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Markets

Coinbase makes debut on Nasdaq as Bitcoin, Ethereum XRP post all-time highs

Crypto market pundits believe that the scheduled listing of Coinbase has most likely triggered Bitcoin, Ethereum, and XRP in breaking new all-time highs.

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The crypto market continued to climb into new territory on Wednesday morning surpassing $2.23 trillion on the day crypto exchange giant Coinbase is scheduled to make its debut on the Nasdaq, trading under a sticker “COIN.”

Crypto market pundits believe that the scheduled listing of Coinbase has most likely triggered Bitcoin, Ethereum, and XRP in breaking new all-time highs.

At its current price level, the flagship crypto has gained more than 125% since 2021 when it was trading below $29,000.

READ: Coinbase executes over $1 billion Crypto trades for world’s biggest clients

At the time of writing this report, Bitcoin, Ethereum and XRP traded above $64,000, $2350, and $1.93 on the FTX exchange amid strong buying pressures.

Coinbase is the world’s most valuable crypto exchange, with a market valuation of about $90 billion. The crypto exchange currently has about 56 million verified retail customers, capitalizing on the demand for an easy-to-use Crypto storage solution for institutional and retail clients.

In addition, investors seem to be keying in on the pioneer crypto exchange’s unique advantage where it acts as a broker and holds assets in custody for large clients far more than any known crypto exchange in the world, with assets under management estimated at roughly $ 225 billion.

READ: Meet the billionaire twins who bought $10m worth of Bitcoin when it still sold for $8

READ: Bitcoin ETF in North America has reached $1 billion in assets

Coinbase major customers include Third Point, a $17 billion hedge fund and MicroStrategy, which has over 91,000 Bitcoins.

That being said, a hovering dark cloud of crypto regulation still remains a risk for Coinbase, as such might deter its future upsides. It has also its own share of regulatory issues.

Just recently it had to pay $6.5 million to settle charges that it reported untrue trading data and a former staff engaged in manipulative wash trading often prevalent on many other crypto exchanges.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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    Cryptocurrency

    Coin of the week: Ever heard of EOS?

    EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion.

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    EOS was created and designed to allow developers to build decentralized apps (DApps). DApps are any computer applications whose operation is maintained by a distributed network of computer nodes, as opposed to a single server.

    The EOS platform was developed by the company Block.one, to make it as straightforward as possible for programmers to embrace blockchain technology and ensure that the network is easier to use than rivals. It also aims to deliver greater levels of scalability than other blockchains which can only do a dozen transactions per second.

    EOS was created by Daniel Larimer and Brendan Blumer. Brenden Blumer is an entrepreneur, who was one of the co-founders of Okay.com, a digitally focused real estate agency in Hong Kong while Daniel Larimer is a software programmer who has also started a series of crypto ventures such as the crypto trading platform BitShares and the Steem blockchain. They are both members of Block.one’s executive team, with Brendan Blumer as CEO and Daniel Larimer as CTO.

    Why Invest in EOS?

    Block.one stated that EOS can accommodate the demands of thousands of DApps, even if they were being used by a high number of people. Parallel execution, as well as a modular approach, are said to drive this efficiency.

    EOS represents a truly democratic system that takes into account the will of the people, in this case, its token holders, as they can vote for block producers as well as other matters such as protocol upgrades.

    Network Security

    EOS, like many other coins, uses a delegated proof-of-stake consensus mechanism. This concept was conceived by Daniel Larimer and aims to solve some of the flaws that are seen in conventional PoW (Proof-of-Work) and PoS (Proof-of-Stake) systems.

    As stated earlier, those who own EOS tokens can vote for representatives who will be responsible for validating its transactions. One of the advantages is that it helps eliminate consolidation, where smaller miners are pushed out by those who have greater levels of computing power and resources.

    Price Analysis

    EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion. EOS has gained approximately 466% return comparing its 52 weeks low to its current price today. It is currently down 49.71% from its all-time high of $22.89 that was last traded on the 29th of April, 2018.

    Recently, after the Biden administration’s proposed tax hike, the coin dropped from its previous 2021 peek of $8.80 to a 0.236 Fibonacci retracement zone of $4.74, creating a new higher-low that indicates a bull market. No surprise that the market broke its previous 2021 high to create a new high of $13.18 on the 6th of May, 2021, following news of the coin proposing to increase its staking rewards. It is believed that this running will lead the coin to break its previous all-time high of 2018.

    Although it is not advisable to buy coins at peak prices, recent news as earlier mentioned, suggests that an increase in demand for the coin is imminent. Block.one mentioned that the protocol needs to increase the rate of inflation from its current pace of 1% to a rate between 1.2% and 3.8% intended to increase financial incentives for voters and block producers. While token holders still need to settle on what exact size the inflation rate will increase to, the possibility of higher yields for community participation has brought demand to the coin.

    A second major development for the protocol is the EOS PowerUp model, which intends to allow users to pay a fee to power up their account for 24-hours to transact on the network as opposed to paying a transaction fee for every transaction. Block.one mentions that the PowerUP model offers EOS token holders another way to earn a yield by depositing unused EOS tokens to receive a percentage of all the ‘power-up’ fees that are generated by the network. This has become an increasingly attractive option as investors are searching for ways to avoid the high gas fees (transaction fees) and network congestion on the Ethereum (ETH) network.

    With the overall cryptocurrency market bullish and projects like Litecoin (LTC) and Ethereum Classic (ETC) reaching new highs, EOS is a blockchain project that could benefit investors as the cryptocurrency bull market continues.

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    Commodities

    Lagos Commodities Exchange to start gold trading

    The move is in support of the Federal Government’s effort to reduce dependence on oil, diversify the economy and boost the country’s foreign exchange earnings.

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    Nigeria's first gold refinery to provide over 500,000 jobs

    The Lagos Commodities and Futures Exchange has concluded plans to commence trading of gold with the admission of Dukia Gold’s diversified financial instruments, backed by gold as the underlying asset.

    The move is in support of the Federal Government’s effort to reduce dependence on oil, diversify the economy and boost the country’s foreign exchange earnings.

    Dukia Gold said the financial instruments, which would be in form of exchange-traded notes, commercial papers and other gold-backed securities would enable the company to deepen the commodities market in Nigeria, increase capacity, generate foreign exchange for the government to diversify external reserves and create jobs across the metal production value chain.

    While making the disclosure, during a Pre-Listing media interactive session in Lagos on Thursday, the Chairman of Dukia Gold, Mr Tunde Fagbemi, applauded the Ministry of Mines and Steel Development and the Security and Exchange Commission (SEC) for supporting trading of gold in Nigeria.

    What the Chairman of Dukia Gold is saying

    He said, “We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange. The listing shall enable us to facilitate our infrastructure development, expand capacity and create fungible products.

    This has the potential to shore up Nigeria’s foreign reserve and create an alternative window for the preservation of pension funds. Gold-backed security is a hedge against inflation and convenient preservation of capital.”

    Fagbemi pointed out that the company has refinery services to smelt metals with the capacity to meet local and international demand.

    Going further, he said, “As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies. Our refinery will also have multiplier effects on the development of rural areas anywhere it is located.’’

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    What you should know

    It can be recalled that the Federal Government, in June 2020, commissioned the operations of Dukia Gold and Precious Metals Project (DGPMP). The project is expected to enable Nigeria to mine its gold reserves properly, trade responsibly and refine locally.

    The Vice President, Prof. Yemi Osinbajo, while performing the virtual commissioning of the project, said Nigeria has potential reserves of 200 million ounces of gold reserves.

    Osinbajo said that he believed that the Dukia gold project would encourage the emergence of smaller-scale mining companies which, for the first time, would have a transparent and welcoming market for their mined gold and precious metals.

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