Here’s the link to the announcement…. https://blog.coinbase.com/coinbase-continues-to-explore-support-for-new-digital-assets-70419575eac4 and welcome to the unexplained wave of coins currently being entertained by Coinbase. My first impressions are “Where did this flock of middlemen and hopefuls come from”? DISCLAIMER: None of this is an accusation. It’s a caveat emptor to the cryptosphere. Odd circumstances deserve scrutiny. I am impuning the circumstances, not the parties.
This is not directed at those companies. As I write this portion of this article, I’ve only started to glance at a these. I mean that there are 50 great projects with 3–5 years of service history and are part of the global blockchain ecosystem. Those can be listed there tomorrow. Instead 17 projects, some incomplete projects some with some coin no one has ever heard of before, with all the buzzwords on their web sites, are being offered to the American consumer by a “trusted source”. I’ll say it: I think that this is the US Regulatory State putting it’s preferred players on the map. Nothing more. But the long story…
It’s my contention that one may look at several coin listings and delistings and conclude that in the US and abroad, what coin gets added to where is a factor in the US/China trade war, namely what pool of fiat can pump into it. This is a simple macro thesis, that I have floated before. The current trade war is due to the financial chicanery of several nation states. This was done thru manipulating currencies in a manner that only a nation-state can. This was done for both legitimate and illegitimate reasons that are irrelevant to the act being done.
This thesis, in toto, is that the fiat yields you are seeing are the extinction-level-event in the fiat markets. In an information age, a currency crisis will happen rapidly. This is very disruptive to the supply chains of our lives. Those supply chains revolve on credit and the credit markets are where no one can find yield. The recent liquidity injections are signs of financial instability in that old system and it appears the crypto markets will be the replacement. I think there’s evidence that some payment systems have already started running on blockchains in the background. The market cap of Litecoin is ~4B. The daily volume is 2.2B. 55% of the market cap is the daily volume? Looks like a treadmill to me…
Because some coins have been delisted. Some non-US platforms have been bullied into barring US customers and IP addresses. The pools of money and ease of which it can move into X coin has a pretty solid regulatory map to it. It’s not that you can’t get PRO or CLOAK anymore. They are on Livecoin, a little known exchange, after being tossed off Bittrex. So far, I don’t know that US customers can’t actually get any particular token, It might just be difficult. The point being is that the large platforms that are allowed to hook up a bank account will attract more funds. The regulators are only making it harder but it’s an effective tool channel the vast majority of fiat in the direction of their choosing. China is funneling to Binance; the US to Bakkt, Coinbase, and Bittrex.
However, the vast majority of US customers are at some stage between “What’s Bitcoin?” and “I know what a blockchain is, how it works, and I’m looking into my first coin past Bitcoin.”. The larger pushes will be into platforms like Coinbase and Bakkt. They don’t even hide it. 200–400 million a week. Brian Armstrong’s numbers, not mine. And that’s where these listings come in.
I think a lot of this flock of projects is just a dollar sink for US customers to be distracted by. It should be noted the public servants claim the right to regulate your economic activity in a voluntary market they disapprove of. These projects are far from the cream of what Coinbase can be offering. They still haven’t offered the older, established projects the threatened to last year. And who can forget the 12 days of Coinbase. Those releases didn’t age well. Now a new crop?
This smells like US-preferred business. Read: 1%ers who paid for your politicians to regulate them onto the playing field. There’s a line of coins with solid use cases and multi-billion dollar market caps that can put these projects out on their ass. Now another announcement without finishing the first ones?
Also, I see several coins that appear to be copy cat names to obscure a real project. While I don’t see this as a corrupt regulatory issue, I wonder what the regulators do when Sia and Chia get mistook for each other. Or VSYS, a little known coin, for SYS, a 60k TPS scaling solution for Ethereum. Kadena and Cardano(ADA). EthLEND(LEND) token now showing as AAVE in Blockfolio. Several charts have vanished from Tradingview. Again, I am seeing patterns that someone can be preyed upon through simple error or balderdash.
The open source revolution is about sharing information. Some people will take you for a few % or for a full ride if they can. The only difference between odd circumstances and the obvious signs you regret is the time it takes to get ya there. Stay savvy.
9/20/2019 EDIT: The NY fed is now injecting liquidity into the repo markets. This is QE by other means. The marketing doesn’t change the mechanics.
Donnie Gebert is a former military intelligence analyst who served in the US Army and Navy.