September 2, 2020 | Issue #133


Coinbase Planning Token Launch Platform for Crypto Startups

On the heels of welcoming Marc Andreessen (Founder of the prominent VC firm, a16z) and Gokul Rajaram (Director of Pinterest) to the Coinbase Boardroom, CEO Brian Armstrong confirmed that the crypto exchange is developing a platform to help startups launch their own tokens.

Startups will be able to launch their own token via initial exchange offerings (IEOs), which were popular on Binance for a while after the ICO craze died down...

(IEOs are pretty similar to old-school ICOs but the tokens/coins are offered through an exchange, rather than direct to investors. As the cryptocurrency exchange takes a percentage of the tokens sold by the startup, the exchange is incentivized to help with the token issuer’s operations.)

Essentially, Coinbase would build the platform to launch tokens, but it wouldn’t be hands-off like Kickstarter: the exchange would help with the step-by-step process of functionally executing on those plans.

This could work out well and be quite lucrative for Coinbase...

Imagine if they become the go-to platform for security token launches (including those for start-ups and advanced private equity deals).

Furthermore, seeing a token launch with the Coinbase stamp of approval could ease the minds of some potential investors, versus it launching on a lesser-known platform.

Let the speculations continue. In our opinion, all of this makes a Coinbase IPO a very real possibility in the near future.

Crypto's Story of The Year

If it wasn’t already evident that Yearn Finance is crypto’s story of the year, this past weekend cemented it. On Saturday, YFI’s price exceeded $38,000 with a $1B market cap, making Yearn.Finance the fastest unicorn of all-time.

For those of you struggling to keep up, we'll try to get you up to speed...

📈 Remarkable Growth
  • YFI, the governance token for decentralized finance (DeFi) protocol, peaked at $38,682 over the weekend. That's almost quadruple Bitcoin's current price and almost twice as high as Bitcoin's ATH of $20,000.
  • The token is up ~100% over the past week, ~727% in one month, and ~2,920% YTD.

💸 About Yearn Finance

Yearn Finance aggregates all the different yields of different DeFi protocols in one neat website. It also lets users invest in "vaults," where people earn yields together. (Yield refers to the interest earned by lending out your coins on various lending protocols.)

In addition to earning interest on your crypto, you can earn so-called governance tokens, like YFI. Though their creators intended for governance tokens to empower holders to vote on proposals to update the network, in reality they're held as speculative assets. YFI is among the most popular... and others are quickly joining the party (see SUSHI & KIMCHI)

📚 Learning Material


Teeka’s Newest Pre-IPO Rec in America’s #1 Sector

The IPO market is on fire.
  • Reuters says it’s a “frenzy.” 
  • The Wall Street Journal calls it a “bonanza.”
  • And Renaissance Capital says this boom is “historic.” 
But one sector is leading the pack.

Forbes calls it America’s “most profitable sector.”

And during his Set For Life Summit, former hedge fund manager Teeka Tiwari will reveal how to access his top pre-IPO pick for 2020…

A tiny company operating in the heart of America’s No. 1 sector.

It’s happening Wednesday, September 9th, at 8 p.m. ET.

Secure your spot here.


Under-Appreciated News of the Week

Equinor, one of the largest energy companies in the world, has partnered with the startup Crusoe Energy Solutions to significantly reduce flaring from operations through Bitcoin mining.

Flaring is the controlled burning of natural gas and is a common practice in oil/gas companies.

Crusoe's plan is to convert the natural gas that would be otherwise released into the atmosphere into electricity in order to mine cryptocurrency. This is a no-brainer, right?

Here's more from Marty Bent explaining the win-win alternative for producers and investors alike.

In other news, Barry Silbert's crypto conglomerate, Digital Currency Group, revealed the existence of a subsidiary called Foundry that will invest $100 million into mining Bitcoin and other cryptocurrencies in North America over the coming months.

Bitcoin is One for All

Parker Lewis, from Unchained Capital, covers how the current monetary policy is fueling financial inequality and distorting price signals in the market.

The whole piece is worth a read, but here are some of our favorite lines:

"Bitcoin isn’t a rich person tool that becomes serviceable to poor people once enough rich people have it... It is the opposite; it's the best way anyone can level the playing field, regardless of if the path is harder for some than others."

"If you are living in... Nicaragua, and exchange your value for bitcoin, you now have an immutable right to own a fixed percentage of the world’s money... The poorest in Nicaragua are elevated to the same level as a billionaire in New York."

Valuing Bitcoin: New Grayscale Report

This report is intended to help investors visualize why Bitcoin may be more important than ever.

Grayscale explores Bitcoin’s value indicators, delineates its substantial supply/demand imbalance, and extrapolates how these factors may create a tailwind for Bitcoin’s adoption and price.


The Unintended Consequences of a Broken Global System

Over the last several decades, the world's food supply has become interdependent. And thanks to the lockdowns around the world, a large portion of global agricultural supply chains have been destroyed.

This is going to result in shortages and civil unrest in the months and years ahead.

Click here to learn more - and learn how you can capitalize on the geopolitical uncertainty.


Investors Win $25M Settlement in Court Case Over Tezos ICO

A class-action lawsuit alleging that the Tezos ICO was an unregistered securities sale (which raised $232 million in 2017) has been settled with investors walking away with $25 million (minus lawyer fees of course).

The money will be divided among those who invested in the Tezos ICO and had a monetary loss...

Those who gained from their investment, through selling at a profit or staking (dubbed "baking") their XTZ tokens will not be able to claim damages.

SEC Targets Bitcoin-Friendly Trading App Robinhood

Robinhood Markets Inc., the company behind the crypto-friendly Robinhood app, is the subject of a civil fraud investigation, according to a Wall Street Journal report.

At issue is the company’s apparent failure to tell clients it was selling their buy and sell orders to high-speed trading firms. Such firms pay Robinhood (reportedly, 1.7 cents for every share) to actually execute trades from Robinhood’s customers, who are typically layman day traders, not high-rollers.


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