ONE OF THE BIGGEST COINBASE INVESTORS DUMPS IT!
Kraken is going under investigation. Microsoft and Google’s earnings do not shake the crypto market.
Coo! It’s me, Crypto Owl and I’m really hoping you’re holding up well. We’re all waiting for the FED and FOMC meeting and, mostly, its outcome of course.
Right now, let’s take a look at Wednesday’s news!
On Today’s Menu:
🥩MEDIUM RAW STAKE: One Of The Biggest Coinbase Believers Dumps It
🥗 BUNCH OF VEGGIES: Kraken - Another Cryptocurrency Exchange Under Investigation
🍟 FRENCH FRIES: Current Situation After Microsoft And Google Earnings Announcement
CATHIE WOOD DUMPS COINBASE AT A MASSIVE LOSS
Seems like Coinbase doesn’t live the best life right now. Currently, the company is under the SEC’s radar (because of unlisted tokens) - and it is so not fun.
On top of that, there comes Mrs. Wood with her decision to sell shares of Coinbase.
Just in case…
Cathie Wood:
A true superstar in the finance world;
A crypto evangelist;
One of the most influential American investors;
Founder, CEO, and CIO of Ark Invest (ARKK);
In February 2021, Wood’s company had $50 billion in assets under management.
Wood is (or, probably, was) one of the biggest Coinbase fans - she bought roughly $29 million worth of Coinbase’s shares even on the worst days of this bear market. That was a brave move.
Wood got criticized for it, but I guess she just believed in what she was doing.
But that’s the past.
Probably the recent situation that is going on with Coinbase has changed Cathie Wood’s opinion. Ark Invest said bye to the crypto exchange and dumped slightly over $1.41 million in Coinbase stocks (by the way - Ark Investment was the third-biggest shareholder of the exchange platform).
Arkk’s CEO decided to do this while Coinbase is on their all-time-low evaluation of $53. At the time Ark Investment bought the shares, it has a worth of around $254. Ouch.
But, I guess, these significant losses seemed not so scary for miss Wood.
KRAKEN - BACK TO THE BOTTOM OF THE SEA?
This time it’s not about the Pirates of the Caribbean.
It’s about another well-recognized and widely used crypto exchange - Kraken - under investigation.
What is Kraken accused of?
Since 1979, the U.S. has imposed a packet of sanctions on Iran: it is not allowed to export any goods or services to individuals and businesses in the country.
Apparently, Kraken could intentionally ignore these sanctions. More than 1500 users in Iran reportedly had accounts on this exchange platform. Even more, there were around 150 users in Syria and more than 80 users in Cuba. These countries are sanctioned by the U.S. as well.
So, now Kraken got under the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) eye. According to internal messages from 2019, Kraken’s CEO Jesse Powell seemed to be OK breaking the law, if possible penalties wouldn’t be that harsh against possible benefits.
Honestly, this is so not cool. It seems like Powell likes to think about nothing but profits. For example, as Russia invaded Ukraine, Kraken’s CEO was the one who decided not to freeze Russian accounts, even though the society was afraid that crypto could be a gate for Russians to continue funding the war.
It’s not the first time that the Kraken is being investigated by OFAC.
In the same year, 2019, one of Kraken’s former employees sued the company, accusing it of dishonest employees’ treatment in the business, unethical and illegal business tactics, violated sanctions, and so on... Well, that is dark, just like the bottom of the ocean.
So now, if Kraken is actually let to buy and sell crypto in Iran, Syria, and Cuba, the company potentially violated sanctions, and they might be imposed with a fine. If that happens, I’ll let you know.
CURRENT SITUATION IN THE CRYPTO MARKET AFTER MICROSOFT AND GOOGLE EARNINGS DATA
Yesterday Microsoft and Google announced their earnings. Luckily enough, it wasn’t as bad as expected.
Both tech giants have missed Wall Street expectations in estimates, but on the bright side, Microsoft revenues jumped 5% in after-hours trading while Google stocks gained 4% in after-hours trading. So that’s actually nice to see!
Even though the tech market is correlating and influencing the crypto market (especially in the crypto winter), for now, we can stay calm, because basically, nothing happened. The situation is quite similar, there are no dramatic signs of bearish or bullish moves. So, I think the biggest difference that we are going to witness will be after the FOMC and FED meeting and the inflation rates announcement.
Just a thought: maybe a similar situation is with the Bitcoin and crypto market in general? Maybe analysts’ reports with expectations are not as accurate and give us less positive information as they may actually is?
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.