The Coinbase CEO is preparing for a deterioration in the crypto market in 2023. This is reported by Bloomberg, citing the financial director of the exchange, Alesia Haas.
According to her, the trading floor is developing plans for potential difficulties next year. On what exactly the difficulties were talked about, Haas did not specify. However, she said the market may not recover as quickly as many would like it to. So investors should prepare for long-term plans:
“I think a scenario of sustained low returns for a few years is very likely.”
Coinbase stocks are already feeling the possible deterioration. The exchange reported that Q3 commission revenue from trading collapsed 44% compared to Q2: from $655.2 million to $365.9 million, respectively. COIN shares fell nearly 5% to $60.8 amid the news.
Coinbase says the reason for the earnings collapse was bad macroeconomic conditions due to the U.S. Federal Reserve’s interest rate hike policy. To prepare for potential difficulties, Coinbase cut costs: its headcount became lower, and the trading floor focused on its core businesses.
The problems with Coinbase’s business model were previously acknowledged by its head, Brian Armstrong. He said the marketplace wants to change its main income, shifting the focus to subscription services, which already bring in about 18% of revenue. The exchange wants to raise that figure to 50%.
Recall that the U.S. exchange has a project called Coinbase One, which is in beta testing. Subscription fees will save users from trading commissions and also provide a separate line of technical support. The cost of a monthly subscription to beta testing is $30.
Earlier, we reported that Bitgo will release Dogecoin on Ethereum.
Decentraland has a rental feature. How to rent land in Decentraland?
The Decentraland metaverse has a LAND rental feature. The rental tool will play a crucial role for community space and digital real estate platforms. How to rent land in Decentraland?
Decentraland’s white paper states that the new rental system uses an Ethereum transaction and a combination of signatures stored on a server operated by the Decentraland Foundation. The smart lease contract relies heavily on offline signatures. Offline signatures allow LAND owners to list their LANDs on Decentraland rentals without paying transaction fees.
By signing a listing, a smart contract can then verify that the signer created the listing. This provides a secure and decentralized rental mechanism. LAND owners can already list their LANDs (lots or buildings) for rent on Decentraland Marketplace.
First, owners approve a smart contract to lease an LAND on their behalf. Once approved, they can set the rent price per day in MANA tokens. The price per day multiplied by the number of days the tenant wants to rent, is what the tenant has to pay upfront and in total for that rent.
After receiving the rent, owners can put the LAND back on the lease or ask for it back. To return the LAND, a transaction must be sent confirming the transfer of the operator’s rights from the tenant to the owner, including the gas fee. During the lease, the owners cannot sell the LAND until they get the property back.
Land in Decentraland costs an average of $3,000. Leases will cost between 14 and 3,000 MANA per day ($5.75 to $1,230 at the time of writing). Meanwhile, the most expensive plot of land in Decentraland has ever been priced at $3.5 million. The Fashion Street Estate plot sold at the end of November 2021 for 618,000 MANA.
We previously reported that a Chinese court ruled that NFT is virtual property.
The Wolf of Wall Street tells why not to invest in crypto
Former stockbroker, widely known as the “Wolf of Wall Street” Jordan Belfort spoke about why not to invest in crypto and shared his opinion on the current state of the cryptocurrency market
He said that right now he would not approach cryptocurrencies other than bitcoin (BTC) and Ethereum (ETH).
“Other than those two coins, Bitcoin and Etherium, I literally would not touch cryptocurrency with a 10-foot pole right now,” Belfort said.
That said, Belfort believes that these cryptocurrencies should make up a very small part of his overall investment portfolio. In other words, he would not recommend investing in the cryptocurrency market.
“The best investment is to buy the S&P 500, go into Vanguard, one of the other really ultra-cheap funds or ETFs, and put more money into it,” the former broker advised.
Why is investing in crypto a bad idea?
For those who have already bought other coins, Belfort cautioned against panic selling – “the worst time to sell is usually just because things are at rock bottom, people panic and sell at the worst possible time.” Thus, the decision to sell assets should be made based on the specifics of each coin.
“You have to go back to the time you bought it and say, ‘What were my reasons why I made that purchase?” – he believes.
Back in the summer, the former stockbroker retracted his 2017 anti-cryptocurrency views, admitting that his initial predictions of BTC falling to zero were wrong. Specifically, he advised bitcoin dealers to hold their positions for at least 36 months. He is confident that cryptocurrency has a decent chance of growing over that period. Projects like Polkadot are also worth considering.
At the same time, “Wolf of Wall Street” admitted that one should only invest in projects that have already proven their usefulness and viability. He even called for sending creators of “meme” cryptocurrencies to jail because such coins have no value.
Earlier we reported that the UK Treasury Department wants to restrict crypto business in the country.
Binance news today: exchange in talks to acquire Indonesian crypto exchange – media
Major cryptocurrency exchange Binance is in talks to buy Indonesian cryptocurrency exchange Tokocrypto. According to a TechinAsia source, Tokocrypto head Pan Xue Kai will resign after the deal.
In a reaction to the rumored acquisition, Tokocrypto Vice President of Corporate Communications Rieku Handayani said exchange officials could not comment on rumors or speculation.
“Binance has been one of Tokocrypto’s investors since 2020 to co-develop the company and help build the crypto asset industry in Indonesia,” he said.
Tokocrypto focuses only on developing crypto-assets, doing everything to encourage business and industry growth.
“Tokocrypto is focused on building a sustainable business and actively continuing to grow the crypto-asset industry, which has grown significantly. The company continues to encourage healthy business and industry growth while prioritizing customer education and protection,” he added.
Last week, Binance had already bought Sakura Exchange BitCoin (SEBC), a trading platform registered in Japan, to expand its operations in that Asian country. Thanks to the deal, the company will be able to operate in the Japanese market as an entity regulated by the Japan Financial Services Agency (JFSA). This is another attempt by Binance to return to the country of the rising sun after a failed attempt to do so four years ago.
The company is also interested in establishing relations with Georgia. Binance CEO Changpeng Zhao and Georgian Prime Minister Irakli Garibashvili discussed the problems of regulation of crypto exchanges. Among the plans outlined at the meeting were are developing Georgia as a center of modern financial technology and the expansion of Binance.
Earlier we reported that hackers in North Korea are stealing cryptocurrency with the help of trading bots.
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