Summary
Coinbase users, listen up: Coinbase is now allowing users to earn interest on its stablecoin, USD Coin (USDC). If you own USDC, you can earn 1.25% interest a year and use it instantly to buy more crypto. Adam Sharp explains why this is a great thing for the stablecoin world.
That’s not the only thing Coinbase is up to these days. Coinbase, Kraken, Bittrex and a number of other crypto exchanges have formed the “Crypto Rating Council” and set up a rating system to rate cryptos based on their likelihood of being categorized as a security. The system rates cryptocurrencies on a scale of 1 to 5, with 1 being least likely to be categorized as a security and 5 being most likely. Adam and Vin Narayanan discuss how the council’s proactivity is a plus… but potential biases could come into play.
At Crypto Asset Strategies, we tend to recommend cryptos on the low end of that scale. Adam explains why that is and why it’s important to keep a coin’s likelihood of becoming a security in mind when researching crypto investments.
In the altcoin world, EOS parent company Block.one paid the Securities and Exchange Commission (SEC) $24 million to settle a case about the EOS ICO. As part of the settlement, Block.one admitted no guilt to any wrongdoing – including selling unregistered securities during the ICO. And it appears EOS in its current form may not be a security either. At first glance, $24 million sounds like a hefty number for Block.one to pay to settle the case. But it’s actually a tiny amount when put in context. Adam and Vin explain how politics and money played into Block.one getting off the hook.
And finally, Adam and Vin discuss what’s going on with bitcoin prices.
If you’re interested in a particular topic, we’ve listed the time code on the right so you can skip directly to it in the video.
If you’re interested in a particular topic, we’ve listed the time code on the right so you can skip directly to it in the video.
- Block.one pays pittance to settle SEC case on trading EOS (0:28)
- Coinbase and other exchanges set up crypto rating system (3:45)
- Why we pick altcoins unlikely to be classified as securities for our portfolio (5:38)
- Potential biases in the crypto rating system (7:42)
- Coinbase allows users to earn interest on its stablecoin (10:06)
- Price talk! (13:34)
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