2023-11-13 08:09

NEW YORK - FriendTech, a novel web3 social media application operating on Coinbase (NASDAQ:COIN)'s Base blockchain, has experienced a significant drop in user activity, with a 95% fall from its peak transaction volume. The app, which allows users to trade shares of their friends using ether, initially saw a flurry of interest following its launch in August. The platform introduced a unique concept where users could own their channels through keys that they purchased. These keys not only granted access to the channels but also enabled owners to collect fees, creating a revenue stream for both the app and the channel owner. This innovative approach branded FriendTech as a "marketplace for your friends" and quickly garnered attention in the crypto community. Within just one week of its launch, FriendTech recorded $35 million in shares traded and attracted 110,000 unique addresses within its first month. However, recent data from Dune Analytics indicates that daily transactions have plummeted from a high of 39,000 to significantly lower levels. Despite the rapid decline in transactions, the platform had hundreds of thousands of active users. Nevertheless, it faced criticism from figures like Beanie, who described it as an "elaborate ponzi," referring to its use of a bonding curve on X.com. In contrast to FriendTech's challenges, Tom Duff Gordon, Coinbase's Vice President, highlighted the broader potential of the Base blockchain during an appearance on Yahoo Finance UK's The Crypto Mile. He pointed out other applications built on Base, such as a BlackRock-linked tokenized US bond ETF. Gordon emphasized that fractionalizing tokenized financial products could democratize access to financial markets and enhance liquidity and pricing. This is particularly pertinent given the increasing scrutiny and regulatory pressure on crypto assets in the United States. Base was launched in August as an Ethereum layer 2 solution aimed at facilitating faster transactions. It has contributed to Coinbase's diverse revenue streams which include transaction fees, custodial fees, blockchain rewards, and potential investments in anti-aging technology. Despite FriendTech's recent downturn, Base continues to support various applications that could shape the future landscape of decentralized finance and digital assets. InvestingPro Insights In light of the recent developments surrounding FriendTech and Coinbase's Base blockchain, InvestingPro offers some key insights. According to InvestingPro's real-time data, Coinbase has a market cap of $22.23 billion and a P/E ratio of -29.34, reflecting its current unprofitability. Moreover, the adjusted P/E ratio for the last twelve months as of Q3 2023 stands at -18.51. InvestingPro Tips highlight that while Coinbase's stock price movements have been quite volatile, the company has seen a significant return over the last week. Over the last six months, the company has experienced a large price uptick, further emphasizing its strong return. Analysts, however, do not anticipate the company to be profitable this year. In terms of additional insights available on InvestingPro, there are 6 more tips related to Coinbase's financial performance and market trends, providing a comprehensive view for potential investors and market enthusiasts. While the recent downturn in FriendTech's transactions is a concern, Coinbase's broader potential, as highlighted by its Vice President, Tom Duff Gordon, suggests promising prospects for the company. The InvestingPro insights underline the importance of staying informed about the latest market trends and making informed investment decisions. https://www.investing.com/news/cryptocurrency-news/friendtech-trading-activity-plummets-on-coinbases-base-blockchain-after-initial-surge-93CH-3231823

2023-11-13 08:04

Copyrighted Image by: Reuters Binance, the world's leading cryptocurrency exchange by volume, has seen a notable decline in its market dominance over the past year, amid growing competition and regulatory challenges. From October 17, 2022, to the same date in 2023, Binance's share of the global crypto exchange market dropped from 54.6% to approximately 45%, with particular setbacks in trading volume and spot market presence. This downtrend has been influenced by several factors, including a lawsuit initiated by the U.S. Securities and Exchange Commission (SEC) in June 2023, alleging mismanagement of client funds and listing of unregistered securities. The exchange's strategy of listing new coins, which often leads to a decrease in their value post-listing, has also contributed to its waning dominance. Despite these hurdles, Binance continues to hold the largest crypto asset value among centralized exchanges (CEXs), with a consistent 45% throughout the year. However, when looking at deposit addresses opened at each exchange, Binance shares an equal footing with Coinbase (NASDAQ:COIN) at around 30% each. In contrast to Binance's declining fortunes, other exchanges like OKX have capitalized on the shifting landscape. OKX's volume share rose significantly from 10.5% to 16.1%, marking its position as a strong competitor within the sector. The spot market tells a similar story, with Binance's share plummeting from 62% to just 40%. Meanwhile, Upbit made remarkable gains, increasing its share from 5% to 15%. In the derivatives market, Binance experienced a smaller dip from 50% to around 45%. Binance's challenges are set against a backdrop of increased competition from various exchanges and changing market dynamics. While Binance remains a significant player with about 40% of active addresses, it is clear that the crypto exchange market is becoming more contested as rivals like OKX continue to grow their presence. https://www.investing.com/news/cryptocurrency-news/binances-market-dominance-falls-as-competitors-gain-ground-93CH-3231822

2023-11-13 07:51

Copyrighted Image by: Reuters NEW YORK - The Bitcoin mining industry has reached a new annual revenue peak, according to data from Blockchain.com. On November 9, 2023, miners earned $42,386,514.038 in a single day as the price of Bitcoin soared above $37,000. This surge is linked to the market's anticipation of the U.S. Securities and Exchange Commission (SEC) potentially approving a spot Bitcoin ETF, a move that investors have long awaited. Lane Kasselman, a notable figure in the cryptocurrency space, pointed to increased network congestion and higher transaction fees as key factors contributing to this record revenue figure. This congestion often occurs when there is heightened activity on the Bitcoin network, leading to more competition among users to have their transactions processed, which in turn drives up the fees they are willing to pay. This new peak surpasses the previous high seen in May 2023, when Bitcoin mining revenue hit $41,744,197.067. The demand for Ordinals, which are similar to non-fungible tokens (NFTs), was cited as the driving force behind the revenue spike at that time. The prospect of simultaneous approval of up to 12 Bitcoin ETFs has added to the optimistic sentiment among investors and miners alike. Such ETFs would provide a regulated and more accessible way for retail and institutional investors to gain exposure to Bitcoin without directly buying or holding the cryptocurrency. This development is particularly significant as it reflects the growing mainstream acceptance of Bitcoin and could lead to increased investment and usage. However, the SEC's decision on the spot Bitcoin ETFs remains pending, and its impact on both the price of Bitcoin and mining revenues will be closely watched by stakeholders in the cryptocurrency market. https://www.investing.com/news/cryptocurrency-news/bitcoin-mining-revenue-hits-new-annual-high-amid-etf-anticipation-93CH-3231817

2023-11-13 05:47

Former FTX co-founder Sam Bankman-Fried has been convicted on seven counts of fraud and money laundering, marking a significant turn in the cryptocurrency industry's quest for legitimacy. The conviction, which took place on November 2, 2023, has left investors like Alfred Lin of Sequoia Capital expressing feelings of being deliberately misled. The downfall of Bankman-Fried is a sharp contrast to his once-celebrated status in the finance world. Since 2009, despite the crypto industry's challenges with illicit trading and business failures, figures like Bankman-Fried were seen as potential harbingers of legitimacy. His ventures attracted heavyweight backers such as Tiger Global, Singapore’s Temasek, and the Ontario Teachers’ Pension Plan. The collapse of FTX in 2022 was a significant blow to the industry, leading to a crisis that saw major cryptocurrencies like bitcoin and ether lose over half their value. This event was part of a series of failures which included Terraform Labs and Three Arrows Capital. In response to these upheavals, 2023 saw an increase in oversight from lawmakers and regulators aiming to stabilize the sector. With Bankman-Fried now facing a possible lengthy jail term, discussions are underway about what the future holds for cryptocurrency. The industry might continue striving for acceptance within mainstream finance or could revert to its earlier image as a niche market. FTX had previously secured high-profile endorsements, including those from Major League Baseball and actor Larry David. The case against Bankman-Fried has drawn comments from various legal and financial experts, including US attorney Damian Williams and John Reed Stark of the SEC. Additionally, Charley Cooper, former CFTC chief, and Charles Storry from Phuture have weighed in on the implications for the crypto industry. The broader crypto landscape continues to evolve with mixed developments. While Prime Minister Philip Davis had supported FTX before its downfall, major exchanges like Coinbase (NASDAQ:COIN) and Binance are now facing legal challenges from the SEC and CFTC. Meanwhile, PayPal (NASDAQ:PYPL) has launched a US dollar-pegged crypto token, and BlackRock (NYSE:BLK) is seeking SEC approval for a bitcoin ETF—a type of product that SEC chair Gary Gensler has thus far resisted approving. https://www.investing.com/news/cryptocurrency-news/sam-bankmanfried-convicted-of-fraud-amid-crypto-industry-turmoil-93CH-3231692

2023-11-13 05:27

Copyrighted Image by: Reuters. The British pound gained ground against the US dollar on Friday, buoyed by stronger-than-anticipated UK Gross Domestic Product (GDP) figures and a softer dollar. The GBP/USD pair maintained its upward trajectory for the second day in a row, trading around 1.2230. The UK's GDP for the third quarter remained steady, defying market expectations of a slight contraction of 0.1%. Instead, the economy showed no change from the previous quarter, with year-on-year growth at 0.6%, which was also higher than the forecasted 0.5%. These positive developments came despite concerns over the UK's economic outlook, as signs point towards a challenging period of stagflation, characterized by high inflation coupled with rising unemployment levels. In contrast, sentiment in the US appeared more cautious following Federal Reserve Chair Jerome Powell's remarks on Thursday. Powell expressed doubts about the effectiveness of current policies in achieving the central bank's 2% inflation target, indicating a hawkish stance that suggests further interest rate hikes could be on the horizon. Adding to the cautious mood, preliminary data released on Friday showed a decline in US consumer sentiment. The University of Michigan's Consumer Sentiment Index dropped from 63.8 to 60.4 in November, reflecting increased consumer concerns. Looking ahead to next week, significant economic data releases are expected to influence currency markets. Traders are particularly focused on upcoming UK employment and inflation reports due Tuesday, as well as the US Consumer Price Index (CPI), which will provide fresh insights into inflationary trends and potentially guide central bank policy decisions. The past week saw volatility in the GBP/USD exchange rate amid mixed signals from central banks and economic data releases. The Bank of England hinted at possible interest rate hikes through hawkish comments, while concerns over the UK economy's health led to a slight retreat in Sterling, closing the week at $1.2211. In addition to domestic factors, global events also played a role in currency fluctuations. Early last week, China reported an unexpected narrowing of its trade surplus, triggering a flight to safety that initially bolstered the US dollar. However, subdued comments from the Federal Reserve and weaker-than-expected US employment figures later softened the dollar's strength. Market participants are now bracing for next week's key economic indicators from both sides of the Atlantic. Inflation figures will be closely watched, with US annual core inflation expected to hold at 4.1%, potentially reinforcing bets on Federal Reserve rate hikes and supporting the dollar. On the other hand, a forecasted decrease in UK core inflation from 6.1% to 5.8% could lessen expectations for Bank of England rate increases and weigh on Sterling. The UK's forthcoming employment data will also be scrutinized for its impact on currency volatility. https://www.investing.com/news/forex-news/sterling-advances-against-dollar-after-uk-gdp-data-beats-expectations-93CH-3231680

2023-11-13 05:13

Copyrighted Image by: Reuters In the latest trading session, India's precious metal futures market witnessed a slight downturn. The Multi Commodity Exchange (MCX) of India reported a dip in gold futures due for delivery on December 5, which decreased by ₹87 or 0.15%, to close at ₹59,665 per 10 grams. The trading day saw gold prices fluctuating between ₹59,652 and ₹59,699. Alongside gold, silver futures also experienced a decline. The December 5 contracts fell by ₹565 or 0.81%, ending the day at ₹69,467 per kilogram. This move in the precious metals market comes amidst a period of stability in global markets, where COMEX gold prices remained steady at $1938.8 per ounce. In the retail market, Kolkata reported the highest spot gold prices across major Indian cities, with 24k gold reaching ₹62,070 for 10 grams. https://www.investing.com/news/commodities-news/gold-futures-dip-slightly-in-indias-mcx-market-silver-also-falls-93CH-3231655