MAY 29, 2022 | Issue 17
Search: "crypto real estate"
What do journalists write about when there is nothing new or interesting to report? I guess they either write a "soft" news story, interview an industry expert, or skip the segment. I have been looking for crypto real estate news and some weeks there simply isn't anything worthy to write about. This is one of those weeks so I decided to omit the "Crypto & Real Estate News" section. In future issues when there aren't any crypto real estate news stories, I will profile a crypto real estate person or company. If you have any suggestions, send them to me. However, there is no shortage of crypto news so I'll keep reporting on how the crypto industry is managing during this economic downturn. Now is a great time to increase your knowledge about crypto. Learn during the slow times so when things turnaround, you will be a crypto real estate leader in your market. Read crypto stories in business publications and read Crypto News for Realtors. Be a smart real estate professional. Spend five to seven minutes each week reading what takes me 15 hours to research and write. If you work at CØMPASS, participate in our crypto Workplace group and ask your sales manager to invite me to speak to your office.
If you don't work at CØMPASS, I'm happy to speak with you and your colleagues. Enjoy this long weekend. Have a productive week and stay crypto curious! Rich Hopen firstname.lastname@example.org | 908.917.7926 PS. You can find all CNR newsletters here.
▸ Courts Asked to Decide If Crypto Tokens Are Securities
A class-action lawsuit against crypto exchange Coinbase claimed that 79 tokens are unregistered securities. Plaintiffs are seeking reimbursement for trading fees and market losses.
As the crypto markets continue to lose money, more class-action lawsuits are likely. The Wall Street Journal reporter Paul Kiernan quoted Joseph Grundfest, former SEC commissioner, "The more money at stake, the higher the probability of litigation, and with the sharp downturn in crypto values, the incentives to litigate have turned up as sharply.”
Crypto trading platforms are not regulated and the SEC has stated that many crypto products are securities.
Government department heads are debating which departments should have regulatory authority. Meanwhile, Congress members are introducing bills with their preference.
The battle over who regulates the crypto industry will be fought in congress, the administration, and the courts.
▸ Elon Tweets & Dogecoin Jumps 10%
In December, Elon Musk tweeted that his beloved dogecoin could be used to purchase Tesla merchandise. On Friday morning, Musk tweeted that dogecoin could also be used to buy SpaceX swag. DOGE increased in value by 10%.
▸ Fed Reserve Vice Chair Brainard Discusses CBDC With House Financial Services Committee
Could a central bank digital currency (CBDC) be a safe alternative to private-sector crypto currencies such as stablecoins? Brainard said, "it could provide a safe, central bank liability as the neutral settlement layer in the digital financial ecosystem."
The CBDC would be issued and backed by the US central bank. While the US government continues to study the feasibility of issuing a digital currency, other countries such as China, have already done so.
Commercial banks see a CBDC as a threat. It would likely siphon dollars away from banks which would cause banks to charge higher fees for loans. Greg Baer, head of the Bank Policy Institute, said that a "CBDC would seriously disrupt the financial system, significantly harming consumers and businesses."
Privacy rights advocates are also resisting a CBDC unless the government can ensure that digital currency transactions will not be tied a user's identity.
CRYPTO CLASS – LIGHTNING NETWORK
The Lightning Network allows people to send and instantly receive small amounts of bitcoin.
Bitcoin, the world's most widely used cryptocurrency, has drawbacks to its decentralized design. Transactions can take up to an hour before they are settled. Small transactions could have high fees making paying with bitcoin impractical.
On the Lightning Network, payments are quick and the fees are nominal. This is because the transactions aren't initially validated on the blockchain. The parties close their own transaction.
INFLUENCERS - People to follow
Lyn Alden – @LynAldenContact
Alden is an investment strategist who writes about crypto and macro trends. She is cited by many top crypto commentators. Her "Strategy Investment Newsletter is free and has tens of thousands of subscribers.
RESOURCES – Books, websites, podcasts, articles
CoinMarketCap provides financial data on cryptocurrencies, exchanges, NFTs, and other things crypto.
CRYPTO WORDS – BEAR MARKET
A bear market occurs when there is a prolonged drop in price. For securities, it is when prices fall 20% or more from recent highs. Bear markets can be either short term or long term. Like stocks, crypto is in a bear market.
OH, ONE MORE THING –
Thanks for reading! See you next week.
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