As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week's top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.
WINKLEVOSS TWINS SAY CRYPTO NEEDS RULES: Cryptocurrency exchange Gemini Trust, founded in 2014 by Cameron and Tyler Winklevoss, launched a new ad campaign contending the sector should protect investors, the Wall Street Journal reported Friday. The campaign, which suggests that Gemini already offers protections, delivers slogans like “The Revolution Needs Rules,” “Crypto Without Chaos” and “Money Has a Future.” Chris Roan, head of marketing, said, “We believe that investors coming into cryptocurrency deserve the exact same protections as investors in more traditional markets, adhering to the same standards, practices, regulations and compliance protocols.”
OVERSTOCK TO PAY OHIO TAXES IN BITCOIN: Overstock.com (OSTK) announced Thursday that it will become the first major U.S. company to pay a portion of its Ohio state business taxes in bitcoin using the state's new cryptocurrency taxpayer platform, OhioCrypto.com. Overstock plans to pay its commercial activity taxes in Ohio this February using the platform. Ohio is the first U.S. state to offer a cryptocurrency payment system for state business taxes.
NY LAUNCHES CRYPTO TASK FORCE: In a Facebook post on Wednesday, Assemblyman Clyde Vanel said New York Governor Andrew Cuomo signed a bill “to create a cryptocurrency task force to study how to properly regulate, define and use cryptocurrency.” He said cryptocurrency is more than a store of value as it is used as currency, utility tokens and also a way to record contracts and transactions. “Even more interestingly, the technology that undergirds cryptocurrency, blockchain technology, can be used in countless applications in the public and private sectors to improve transparency and efficiency. In fact, our government should consider blockchain uses with elections, the recordation of vital records and real estate transactions; to name a few,” Vanel said. “The task force of experts will help us strike the balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers.”
CRYPTO LENDERS THRIVE AMID BITCOIN BUST: Lenders focused on the cryptocurrency industry are doing well as a growing number of crypto ventures struggle for funding, reduce staff and shutter operations, Bloomberg reported Wednesday. Creditors said they’re seeing strong demand from borrowers who do not want to sell their digital coins at depressed prices, as well as from big investors looking to borrow coins for short selling. BlockFi said its revenue and customer base have increased tenfold since June, while Aave just opened a London office and is nearing profitability and Salt Lending is hiring additional employees as revenue rises.
IDEANOMICS ANNOUNCES PARTNER INTEREST IN FINTECH VILLAGE: On Monday, Ideanomics provided an update on Fintech Village, its planned global headquarters for innovation. Since announcing its intention to acquire the former UConn campus in July, Ideanomics has received regular partner inquiries and has been in discussions to bring up to ten leading fintech companies to the area with the intention to establish their innovation operations within a single, collaborative campus. Interest from the business and educational partners includes program collaboration, IP development, and joint ventures, and interest from fintech partners includes participation in real estate development, establishment of research and the potential for partnerships and joint ventures. Additionally, several of the opportunities allow for Ideanomics to become sales and licensing agents for partners who currently do not market within North America.
CRYPTO STOCK PLAYS: Cryptocurrency revenues have been pointed to as reasons to be bullish on Advanced Micro Devices (AMD) and Nvidia (NVDA) in select research. Overstock, DPW Holdings (DPW), Kodak (KODK), Ideanomics, Riot Blockchain (RIOT), Pareteum (TEUM) and Social Reality (SRAX) are other stocks that have been touted, or promoted themselves, as a way to play the crypto theme.
PRICE ACTION: As of time of writing, bitcoin dropped about 2% this week to $3,745 in U.S. dollars, according to TradeBlock.
Bitcoin
+ (+0.00%)
Bitcoin
+ (+0.00%)
OSTK
+
Ideanomics
+0.06 (+4.72%)
AMD
+0.805 (+4.72%)
Nvidia
+3.535 (+2.76%)
Ault Global Holdings
+0.022 (+18.88%)
Eastman Kodak
+0.02 (+0.80%)
Riot Platforms
+ (+0.00%)
Pareteum
+0.03 (+1.65%)
Srax
+ (+0.00%)