Today in crypto, Coinbase CEO Brian Armstrong says the crypto exchange has been working on unfreezing user accounts as a priority, Michael Saylor teased another Bitcoin purchase by Strategy for the ninth week running, and Tether’s CEO says the stablecoin issuer has no plans to go public.
Coinbase says it’s tackling frozen accounts in ‘major issue’
Coinbase CEO Brian Armstrong said the crypto exchange has reduced unnecessary user account freezing by 82%, after identifying it as a “major issue.”
In a June 6 X post, Armstrong acknowledged that account freezing has been a problem “for longer than is acceptable,” and that it has become a top priority for his firm to improve.
“The issue has been reduced by 82% so far, with more improvements coming. We’ll keep you updated as further improvements roll out,” Armstrong said, asking all customers with frozen accounts to contact Coinbase Support.
Coinbase users have expressed frustration over account restrictions for years, reporting sudden freezes lasting several months or longer, prompting some to abandon the platform.
Customer confidence in Coinbase was also recently shaken by a mass data breach that exposed the details of more than 70,000 customer accounts.
Michael Saylor teases fresh Bitcoin buy after $1 billion stock offering
Strategy co-founder and executive chairman Michael Saylor posted a chart of the company’s Bitcoin holdings on June 8, signaling a possible upcoming acquisition.
On June 8, Saylor posted “Send more Orange” on X. Saylor’s cryptic posts are often followed by announcements of new Bitcoin (BTC) purchases. If Strategy follows up the post with another BTC buy, it will mark the ninth week of consecutive Bitcoin purchases from the company.
The post comes shortly after the company purchased an additional 705 BTC between May 26 and June 1 for around $75 million at an average price of $106,495 per coin, bringing the company’s total Bitcoin holdings to 580,955 BTC, currently valued at approximately $61.4 billion.
Data from SaylorTracker shows that the company is up approximately 50% on its investment, amounting to around $20.6 billion in unrealized profit.
Saylor’s X post follows Strategy’s announcement of a $1 billion stock offering, quadrupling its previously announced $250 million raise. The company said it will use the proceeds to fund additional Bitcoin purchases and general corporate expenses
Tether CEO snubs IPO, says $515 billion valuation is “a bit bearish”
Tether CEO Paolo Ardoino says the stablecoin issuer has no intention of going public, just days after rival Circle made its debut on the New York Stock Exchange (NYSE).
“No need to go public,” Ardoino said on June 7, just two days after Circle, which is behind the stablecoin USDC (USDC), entered the public market on June 5. Circle’s shares climbed 167% on its first trading session on the NYSE.
Ardoino addressed valuation speculation raised by Artmesis CEO Jon Ma, who claimed that if Tether, which is behind the stablecoin USDT (USDT), were to go public, it would rank as the 19th largest company globally with a valuation of $515 billion, larger than multinational giants like Costco and Coca-Cola.
While Ardoino called the $515 billion valuation a “beautiful number,” he said it might actually be too low. “Maybe a bit bearish considering our current (and increasing) Bitcoin + gold treasury, yet I’m very humbled,” Ardoino said.
Quick Summary of the News
- Coinbase Account Freezes: CEO Brian Armstrong reports an 82% reduction in unnecessary account freezes and promises further improvements.
- Saylor’s Bitcoin Hint: Michael Saylor teases another Bitcoin purchase following a $1 billion stock offering.
- Tether’s IPO Stance: CEO Paolo Ardoino states Tether has no plans to go public, dismissing a $515 billion valuation as potentially too low.
Why It Matters
- Coinbase: Addressing account freezes is crucial for restoring user trust and maintaining its market position. The earlier data breach adds pressure to improve security and customer service.
- Michael Saylor/MicroStrategy: Saylor’s consistent Bitcoin accumulation strategy significantly influences market sentiment. His actions often signal confidence in Bitcoin’s long-term value.
- Tether: Tether’s decision to remain private contrasts with Circle’s public listing, reflecting different strategic priorities and risk appetites. Tether’s stability and reserves are constantly scrutinized due to its importance to the crypto ecosystem.
Market Impact
Here’s a simplified look at the potential market impacts:
| News Event | Potential Market Impact |
|---|---|
| Coinbase Fixing Freezes | Positive sentiment if users confirm improvements; negative if issues persist. |
| Saylor’s Bitcoin Buy | Typically a short-term price increase due to increased demand and positive sentiment. |
| Tether’s IPO Rejection | Limited immediate impact; ongoing scrutiny of reserves and transparency. |
Expert Take or Personal Insight
Coinbase’s efforts to resolve account freezes are commendable, but the key will be consistent execution and transparency. Saylor’s continued Bitcoin accumulation underscores the growing institutional interest and long-term bullish sentiment towards Bitcoin. Tether’s reluctance to go public likely stems from the increased regulatory scrutiny it would face. This decision reinforces the need for users to critically assess stablecoin reserves and transparency.
Actionable Insight
- Traders: Watch for follow-up announcements from MicroStrategy regarding Bitcoin purchases. These events often lead to short-term price pumps.
- Investors: Monitor Coinbase’s progress on resolving account issues. A significant improvement could signal a buying opportunity.
- Stablecoin Users: Continue to diversify stablecoin holdings and stay informed about audit reports from different issuers.
Conclusion
The crypto market remains dynamic, with company-specific actions and strategic decisions carrying significant weight. Keep a close eye on these developments, as they can provide valuable clues about the future direction of the market.