase said it will list the dogecoin in six to eight weeks. Other exchanges that allow dogecoin trading include Kraken and Robinhood.

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