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Must-reads for September 26, 2018: Bitmain’s IPO filings, Dimon does blockchain, and other fun reads

Here are the crypto stories you should be watching today

The World’s Biggest Crypto Company Just Opened the Books for Its IPO (Bloomberg)
If the word “Bitmain” isn’t aready synonymous in your head with “Bitcoin,” it’s time that it is. The China-based company makes the bulk of the ASIC mining machines that mine Bitcoin and other cryptocurrencies. And mining groups controlled by Bitmain oftentimes control more than half of all of Bitcoin’s network hashrate. It turns out mining all that crypto is equivalent to mining fiat. Bitmain, which on Wednesday filed to go public in Hong Kong, had a $742.7 million profit on $2.8 billion in revenue in the first half of 2018. Its return on equity is close to 59 percent and the company holds about $887 million in crypto on its books. Of course, that may not be sustainable as Bitcoin prices stay this far below record highs. And there are competitor nipping at its heels. However, those seeking to play Bitcoin in their retirement portfolios may not need a Bitcoin-based ETF to do so if Bitmain hits the market. Some speculate the company can bring in as much as $3 billion in its IPO. Stay tuned. This could be interesting.

 

75 banks have joined JPMorgan’s blockchain payments ‘party’ (Business Insider)
How many times do we have to say this? Jamie Dimon hates crypto but loves blockchain. Now his company is taking on Ripple (which, in turn, is taking on SWIFT) with its “Interbank Information Network (IIN).” The project uses blockchain technology for cross-border payments. Societe Generale and Santander—which also works with Ripple—are among the partners in the project. But JP Morgan doesn’t have Cory Johnson or the world’s greatest board of directors like Ripple so they’re going to obviously have a tough time catching up.

 

Google And Goldman Back Bitcoin Startup For Small Businesses (Fortune)
Meanwhile, Goldman Sachs, Google Ventures and Kleiner Perkins are among the investors who just poured $25 million into Veem, a company that uses Bitcoin to get money from one part of the world to the other. Jamie Dimon to scream obscenities about Bitcoin in 5… 4… 3….

 

Google ends cryptocurrency ad ban — but only for certain kinds of ads (CNBC)
TL;DR: Regulated crypto exchanges will be able to buy Google ads in the U.S. and Japan.

 

Bitcoin Price Volatility Hits Lowest Level In Nearly 2 Years (CoinDesk)
When reading this article, stay away from absorbing any of the voodoo technical analysis discussed in the piece. We’ve written about why that’s a mess. The important part to see is that volatility in Bitcoin in really low, as anyone trading it regularly will tell you. Volatility may go up. It may not. Don’t think you can predict it. But know that in case you’re buying options on Bitcoin. Otherwise, don’t be stupid trying to guess where it’s going.

 

Hyperledger Continues Strong Momentum with 14 New Members (Hyperledger)
We normally don’t link to press releases but, hey, this mentions that FedEx and Honeywell are doing something with blockchain technology via Hyperledger. Those are two companies where we just expect everyone to wear gray flannel suits, not manbuns and tee-shirts they got from a tech conference.

 

Circle launches its stablecoin (TechCrunch)
Circle is the latest in regulated exchanges launching a stablecoin to compete with Bitfinex’s Tether. Except here’s the problem: Tether trades on Poloniex, Circle’s crypto exchange. That means one could take tethers (which may or may not have dollar assets backing it), buy bitcoin or other cryptos, and sell those for Circle’s stablecoin. Thus one can go from a questionable asset to a dollar-backed one. Think about that.

 

Bitcoin Fake News LIVE: Anatomy of a Disingenuous Express.co.uk Article (Being Crypto)
We believe in freedom of the press and the rights of reports. And we also believe in criticism. As clicks and short-term results are what matter even for old media companies, diligence sometimes falls by the wayside. This short piece is worth a read to remind us all to be wary with what we read.

 

3D Gun File Company Reorganizes After Cody Wilson Resigns (Bitcoin.com)
Nothing involving Cody Wilson is any good. He’s also a very weird person. That’s not in the article but that’s just from experience.

 

Lawrence Lewitinn, CFA is editor in chief of Modern Consensus. Disclosure: Lewitinn owns no cryptocurrencies in his portfolio.

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