Blythe Masters Stepping Down and the End of a Blockchain Era; Crypto Pump-and-Dumps Dec 19, 2018
Bitmain – What’s Happening to the Billion Dollar IPO? Thom Thompson, John Lothian News
For the first three quarters of 2018, investors and analysts speculated about when, then if, Bitmain would go public. During a pre-IPO private fund raising, reports leaked out that Bitmain was valuing itself at $15 billion or maybe even $18 billion. During the third quarter bitcoin, which drives industry development, traded at around $6,500, shooting up briefly to the $8,000 range.
Those summer 2018 bitcoin prices were $3,000 higher than current ones. Is it any surprise that Bitmain’s IPO may not launch after all?
According to the recent unconfirmed reports, the Stock Exchange of Hong Kong has chilled to the idea of allowing any bitcoin mining equipment firm to list on its exchange given their business models in light of current market conditions. (The SEHK says these reports are just rumors.
) Earlier this year media stories had already claimed that Bitmain’s IPO was doomed because, they said, a string of major potential investors turned down the chance to buy into pre-IPO Bitmain. Those reports were later confirmed by a number of potential institutional investors.
To read the rest of this commentary, go here
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Hits & Takes JLN Staff
ICE Futures U.S.
has two days of consecutive records in MSCI on December 17. There were 1,234,313 MSCI contracts traded across the complex and 946,981 MSCI Emerging Market contracts traded.~ JJL
Nasdaq proposed a rule to increase the entry fees for companies listing shares on the exchange and to increase the number of fee tiers from four to six.~ SD
Kansas State University has a “ First Look at the Agricultural Improvement Act of 2018 ” aka the 2018 Farm Bill.
~ SR
TD Ameritrade is among the firms that have stopped advertising on FOX’s Tucker Carlson program after the host made disparaging remarks about immigrants.
A total of 17 firms were reported to have dropped Carlson’s show according to this NY Times report .~ JJL
There is a 71.5 percent chance that the Fed hikes rates today according to CME’s FedWatch Tool.
That is down from the beginning of the month when odds were as high as 84.4 that Powell and crew would kick it up a notch.~ SD
Bloomberg is reporting that John Henry is looking at a Nascar investment . Speed driving and speed trading?
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Greenspan tells stock investors: ‘Run for cover’ Rachel Koning Beals – MarketWatchAlan Greenspan, the former Federal Reserve chairman who famously sent global stocks reeling when he warned of “irrational exuberance” at a dinner speech more than two decades ago, is nervous all over again.
All is well. Stay calm.
All is well.~ JJL
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What Exactly Is a Bushel? The Question Turns People Into Basket Cases; Prices of agricultural commodities are quoted that way, even though many have never actually come across the baskets; ‘kind of an abstract amount’ Lucy Craymer – WSJTrade tensions between the U.S. and China this year have caused gyrations in soybean prices, which recently climbed above $9 a bushel.
They also have people buried in soybean math.
A bushel is something some put a light under.~ JJL
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Tuesday’s Top Three Our top stories of the day on Tuesday were led by Crain’s Chicago Business’ piece Citadel’s Ken Griffin shares his philanthropic philosophy . He learned the gift of giving from his grandparents. Second went to Bloomberg’s Pros Ditching Bitcoin Market as Interest Ebbs, JPMorgan Says . Third was a top three piece from the past three days about Pat Arbor from the Chicago Sun Times, ‘I’m kind of doomed,’ says ex-CBOT chairman, jailed for months in divorce fight
++++ CryptoMarketsWiki , our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.
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Blythe Masters and the End of a Blockchain Era; The former banker is stepping down as a bubble deflates.
Lionel Laurent – BloombergBlythe Masters is stepping down as CEO of Digital Asset Holdings, the blockchain startup she joined to great fanfare in 2015.
The former JPMorganChase & Co. executive, credited with inventing the credit-default swap, says she is making the decision for personal reasons. But in business terms, her timing is good, too: The Bitcoin bubble of 2017 has burst, and so has that of blockchain.
Crypto Market Rife With Pump-and-Dump Schemes, Study Shows Gregor Stuart Hunter – BloombergAlmost 5,000 identified on Telegram and Discord messenger apps; Fraud proliferated in regulatory vacuum, research paper findsScammers have been successfully manipulating the price of digital assets including Bitcoin so they can dump their holdings onto unsuspecting traders at a higher price, according to a new academic paper mapping out the extent of market abuse in cryptocurrencies.
Stan Druckenmiller Says Algos Are Robbing Markets of Trade Signals Erik Schatzker and Katherine Burton – BloombergQuant funds can obscure what’s behind price moves, he says; Volatility is no help because there’s ‘no real trend’Billionaire Stan Druckenmiller is glad he’s no longer in the hedge fund business now that algorithmic and quantitative trading have taken over markets.
Mnuchin Blames Volcker Rule, High-Speed Trading for Volatility Saleha Mohsin, Jesse Hamilton, and Craig Torres – Bloomberg U.S. Treasury Secretary Steven Mnuchin blamed volatility in equity markets partly on high-speed trading and the effect of the Volcker Rule, adding that he planned to conduct an inter-agency review of market structure.
**** Or as a Reuters column phrased it “ Mnuchin pins market volatility on wrong president ”
EU says bulk of UK financial sector would be cut off by no-deal Brexit Huw Jones – ReutersMost banking, insurance and other financial firms in Britain would be cut off from the European Union if there is a no-deal Brexit, the bloc’s executive body said on Wednesday.
Citi faces up to $180m loss on Asian fund’s currencies trade Laura Noonan – Financial TimesCitigroup could lose as much as $180m on an Asian hedge fund’s ill-fated currencies trade, a person familiar with the situation said on Tuesday.Citi’s potential losses on the Asian trade, which are still dependent on negotiations with the hedge fund and the cost of unwinding the trade, were first reported by Bloomberg. Citi declined to comment.
****As a result, Citi reorganizes prime brokerage unit (via Reuters).
~ SD
Crypto miners fight for survival as market turmoil continues; Falling prices and rising costs mean finding efficiencies is key to riding out the storm Hannah Murphy – FTAmbitious plans for Britain’s biggest bitcoin mine have come to an abrupt halt. Bladetech, a team of entrepreneurs who have worked on specialist IT projects for the likes of Nato and BAE Systems, announced in March that they were building an industrial facility for the creation of the then-pricey digital currency.
FT Person of the Year: George Soros; The philanthropist has become a standard bearer for liberal democracy, an idea under siege from populists Roula Khalaf – FTFor a man facing daily attacks for his activism and liberal vision of the world, George Soros was in a curiously buoyant mood on a sunswept afternoon in Marrakesh. He had just visited South Africa, home to his first philanthropic foray in the late 1970s, when he funded black students under apartheid. This time he learnt that Soros-backed investigative media and civil society groups had helped thwart an allegedly corrupt nuclear power plant contract with Russia.
SEC Solicits Public Comment on Earnings Releases and Quarterly Reports SECThe Securities and Exchange Commission today published a request for comment soliciting input on the nature, content, and timing of earnings releases and quarterly reports made by reporting companies.
Change Is Afoot in the Money Markets – Or Not George Bollenbacher – TABB ForumIt’s no secret that everything is changing in the world of short-term rates.
IBOR replacements, Fed tightening, the impact of Brexit, repo reporting requirements – the news is full of stories. But there are a couple of developments that haven’t gotten much coverage, and they may be the most interesting of all.
Barclays hit with $15m fine over attempts to unmask whistleblower Kalyeena Makortoff – The GuardianBarclays has been slapped with a $15m (£12m) fine by a New York regulator over attempts by chief executive Jes Staley and senior management to unmask a whistleblower.
Companies Must Disclose Executive Hedging Strategies; SEC approves rule aimed at shedding light on hedges against a company’s poor performance Gabriel T.
Rubin – WSJCompanies will have to disclose whether executives and directors can hedge against declines in their companies’ stock, following a vote by U.S. securities regulators on Tuesday. /on.wsj.com/2EtiSmO
****Press release from SEC here.
Cut Carbon Through Innovation, Not Regulation; People across the world are rejecting the idea that carbon taxes are the answer to lowering emissions. John Barrasso – NY TimesThe dome being hoisted onto the reactor building during construction of a nuclear power plant in Fangcheng, China. The reactor will be put into service in 2022.CreditCreditVCG, via Getty ImagesLeaders from nearly 200 countries met in Katowice, Poland, last week and agreed to rules to carry out the Paris climate accord. Now that the 22,000 delegates have returned home, there are three truths they need to recognize to make actual progress in the hard work of lowering carbon dioxide emissions across the globe.
SFO plans to flip insiders to speed up criminal probes; UK fraud agency wants to make greater use of US-style tactics after case failures Barney Thompson – FTThe head of the UK Serious Fraud Office says she intends to make greater use of the US-style tactic of persuading insiders to co-operate with investigators to speed up criminal probes following the delay or failure of a number of high-profile cases.
How the Financial Crisis Created the Fracking Revolution; Funding hydraulic fracturing made much more sense once the Fed cut interest rates to zero. Barry Ritholtz – BloombergYou can thank the financial crisis and the Federal Reserve for the fracking revolution. That’s the connection made by this week’s guest on Masters in Business, journalist Bethany McLean, author of the recently published book “Saudi America: The Truth About Fracking and How It’s Changing the World.
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LSEG Technology successfully implements Settlement and Depository Solution for Singapore Exchange (SGX) London Stock Exchange GroupLSEG Technology has successfully implemented Settlement and Central Securities Depository functionality for Singapore Exchange (SGX). In live operation from 10 December 2018, this was a whole market implementation, involving brokers, custodian banks, settlement banks, registrars and retail investors.
NSE gets Sebi’s nod to launch weekly options on Nifty 50 index PTILeading bourse NSE Tuesday said it has received markets regulator Sebi’s approval to launch weekly options on Nifty 50 index, a move that will provide hedging tool to market participants to manage the portfolio risk more effectively.
Spain’s BME clears first BrokerTec repos Published Pablo Mayo Cerqueiro – Global Investor GroupBME signed an agreement in July to clear repo trades for BrokerTec clients
Nasdaq Dubai to launch futures trading from mid-January ReutersNasdaq Dubai will launch futures trading on the MSCI United Arab Emirates equity index from mid-January, providing investors a new avenue to gain exposure to companies in the United Arab Emirates (UAE).
BSE gets Sebi’s approval to increase trading hours in commodity derivatives PTILeading stock exchange BSE Tuesday said it has received Sebi’s permission to increase trading hours by an hour in commodity derivatives segment.
/goo.gl/6xabkT Fintech
Tech Unicorns Are Going Public at Near-Record Pace; In 2018, 38 companies valued at $1 billion or more at the time of their IPO listed shares in the U.S. Corrie Driebusch – WSJThe reign of the unicorn IPO has commenced.
Investors gripe that highly valued tech companies are eschewing the public markets and opting to remain private for longer. But in 2018, to little fanfare, 38 tech and internet companies valued at $1 billion or more at the time of their IPO listed shares in the U.S., the most to do so since the height of the dot-com boom in 2000, according to Dealogic.
SIX in Cloud Deal FinNewsSwiss stock exchange operator SIX wants to offer safe cloud services in Switzerland. It has teamed up with a tech company that has its roots in real estate. /goo.
gl/E9GGzi
LexisNexis Risk Solutions Warns Against UK ‘Complacency’ In Fight Against Financial Crime Mondovisione LexisNexis Risk Solutions, the global information solutions provider, warns that the UK is at risk of becoming complacent in its fight against money laundering. Whilst significant efforts are being made across the financial and professional services sectors, financial criminals remain one step ahead. Huge investments are being made by business to fight these crimes, but London still represents the money laundering capital of the world. Collectively, the country needs to do more to detect and prevent it. /goo.
gl/fTVQ5b Cryptocurrencies
Blythe Masters steps down as CEO of Digital Asset; After more than three and a half years, blockchain pioneer Blythe Masters to leave her role as CEO of Digital Asset. Jonathan Watkins -The TradeFinancial markets technology pioneer Blythe Masters has stepped down as CEO of Digital Asset for personal reasons, Global Custodian understands.
Hamilton Trades Derivatives for Digital Currency Jamie Hyman – WatersTechnologySteve Hamilton, the former COO of the London Stock Exchange’s interest rate derivatives market, CurveGlobal, has joined Archax as head of regulation. The start-up plans to launch a digital securities exchange in mid-2019.
****Press release from Archax here.
Hedge funds to start-ups, industry feels crypto pain Seema Mody – CNBCWhat a difference one year can make.
This time last year, bitcoin was cruising to $20,000, two trading exchanges launched bitcoin futures contracts, and a flurry of professionals were leaving big tech and traditional financial firms for the promise of new opportunities in the fast-growing cryptocurrency industry.
eToro Survey Finds Huge Demand for Cryptocurrency Education David Kimberly – Finance MagnatesThe social trading firm found that a lack of knowledge was preventing investors from trading in digital assets. Social trading firm eToro released the results of a survey covering a number of different questions surrounding cryptocurrency this Tuesday.
The survey, which was carried out by eToro’s US division, suggests that there is a shortage of decent cryptocurrency educational materials on offer.
The Trader Who Nailed the Bitcoin Top Just Covered His Short Vildana Hajric – BloombergJust as the euphoria surrounding Bitcoin was peaking last December, Mark Dow decided to short the leading digital currency. Almost a year to the day, and after a more than 80 percent decline from its record high price, Dow has closed out the trade. “I’m done. I don’t want to try to ride this thing to zero,” Dow said in a phone interview Tuesday. “I don’t want to try to squeeze more out of the lemon. I don’t want to think about it.
It seemed like the right time.”
Waves Platform Raises $120 Million for Private Blockchain Ilya Khrennikov – BloombergRussian engineer Ivanov aims to compete with IBM’s Hyperledger; Large firms mistrust security of open blockchains: IvanovWaves Platform, a public blockchain network that has helped digital startups create tokens, said it raised $120 million for itself to roll out a private version of its Vostok system for corporations and governments.
The Ethereum ICO: Where did all the tokens go? Amy Castor – The Block CryptoWas ether a security at some point? The first place legal experts should look into is the project’s crowdsale; More than 40% of the ether sold went to the top 100 purchasers. And the three largest purchasers went home with roughly 1 million ether each; The largest beneficiaries of the contributor allotment were the project’s eight co-founders, but the “reward” distribution was egalitarian, according to Ethereum’ creator Vitalik Buterin; Until a judge steps in, the issue will continue to be open to debateOne nagging question hanging over the crypto space is whether ether, the native token of Ethereum and the third largest cryptocurrency by market cap isóor wasóa security.
The Crypto Space Is A Void Yaya Fanusie – ForbesBlockchain hype is dead. And may it rest in peace. For the past few years, cryptocurrencies and blockchain technologyówhich many enthusiasts refer to affectionately and imprecisely as “the crypto space”óhave been touted as imminent economic disruptors of the 21st century. Yet enthusiasm about the technology has often blurred the line between what is happening with crypto, what is hoped for, and what is hype.
Michael Novogratz Predicts Bitcoin Declines Won’t Get (Too Much) Worse Annie Massa and Erik Schatzker – BloombergSees digital coin price between $3,000 and $6,000 in near term; “Cool” macro era looks more exciting than crypto, he saysMichael Novogratz doesn’t expect Bitcoin’s price declines to deepen much more, despite a dismal run for virtual currency investors in 2018.
Bitcoin SV’s Nightmare Could Be Coming True Billy Bambrough – ForbesBitcoin SV, which last month split from bitcoin cash after a so-called hash war as two developer camps fought for control of the bitcoin fork, is in danger of falling out of the top ten biggest cryptocurrencies by market capitalization as rivals including tron, cardano, IOTA, and monero make gains.
Real Talk with JJ Kinahan and Thomas Chippas TD Ameritrade Network.
