According to a filing with the Federal Election Commission (FEC) — the regulatory agency in charge of enforcing election laws — Coinbase’s PAC received no funds nor made any disbursements, and is seeking to terminate the PAC.
Per FEC regulations, a PAC must file a termination report in order to cease operations once it no longer intends to make or receive contributions or expenditures.
In the U.S., PACs are independent organizations, often representing different business, labor, or policy interests, that collect and donate money to political campaigns for or against candidates, legislation, or ballot initiatives.
Following the 2010 Supreme Court case of Citizens United v. FEC, PACs became the subject of some controversy and criticism, as some see them as means for corporate or union donors to put their thumbs on the electoral scale. PACs are forbidden from coordinating directly with the campaigns they support, but in some cases, coordination has occurred.
Coinbase formed its PAC in July of last year, and in September, it became a founding member of the Blockchain Association. The Blockchain Association is purportedly the first lobby group in Washington D.C. to exclusively represent the interests of the blockchain industry. Other members of the lobby group include technology startup Protocol Labs, as well as the Digital Currency Group and Polychain Capital.
The crypto markets have incurred overwhelmingly bullish price action over the past several weeks that appears to have confirmed many analyst’s belief that $3,200 truly is a long-term bottom for Bitcoin (BTC). The recent price action has drastically shifted overall market sentiment, and many investors are growing increasingly bullish with each new day.
Despite this shift, one highly-respected analyst laid out what he believes is a realistic “maximum pain scenario” for Bitcoin, explaining that it may surge to above $6,000 before incurring significant selling pressure that pushes it lower.
Bitcoin (BTC) Solidifies Position in $5,300 Range
At the time of writing, Bitcoin is trading up less than 1% at its current price of $5,330, up from 24-hour lows of $5,260.
After incurring some light selling pressure during this past Sunday, Bitcoin has been able to continue climbing higher and appears to have firmly solidified its position in the $5,300 region, just slightly below its historically established resistance level that is exists at $5,400.
Over a one-week period, BTC is up significantly from its lows of $5,020, which were set last Monday. The cryptocurrency is currently trading just a hair below its seven-day highs of roughly $5,360, which were set earlier today.
UB, a popular cryptocurrency analyst on Twitter, shared his thoughts on Bitcoin’s current price action, explaining that yesterday’s small dip could have been just what was needed to spark a small rally that would confirm his bullish sentiment.
“$BTC – I wouldn’t be surprised if yesterday was “The Dip” before testing the local highs. I’d like to see a Daily Close above $5320 to further confirm my bullish argument. If I don’t see that in the next day or two, my bearish arguments will begin to hold more weight,” he explained in a recent tweet.
$BTC – I wouldn’t be surprised if Yesterday was “The Dip” before testing the local highs. I’d like to see a Daily Close above $5320 to further confirm my bullish argument.
Although Bitcoin may be on the edge of incurring some significantly bullish momentum, a move higher may be directly followed by a drop back into the lower $4,000 region.
Alex Krüger, an economist who focuses primarily on cryptocurrencies, explained this possibility in a recent tweet, saying that he thinks another drop to $4,000 is the most realistic “maximum pain scenario” for the cryptocurrency.
“Maximum pain scenario for $BTC: – shoot through to $6000 – rest right above $6000, luring longs in – dump back down to $4000s in 2 days – have everyone scream ‘this is The End’ – slowly move back up,” he explained.
Although BTC was just trading at $4,000 a few weeks ago, the question remains as to whether or not the recent price surge and continued upwards momentum will build enough support levels to keep the crypto above the $5,000 price level.
Coinbase is moving to shut down its political action committee (PAC) without ever raising a cent.
The San Francisco-based crypto exchange filed a Termination Report for its PAC on April 3, 2019, according to publicly available documents on the Federal Election Commission’s website (FEC). The move means that the exchange wants to shut down its PAC, though it was not immediately clear if the committee had actually been shut down.
A Coinbase spokesperson confirmed that the exchange had filed to shut down its PAC, but could not say if the FEC has granted the request yet.
PACs are typically formed to raise funds on behalf of specific candidates for public office or business and ideological interests. However, the Coinbase PAC did not raise any funds, nor did it back any candidates during its 10-month lifespan, public filings show.
Brian Brooks, who joined Coinbase as chief legal officer in September, was the likely candidate to have taken over the PAC following Lempres’ departure.
According to the FEC’s website, a committee can file to terminate its operations if “it no longer receives (or intends to receive) contributions,” or if “it no longer makes (or intends to make) expenditures.”
That said, a committee is required to continue regularly filing disclosure reports until the FEC accepts the termination report, the site explained, adding:
“Committees shouldn’t stop filing just because they checked the ‘Termination Report’ box on their regular campaign finance disclosure form. Committees must file regularly scheduled reports until the Commission notifies them in writing that it has granted their request to terminate.”
Coinbase CEO Brian Armstrong at Consensus image via Coinbase/YT
Bitcoin dwarfs every other altcoin when it comes to return on investment (ROI) since initial exchange listing, data shows. Had you threw in just $100 bucks into BTC in 2010, you would be a millionaire today.
Bitcoin ROI Shows Why They’re Called ‘Altcoins’
A new visual graph from DataLight perfectly illustrates just how impressive Bitcoin ROI (return on investment) has been over the past decade.
Buying just $100 USD worth of Bitcoin in mid-2010 would have netted you a cool $1.3 million today. That is, if you managed to ‘hodl’ instead of ‘sodl’ your precious bits until today.
By comparison, every other cryptocurrency has been dwarfed by BTC when it comes to ROI since being first listed on an exchange.
Granted, when it comes to trading on exchanges, Bitcoin has an almost 3 year head start even on Litecoin, one of the oldest ‘altcoins’ and the first to use the Scrypt hashing algorithm. But for those banking on the ‘silver to Bitcoin’s gold’ to beat Bitcoin’s returns anytime soon may be out of luck.
Certainly, Litcoin has seen some impressive rips in recent years. However, the price of Litecoin has had a much different trajectory while being at the mercy of BTC market cycles.
For example LTC/USD peaked at around $35 in November 2013. These same price levels then repeated in July 2017….and again in January 2019. This is more reflective of speculative, pump-n-dump behavior than a (secondary) store of value.
Bitcoin, on the other hand, stands out as it continues to post higher highs after every bubble making it the perennial leader of cryptocurrencies today.
Ethereum (ETH) 00 has been the best performing altcoin since its exchange debut in 2015. One hundred bucks into Ethereum would have netted you roughly $68,000 today at around $170 per ETH. Though, undoubtedly, this figure would be much higher at Ethereum’s all-time high of nearly $1,400 in January 2018.
Bitcoin-branded forks like Bitcoin Cash, meanwhile, have fared even worse, actually depreciating in value since their inception.
Bitcoin Apples to Altcoin Oranges
More recently, Bitcoinist highlighted the stellar performance of Binance Coin (BNB) 00, which has skyrocketed in value since launching in mid-2017. In fact, it has become the first cryptocurrency to surpass the January 2018 all-time high.
At the same time, comparing in-house digital tokens like BNB (and pretty much every other ‘alt’ with a foundation or a company behind it) to Bitcoin is like comparing apples to oranges.
In fact, every single altcoin is paired against bitcoin by default for a reason. Admittedly, some altcoins have performaned marvelously against BTC since their inception, particularly on shorter timeframes.
But as the saying goes: the faster they rise, the faster they fall.
That’s because their low market caps on exchanges are both a weakess and a strength. In bull-markets, for example, a lower cap means a coin can be pumped much easier allowing it to outpace the gains of high cap cryptocurrencies like Bitcoin.
On longer timeframes, however, the story repeats over and over again as Bitcoin demonstrates who’s king.
Think Your Favorite Altcoin Can Beat BTC? Good Luck.
Therefore, it is no surprise that Bitcoin, being a truly leaderless, decentralized and open-source cryptocurrency, has attracted the most network effect and hashing power to be the most secure blockchain today.
Subsequently, this give investor confidence more confidence in Bitcoin above all. It also means that it’s the de facto choice for trustlessly transferring value over any other cryptocurrency regardless of fees.
It’s also no coincidence that the SEC is considering approving a Bitcoin ETF only. It’s why Bitcoin trading instruments have been the first to hit traditional markets; and why investors are increasingly calling it ‘irresponsible’ not to have exposure to BTC in 2019.
In fact, data has shown that allocating only 1 percent of one’s portfolio to bitcoin historically outperforms the S&P 500, gold and US Treasury bonds.
But, more importantly, it also highlights the possibility of a Lindy effect, suggesting that the ‘internet of money’ could be a zero sum game. If so, then betting on ‘the next bitcoin’ looks more like gambling. Whereas bitcoin is increasingly becoming the safer play and one of the best investment opportunities in generations.