Coinbase Woes Continue To Mount

Investors were excited when Coinbase ($COIN) first launched into the public realm with its IPO in April 2021. The initial trading volume was some of the largest organic volume (volume traded by individuals, not institutions) ever recorded. Analysts and pundits around the world were on the hype train. 

Fast forward to today, and those same analysts and pundits (looking at you, Cramer) have left the bandwagon and are now ardent opponents or have just left Coinbase out to dry. For Coinbase holders, the sting is especially brutal given that Cathy Wood’s ARK ($ARKK) dumped 1.4 million shares

Coinbase looks a lot like Rocky after his first fight with Clubber Lang, just looking around, dazed, and continually getting beat in the face. The SEC now wants to target Coinbase for issuing unregistered securities. But, thankfully, there are some in Mordor on the Potomac who are calling the SEC out for their behavior. 

Senator Pat Toomey’s most recent Tweet highlighted the SEC’s regulation by enforcement actions. Toomey called out the SEC for enacting enforcement actions without disclosing their views. 

 

The SEC may face major backlash from both sides of the political aisle in Washington if they continue to act aggressively against the industry.

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Technically Speaking – August 22, 2022

Oof. Last week was brutal for bulls. Well, it was brutal for short-term traders who are long and anyone who has leveraged longs. For long-term bulls, the lower prices go, the happier they get. By the way: if you want to skip the nerdy bits with Elliot Wave Theory, just fast forward to the end of this article for the price levels to watch.

Bitcoin’s ($BTC.X) close on the weekly chart for last week is a great example of what ugly looks like (for bulls). Bitcoin hit the $25,000 level only to be smacked down to the $20,000 zone, ultimately closing just a hair below $21,500. 

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Powell Brutally Honest

If there’s one positive about today’s post-Powell comments, it’s that he was direct. Remember when the talking point was ‘transitory inflation,’ and anyone with a smidge of Economics 101 knew that was a bunch of B.S.? Not this time around. 

The comments from the Fed Chair were not reserved. They were not constrained. They were direct. Ok, maybe he could have been more straightforward, but considering Jackson Hole is the most important economic get-together of the year, the statesmen-like language and format are expected. 

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Do ‘Con’ Kwon Arrest Warrant Issued

Well, it finally happened. After several months of waiting to see what, if anything, would happen to Do Kwon after Terra’s Luna ($LUNAC.X) and TerraUSD ($UST.X) collapsed, the crypto community got an update today. 

The Seoul Southern District Prosecutors Office (South Korea) issued an arrest warrant for Do Kwon and several others on Terraforms team. Complaints continue to be filed against Kwon and Terraform. Kwon is accused of operating a Ponzi scheme, fraud, and tax evasion. 

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Cardano’s Vasil Upgrade Is Tomorrow

Ethereum’s ($ETH.X) Merge was, from a price action perspective, a nothing burger. Gas fees are still high, and scalability is still an issue. Shifting to Proof-of-Stake is a major, major deal – but not one that speculators were really excited about. 

Cardano’s ($ADA.X) Vasil update has the opposite situation. It’s absent the major hype that Ethereum’s Merge got, and the final results of Vasil have immediate benefits. So what are the changes with the Vasil hard fork?

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