A DeFi project will pay back users $10 million in Ethereum that was recently stolen

Computer hacker

Rari Capital said it will pay back users who lost funds when about $10 million in ether was drained from the decentralized finance project’s liquidity pool.

On Friday Rari’s ether pool was attacked and approximately 2,600 ether, worth around $10 million at the time, was stolen. The loss equated to 60% of all users’ funds in the Rari Capital Ethereum Pool, according to a blog post from David Lucid, Rari’s lead developer.

On Sunday, Jai Bhavnani, Rari’s CEO, explained that the DeFi project will be reimbursing users who lost out due to the attack with two million of Rari’s RGT token that was initially going to be used to scale the team.

“While it was indeed initially meant to scale the team, all of the protocol contributors have elected to give that 2M $RGT back to the DAO with the ask of using the newly acquired $RGT to reimburse lost funds and reward those that helped in the war room,” Bhavnani said.

The Rari Governance Token is currently trading at $12.19. 2 million $RGT is worth roughly $24 million. The CEO said the DAO will keep the remaining tokens that aren’t being used to reimburse users.

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A luxury US hotel chain will accept bitcoin, dogecoin, and other cryptocurrencies as payment

GettyImages 1299369049
The bitcoin price broke past the vaunted $50,000 mark for the first time on Tuesday

Cryptocurrency users will now be able to pay for their hotel rooms with bitcoin, dogecoin, and ether when they stay at a Kessler Collection hotel.

The luxury hotel group, which owns hotels in Alabama, Colorado, Georgia, Florida, North Carolina and South Carolina, announced on Tuesday that it will accept cryptocurrencies including the meme-token dogecoin as forms of payment.

“This move will make it easier for guests traveling globally, both in time saved from going to a local currency exchange and in money saved with a lower exchange rate,” said Kessler Chief Financial Officer, Fravy Collazo.

The announcement comes as more institutions like Tesla and the Dallas Mavericks pledge to adopt cryptocurrencies as payment.

While Dallas Mavericks owner Mark Cuban has stated that dogecoin has no intrinsic value and is simply a “fun” asset, his NBA team is now the largest dogecoin merchant in the world. Last week he announced that the team has completed more than 200,000 transactions with the token.

Customers at Kessler Collection hotels will be able to pay in bitcoin, bitcoin cash, ether, dogecoin, as well as stablecoins USDC, Binance USD, Gemini Dollar, and PAX.

However, with many bitcoin investors preaching the message of “HODL,” which means holding the cryptocurrency in the long-term and avoiding selling, it’s hard to imagine the hotel chain will see a huge surge of bitcoin payments following this announcement.

“If you are optimizing for growing your investments, a better question is ‘why would you go on vacation if you can invest those funds in crypto?’,” Thomas Perfumo, Head of Business Operations and Strategy at Kraken told Insider. “An investor could otherwise simply purchase and transfer additional crypto without reducing their holdings, all within minutes or hours.”

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Coinbase’s direct listing is ‘an Amazon moment for crypto,’ and will bring cryptocurrency further into mainstream finance, D.A. Davidson says

Coinbase Founder and CEO Brian Armstrong
Coinbase Founder and CEO Brian Armstrong

  • Coinbase’s upcoming direct listing will be an “Amazon moment” for cryptocurrencies, according to D.A. Davidson. 
  • The firm initiated coverage of the crypto exchange with a “buy” rating and $195 price target. 
  • D.A. Davidson said the public debut will be a milestone for the convergence of cryptocurrency and traditional finance.
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Coinbase’s upcoming direct listing will be a milestone event, marking the covergence of cryptocurrency and traditional finance, according to a team of D.A. Davidson analysts. 

In a recent note D.A. Davidson initiated coverage of the cryptocurrency exchange with a “buy” rating and a price target of $195. Analysts led by Gil Luria said Coinbase’s public debut will be the “Amazon moment for crypto,” as cryptocurrency will move from “a large curiosity to becoming the future path for much of the financial system.” 

Coinbase will be the first major cryptocurrency exchange to go public. According to the analysts, the exchange’s superior user experience has positioned it as the “leader” in facilitating the onramp/off-ramp from government currency (like dollars) in crypto (like bitcoin.)

“With a big target on its back as a crypto wallet, (to date) Coinbase has been able to manage both government regulators as well as highly motivated hackers, while providing consumers with the experience they expect from a large financial institution,” the analysts added.

As both an exchange and broker, Coinbase’s competition includes Grayscale, Kraken, and Gemini, as well as broader consumer digital wallets like Square, PayPal, and Robinhood, said D.A.Davidson.

The firm’s $195 price target is based on 2021 revenue estimates, but the firm has not been able to connect with Coinbase during its quiet period. Revenue in 2020 was $1.28 billion, a jump from $553.7 million in 2019, according to a consolidated operations statement included in Coinbase’s filings.

For the year ended December 31, 2020, transaction revenue represented over 96% of net revenue. Bitcoin has soared 68% in 2021 and it’s unclear how that affects revenue estimates.

D.A. Davidson noted Coinbase is a more speculative investment than other companies it covers. They also noted the unusually high risks associated with the volatility of crypto prices, and said it’s too early to tell if Coinbase will actually become the Amazon of crypto or the Netscape.

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Evolve Funds files for Ether ETF weeks after winning Canadian approval for its bitcoin fund

FILE PHOTO: Representation of the Ethereum virtual currency standing on the PC motherboard are seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Representation of the Ethereum virtual currency standing on the PC motherboard are seen in this illustration picture

Just weeks after winning approval for one of North America’s first bitcoin ETFs, Evolve Funds is looking to give investors exposure to Ether. 

On Tuesday Evolve Funds announced it has filed a preliminary prospectus with the Canadian securities regulator for an Ether ETF. 

If approved, the fund (ETHR) would give investors exposure to the daily price movements of the US dollar price of Ether, the world’s second largest cryptocurrency. 

“Ether is the building block for a revolution in digital finance which is still in its infancy,” said Evolve CIO and COO Elliot Johnson in a press release. “All Ether transactions are recorded on the Ethereum computer network, which is a decentralized, open-source blockchain featuring smart contract functionality. Ethereum is the most actively used blockchain with Ether being used to pay for transaction fees and computational services.”

Evolve’s filing comes after CI Global Asset Management and Mike Novogratz’s Galaxy Digital filed a similar prospectus for an Ether ETF last week. 

Canada has not yet approved an Ether ETF, but it approved two publicly traded bitcoin ETFs this year. The funds exploded during their first days of trading. The Purpose Bitcoin ETF traded $165 million-worth of shares in its first day, while the Evolve Bitcoin ETF raised $421 million in two days, according to Bloomberg

Canada’s crypto-positive stance is raising hopes that the US will soon follow suit. In the latest attempt to launch a bitcoin ETF in the US, the Chicago Board Options Exchange filed an SEC request for approval of VanEck’s bitcoin ETF on Monday.



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Wedbush says Tesla’s bitcoin investment will spark further corporate adoption – and highlights 4 stocks already poised to gain from the crypto boom

Elon Musk
  • Tesla has paved the way for more corporations to head down the path to owning and accepting bitcoin, according to Wedbush. 
  • The firm says current bitcoin mania is not a “fad,” but the start of a new era of digital currency. 
  • PayPal, Square, Mastercard, and Visa could benefit from the crypto boom, Wedbush said.
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Tesla’s bitcoin bet could be a “game changer” for the digital currency and the broader adoption of blockchain technology over the coming years, according to Wedbush.

Given the still nascent and volatile nature around bitcoin, less than 5% of public companies will likely invest in bitcoin over the next twelve to eighteen months, but that could move “markedly higher” as more regulation and acceptance of the cryptocurrency takes hold in the future, a team of analysts said in a Monday note. 

Bitcoin reached a new high above $50,000 Tuesday morning, bringing its year-to-date gains to 74% in a sign of the growing acceptance of the digital currency.

According to Wedbush, the bitcoin mania is not simply a “fad,” but a sign of the broader digital currency and blockchain space growing.

Read more: GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target them – and the group has already nearly doubled over the past 3 months

“…We believe the trend of transactions, bitcoin investments, and blockchain driven initiatives could surge over the coming years as this bitcoin mania is not a fad in our opinion, but rather the start of a new age on the digital currency front,” said Wedbush. 

Also, Tesla’s announcement to begin accepting bitcoin as a form of payment could be a “paradigm changing move for the use of bitcoin from a transaction perspective.” 

This will bode well for payments companies PayPal and Square, said Wedbush. Both of those companies allow consumers to buy, hold, and sell cryptocurrencies which is resulting in higher frequency usage of their consumer-facing ecosystems. 

The crypto-boom could also be a “neutral to slight positive” for Visa and Mastercard, said Wedbush. Those two networks are gradually planning to accept central bank digital currencies and asset-backed currencies in payments transactions. Mastercard will start supporting certain cryptocurrencies directly on the network in 2021, which could open merchants up to new customers, the analysts added.

Also, Visa plans to launch a pilot crypto software program to help banks roll out bitcoin and cryptocurrency buying and trading services. 

Read more: UBS says bitcoin is a bubble and too volatile to diversify a portfolio, unlike gold – here’s why the bank says it could end up ‘worthless’

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