Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?

Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?

With the recent Bitcoin price crash has come a number of speculations out of the market. Amateurs and experts alike have been giving their predictions on what they believe will happen going forward. While most have been bearish, the forecast from Mike McGlone is a rather bullish one. The Bloomberg analyst has sparked hope in the hearts of some with his forecast that $20,000 is the new $5,000 for bitcoin.

Good News For Bitcoin

McGlone took to Twitter to share his forecast for the leading cryptocurrency in the market. Panic had washed through investors when the digital asset had declined to the $20,000 level, tethering just slightly above it. While many believe that this was a signal for a further downtrend to come, some have said that it may have marked the bottom for the asset.

Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story

In his tweet, the Bloomberg analyst points to the early days of adoption in contrast with the diminishing supply of bitcoin may prevail. This argument is by no means a new one. The limited supply of BTC has long been one of its pulls for investors who believe that in the end, the scarcity of the cryptocurrency will be what drives its price higher. Mainly, McGlone suggests that BTC is approaching “too cold” levels, and as such, $20,000 may well be the new $5,000.

What this implies is that the bottom of the current downtrend may be in. Looking at the previous bear market, it is obvious that the bottom was clocked right when the price had fallen below $6,000 in the early days of 2022. If so, then there is no further decline for the digital asset from this point.

BTC resumes downtrend | Source: BTCUSD on TradingView.com

But Is The Bottom In?

Just as one historical movement can tell one story of the bitcoin bottom, so do the others. Now, it is known that the last bear market saw the price of bitcoin declined more than 80% from its all-time high. This trend has been closely followed through the bear markets. Despite the brutal crash in the last couple of days, bitcoin is still less than 70% down from its November all-time high. Given this, there may be more decline to come if it was to follow this trend.

Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?

However, there is another trend that lends credence to McGlone’s prediction. This is the fact that no matter the decline, the price of the digital asset has never fallen below the previous cycle peak. Given that bitcoin’s last peak was a little under $20,000, the bottom may indeed be in if this trend is held.

One thing to note though is that the present market has been deviating from previously established trends. It had begun with the multiple bull rallies of 2021 and now has carried into the bearish market of 2022. So, maybe there will be more breaking of historical trends to come. 

Featured image from Cryptoknowmics, chart from TradingView.com

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The sharp fall in cryptocurrencies has pulled the total crypto market capitalization below $900 billion. According to CoinGoLive, 72 out of the top 100 tokens have declined in excess of 90% from their all-time highs. In comparison, the top-10 coins have outperformed during the fall, dropping an average of 79% from their all-time high. 

Bitcoin (BTC) is down more than 70% from its all-time high but the bulls are struggling to arrest the decline. Jurrien Timmer, director of global macro of Fidelity, highlighted that Bitcoin could be “cheaper than it looks” considering the metric of price-to-network ratio, which is similar to the price-to-earnings ratio used in the equities market to value a stock.

Daily cryptocurrency market performance. Source: Coin360

Billionaire investor Mark Cuban said in an interview with Fortune that projects without valid business prospects will vanish as bear markets have a cleansing effect on the market. However, he added that innovation in the crypto sector is likely to continue during the market downturn.

Could Bitcoin and major altcoins hold their respective support levels? Let’s study the charts of the top-10 cryptocurrencies to find out.


The bulls are attempting to keep Bitcoin above the psychological support of $20,000 but they are facing strong resistance at $23,362. This suggests that the bears have not given up and that they continue to sell on rallies.

BTC/USDT daily chart. Source: TradingView

The longer the time spent near $20,000, the greater the possibility of a break below it. If bears sink the price below $20,000, the BTC/USDT pair could witness panic selling. That could pull the price to $17,500 and then to $16,000.

The one ray of hope for the buyers is that the relative strength index (RSI) has dipped into deeply oversold levels. This suggests that a relief rally is possible in the short term. If bulls drive the price above $23,362, the pair could rally to the 20-day exponential moving average (EMA) ($26,574).


Ether (ETH) is in a firm bear grip. The bulls bought the dip to $1,014 on June 15, as seen from the long tail on the day’s candlestick. However, the recovery was short-lived as the bears pulled the price back below $1,100 on June 16.

ETH/USDT daily chart. Source: TradingView

If bears sink the price below $1,000, the selling pressure could accelerate and the ETH/USDT pair could plummet to $900. Although the downsloping moving averages indicate advantage to bears, the deeply oversold level on the RSI suggests that a relief rally may be around the corner.

The bulls will have to push and sustain the price above $1,268 to start a sustained recovery. Above this level, the pair could rise to the 20-day EMA ($1,547) where the bears may again mount a strong resistance.


BNB is consolidating near the crucial support of $211 since June 13. The bulls started a recovery on June 15 but that fizzled out at $237 on June 16.

BNB/USDT daily chart. Source: TradingView

If the price slips below the $211 to $198 support zone, the BNB/USDT pair could start the next leg of the downtrend. The pair could then slide to $186 and later plummet toward the strong support at $150.

On the other hand, if the price rebounds off the $211 support, the buyers will try to propel the pair above $237. If they succeed, the pair could rally to the 20-day EMA ($265). This is an important level to watch out for because a break and close above it will suggest that the pair may have bottomed out.


Cardano (ADA) bounced off $0.44 on June 14 and bulls pushed the price to the 20-day EMA ($0.54) on June 15. The bears defended this level aggressively and the price turned down on June 16.

ADA/USDT daily chart. Source: TradingView

The price is stuck between the 20-day EMA and $0.44 but this tight range trading is unlikely to continue for long. If buyers propel the price above the 20-day EMA, the ADA/USDT pair could rally to the 50-day simple moving average (SMA) ($0.59). A break above this level could open the doors for a potential rally to the overhead zone between $0.69 and $0.74.

Alternatively, if the price turns down and plummets below $0.44, it will suggest that bears are back in the game. A break and close below $0.40 could start the next leg of the downward move.


Ripple (XRP) bounced off $0.29 on June 14 and reached $0.35 on June 15, which turned out to be stiff resistance. The buyers are again attempting to push the price above $0.35.

XRP/USDT daily chart. Source: TradingView

If they manage to do that, the XRP/USDT pair could rally to the breakdown level of $0.38. This is an important level to keep an eye on because a break and close above it could clear the path for a possible rally to the 50-day SMA ($0.44). The positive divergence on the RSI indicates that the bears may be losing their grip.

Contrary to this assumption, if the price turns down from the current level and slips below $0.29, it will suggest the resumption of the downtrend. The next support on the downside is $0.24.


Solana (SOL) attempted a recovery on June 15, which hit a barrier at the breakdown level of $35. The price turned down on June 16 but the bulls are attempting to defend the level at $30.

SOL/USDT daily chart. Source: TradingView

The buyers will make one more attempt to push the price above the overhead zone between $35 and the 20-day EMA ($37). If they succeed, the SOL/USDT pair could rally to the 50-day SMA ($52).

Conversely, if the price turns down from the overhead zone, it will suggest that bears continue to sell at resistance levels. The bears will then try to sink the pair below $26 and resume the downtrend. The next support on the downside is $22 and then $20.


Dogecoin (DOGE) is consolidating in a downtrend. The buyers defended the psychological level at $0.05 and attempted a relief rally on June 15 but they could not sustain the higher levels. This suggests that bears continue to sell on rallies

DOGE/USDT daily chart. Source: TradingView

The buyers are attempting to arrest the decline near $0.06 on June 17. If they succeed, the DOGE/USDT pair could resume its recovery.

A break above the June 15 intraday high could clear the path for a possible rally to the 20-day EMA ($0.07). If bulls overcome this barrier, the DOGE/USDT pair could rally to the 50-day SMA ($0.09).

Contrary to this assumption, if the price turns down and breaks below the critical support at $0.05, it will suggest the start of the next leg of the downtrend. The pair could then decline to $0.04.

Related: Bitcoin whale support lines up as trader says $14K ‘most bearish’ BTC price target


Polkadot (DOT) rallied sharply on June 15 and reached the 20-day EMA ($8.62) but the bulls could not overcome this resistance. This indicates that bears are active at higher levels.

DOT/USDT daily chart. Source: TradingView

The price turned down sharply on June 16 and has dropped near the critical support zone between $7.30 and $6.36. The buyers are expected to defend this zone aggressively because a failure to do so could resume the downtrend toward $4.23.

If the price rebounds off the support zone, it will suggest accumulation at lower levels. The buyers will then make one more attempt to push the price above the 20-day EMA. If they manage to do that, the DOT/USDT pair could rally to the 50-day SMA ($10.54).


UNUS SED LEO (LEO) continues to trade inside the descending channel. The bears pulled the price below the moving averages on June 15 but failed to extend the decline to the support line.

LEO/USD daily chart. Source: TradingView

The buyers are attempting to push the price back toward the moving averages. If the price turns down from this resistance, it could increase the prospects of a retest of the support line of the channel. A break and close below this level could intensify selling.

Conversely, if buyers push the price above the moving averages, the LEO/USD pair could rise to the resistance line. This is an important level for the bears to defend because a break and close above it could suggest the start of a new up-move to $6.25.


Avalanche (AVAX) is consolidating in a downtrend and the bulls are attempting to defend the support at $14.50. The buyers tried to push the price toward the breakdown level of $21.35 on June 16 but the higher levels continue to attract selling.

AVAX/USDT daily chart. Source: TradingView

If the price turns down and breaks below $14.50, it could signal the start of the next leg of the downtrend. The AVAX/USDT pair could then decline to $13.

On the contrary, if bulls successfully defend the $14.50 support, the pair could make another attempt to rise to $21.35. This is an important level to watch out for because the bears will try to flip it into resistance and pull the pair down to $14.50.

The buyers will have to push and sustain the price above the 20-day EMA ($21.94) to signal a potential trend change.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Bitmex, Deribit Liquidate 3AC’s Positions — Negativity Continues to Plague the Crypto Hedge Fund – Bitcoin News

Bitmex, Deribit Liquidate 3AC’s Positions — Negativity Continues to Plague the Crypto Hedge Fund – Bitcoin News

Two days ago, Bitcoin.com News reported on the crypto hedge fund Three Arrows Capital (3AC) after reports claimed that the company was allegedly struggling with financial hardship and possible insolvency. Now the crypto firm Finblox is feeling the effects of 3AC’s troubles, and a few digital currency companies have liquidated the hedge fund’s leveraged positions.

Speculation Concerning Financial Hardships Tied to Three Arrows Capital Continue

There’s a lot of rumors and speculation surrounding the crypto hedge fund Three Arrows Capital (3AC), and it seems to be affecting other crypto companies as well. Arguably, 3AC’s problems started with its investment into the Terra blockchain, as it purchased $559 million worth of locked LUNA (now luna classic), which is now worth just under $700. The Twitter account called The Defi Edge (@thedefiedge) explained in a Twitter thread that after the Terra fallout, 3AC allegedly tried to get funds back by using more leverage to earn back its Terra investment losses.

Although, markets shuddered even more after the Terra LUNA and UST implosion, causing a significant amount of liquidations across the entire crypto industry. Another account called Degentrading (@hodlkryptonite) said 3AC borrowed from every major lender and the firm faced significant liquidations this week. Furthermore, there’s been speculation that 3AC was dumping a great deal of Lido’s wrapped ether product called stETH, which was putting a burden on the stETH peg. Then a company backed by 3AC called Finblox detailed that it had to pause rewards (up to 90% APY) for all of its users, and the platform upped withdrawal limits as well.

Furthermore, after The Defi Edge finished his Twitter thread, a company (Protocol X) that 3AC invested in and wished to remain anonymous, told The Defi Edge that 3AC was holding the project’s treasury. “3AC invests in different seed rounds of companies. The protocol raises money usually in USDC / USDT. Well, the treasury is usually sitting around doing nothing. So a common deal 3AC did with their protocols is ‘manage’ their treasury,” The Defi Edge wrote. The Twitter account added:

3AC’s Treasury Management. 3AC gave an 8% APR guarantee on the treasury. So protocols would park the funds raised by 3AC + additional parts of their treasury. The protocols felt safe because well…it’s 3AC. Protocol X has mentioned that the ghosting is real. They’ve talked to two other protocols who also mentioned that they’re being ghosted too by them. 3AC now holds part of their treasury, and they have no idea what’s the state of their cash.

Bitmex and Deribit Liquidate 3AC Positions, Co-Founder Kyle Davies Says the Hedge Fund Is ‘Finding an Equitable Solution for All Constituents’

Additionally, a report published by The Block notes that Bitmex liquidated 3AC’s positions but did not disclose how much was liquidated. “This was collateralised debt and did not involve any client funds,” a Bitmex spokesperson told The Block. “We are not going to be like other brands and wax poetic about our limited exposure and strong capital position — instead, we will demonstrate it by providing our users a reliable and liquid trading venue every day, no matter the situation.” On Twitter, the crypto derivatives exchange Deribit also disclosed information about 3AC’s business dealings.

“We can confirm that Three Arrows Capital is a shareholder of our parent company since February 2020,” Deribit said on Thursday. “Due to market developments, Deribit has a small number of accounts that have a net debt to us that we consider as potentially distressed. Even in the event that none of this debt is repaid to us, we will remain financially healthy and operations will not be impacted. We can confirm all customer funds are safe and the full insurance fund will remain intact as is. Any potential losses will be covered by Deribit,” the exchange added.

The same report published by The Block notes that the editorial’s author contacted both FTX and Bitfinex about 3AC dealings as well. FTX told The Block author Yogita Khatri that they do not comment on their customers, and Bitfinex explained that it “had closed its positions at a loss without having to be liquidated,” Khatri’s report details. According to the Bitfinex statement, 3AC has removed all of its funds from the company’s exchange. Since the rumors and speculation started to swirl around 3AC’s business dealings, so far, the public has only heard from the company’s co-founder Su Zhu once on Twitter.

The cryptic tweet doesn’t really get into any specifics, but says: “We are in the process of communicating with relevant parties and fully committed to working this out.” 3AC’s co-founder Kyle Davies has not tweeted since June 9. Davies, however, did speak with the Wall Street Journal (WSJ) and said: “We have always been believers in crypto and we still are. We are committed to working things out and finding an equitable solution for all our constituents.” The WSJ report noted that 3AC was looking for help from “legal and financial advisers” in order to quell the company’s financial burdens.

Tags in this story
@hodlkryptonite, @thedefiedge, 3AC, 3AC hedge fund, BitFinex, BitMex, crypto hedge fund, data, Degentrading, deribit, Dune Analytics, Finblox, ftx, Insolvency, insolvent, Kyle Davies, Liquidations, report, rumors, Speculation, Su Zhu, Terra LUNA and UST, The Block, The Defi Edge, Three Arrows Capital, Treasuries, USCC, USDD, Yogita Khatri

What do you think about the alleged financial issues surrounding the crypto hedge fund 3AC during the last week? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Long-Term Holders Now Own Nearly 80% Of Realized Cap

Bitcoin Long-Term Holders Now Own Nearly 80% Of Realized Cap

On-chain data shows the part of the Bitcoin realized cap held by the long-term holders has increased and is now at nearly 80%.

Bitcoin Long-Term Holders Own Almost 80% Of Realized Cap

As explained by an analyst in a CryptoQuant post, the crypto has historically tended to form bottoms around when the long-term holder share of realized cap has exceeded 80%.

The “long-term holders” (LTHs) are all those Bitcoin investors who have been holding onto their coins without selling or moving since at least 155 days ago.

The realized cap is a way of assessing the capitalization of the crypto where each circulating coin’s value is taken as the price it was last moved or sold at, rather than the current BTC price.

Now, the relevant on-chain indicator here is the “realized cap – UTXO age bands (%),” which tells us what part are the various groups in the Bitcoin market contributing to the total realized cap of the coin.

Related Reading | Bitcoin Exchange Reserve Spikes Up, Selloff Not Over Yet?

The various age bands denote the amount of time investors belonging to a group have been holding their coins for.

As mentioned earlier, LTHs include all cohorts holding since at least 155 days ago. Here is a chart that shows how the contribution to the realized cap by these investors have changed over the history of Bitcoin:

Looks like the value of the metric has observed rise recently | Source: CryptoQuant

In the above graph, the quant has marked all the relevant points of trend related to the Bitcoin realized cap percentage of the LTHs.

It seems like whenever the indicator’s value has crossed the 80% mark, a bottom in the price of the crypto has taken place.

Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story

Currently, the metric’s value has been rising up in recent weeks, however, it has still not gone above the threshold just yet.

Nonetheless, the indicator is nearly there. If its value continues to rise and the historical pattern holds this time as well, then Bitcoin may observe a bottom soon.

BTC Price

At the time of writing, Bitcoin’s price floats around $21k, down 30% in the last seven days. Over the past month, the crypto has lost 30% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

The value of the crypto seems to have been moving sideways over the last few days | Source: BTCUSD on TradingView

Since the crash a few days ago, Bitcoin has been mostly consolidating around the $21k mark. Currently, it’s unclear whether the decline is over, or if more is coming.

If the LTH share of the realized cap is anything to go by, then BTC may first seen a bit more decline before the bottom is finally in.

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Which decentralized finance innovations are expected by the DeFi community?

Which decentralized finance innovations are expected by the DeFi community?

While the broader crypto market is on a downward spiral and social media is plagued with fears and complaints, some are choosing to focus on the decentralized finance (DeFi) space’s potential for the future. 

In a DeFi subreddit, Redditor Popular_Rub9075 asked community members what they want to see more of in the DeFi space. According to the Redditor, while negative discussions are prevalent in social channels, a “great time” to look into projects that have potential is when the market is down.

In response to the thread, Reddit user Crumbedsausage said that he wishes to see more Liquid Ether (ETH) staking projects that are non-custodial. In addition, the Redditor said that being able to run an Ethereum node with “1 ETH or less” may be good for decentralization and provide realistic annual percentage yields.

Apart from this, another user, called Geistirnd, noted that they believe in the potential of DeFi projects that are focused on privacy. According to the Redditor, providing more privacy options for DeFi users will be a catalyst for the “wider adoption of DeFi.” On the other hand, one of the participants in the thread also brought up yield making, pointing out that everyone wants new ways to “make some gains.”

Related: What to do after getting rich from crypto: Community answers the ultimate question

Meanwhile, Binance Labs has announced that it will launch the fifth iteration of its Most Valuable Builder (MVB) program, its incubation platform that supports new DeFi projects. The fifth round of MVB is a collaborative effort between Binance Labs and BNB Chain.

In other news, Bitfrost, a decentralized cross-chain liquidity provider, launched an updated Slot Liquidity Auction Protocol on Friday. With this protocol, the project provides liquid derivatives tokens in exchange for the tokens staked. These tokens can be used throughout DeFi, eliminating the opportunity cost for users who have staked their coins.

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The Number of Tethers in Circulation Dropped by Over 12 Billion in 2 Months, USDC Grew by 9% – Altcoins Bitcoin News

The Number of Tethers in Circulation Dropped by Over 12 Billion in 2 Months, USDC Grew by 9% – Altcoins Bitcoin News

During the last two months, the stablecoin tether has been one of the most traded crypto assets swapped against a myriad of digital currencies. 66 days ago on April 11, 2022, tether’s market valuation was over $82 billion with 82,694,361,442 tethers in circulation. Since then, more than 12 billion tethers have been removed from circulation amid the Terra blockchain implosion, the recent crypto market carnage, and rumors circulating around Celsius and Three Arrows Capital (3AC).

More Than 12 Billion Tethers Leave the Crypto Economy Since April 11

According to market data, the number of tether (USDT) in circulation has dwindled down from over 82 billion to today’s 70 billion. Bitcoin.com News reported on the swelling stablecoin market valuation of all the fiat-pegged tokens in existence as the stablecoin economy neared $200 billion, on April 11.

On that day, there were approximately 82,694,361,442 tethers in circulation after the dollar-pegged crypto saw a 3% increase in growth the month prior. Since then, 15.30% has been removed from circulation as the circulating supply on June 16, 2022, is 70,038,816,028 USDT, according to coingecko.com metrics.

Tether (USDT) market capitalization over the past 90 days.

People have been noticing the number of tethers in circulation dropping, as crypto advocates have been discussing the subject on social media. Much of the USDT in circulation has been removed since the terrausd (UST) de-pegging incident, as there were 82.79 billion tethers in circulation on May 12, 2022.

Two days later on May 14, the number or tethers in circulation was down 7.25% to 76.70 billion USDT, according to coingecko.com stats saved on archive.org. During the course of 33 days, another 8.73% has been removed from circulation since May 14.

USDC’s Market Cap Grows Over the Last 2 Months, Tether Commands Lion’s Share of Global Trade Volume

Meanwhile, tether’s competitor usd coin (USDC) has grown during the last two months. On April 16, 2022, the total amount of USDC in circulation was approximately 50,090,822,252 tokens according to coingecko.com metrics recorded on archive.org. Since then, the number of USDC has grown to 54,582,713,063, or 8.96% larger, during the past two months.

While tether millionaire addresses drop, usd coin millionaire addresses increased surpassing tether’s lead.

During the terrausd (UST) fiasco, the number of USDC slid to 49,122,170,211 on May 12. The USDC in circulation then grew from the 49.12 billion region to 53,804,005,416 by June 10. USDC saw a slight issuance increase since then. Circle also announced the launch of euro coin (EUROC) backed 1:1 by the euro this month.

Data recorded on June 16 shows that USDT commands the lion’s share of the global cryptocurrency trade volume, as it accounts for $51.41 billion of the $96.31 billion in volume on Thursday. That means 53.37% of all the crypto trades on Thursday have been paired with USDT.

The amount of USDC traded on June 16 pales in comparison, as the stablecoin recorded $5.93 billion or 6.15% of the global crypto trade volume during the last 24 hours. Cryptocompare data recorded on June 16 shows USDT trades accounted for 56% of bitcoin’s (BTC) trade volume. While USDC accounted for 2.77% of all BTC trades on Thursday.

Tags in this story
$70 billion, 82 billion, Bitcoin, BTC, Circle, Dollars, euro coin, EUROC, Global Trade Volume, redemption, Stablecoin, stablecoin crypto, Stablecoin Supply, Stablecoin Tokens, Tether, Tether (USDT), Tether in circulation, tethers, usd coin, USDT, UST de-pegging incident

What do you think about the number of tethers in circulation declining? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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The Sandbox (SAND) Blows Up 20% After Collab With Major Entertainment Firm

The Sandbox (SAND) Blows Up 20% After Collab With Major Entertainment Firm

The Sandbox native token, SAND, jumped from eight-month lows following Friday’s announcement of a collaboration between the metaverse and Lionsgate Studios.

As a result of the news, SAND surged as high as 20% to $0.9715, before reversing course to trade at $0.8647. The move helped SAND overcome a seven-day losing run in the face of gloom in the bear market.

Lionsgate is one of the biggest private studios in the United States, and it owns Rambo, Hellboy, and The Expendables, all of which will soon be featured in The Sandbox.

Suggested Reading | Bitcoin At $20K Could Be ‘New Bottom,’ Commodity Expert Suggests, And Here’s Why

The Sandbox (SAND) Soars 3.78%

At the time of writing, SAND was trading at 0.873, up 3.78 percent from its daily high of $0.9753. The 24-hour trading volume on the Sandbox was $269.75 million.

As of Friday, the circulating supply of SAND is 1.25 billion and the maximum supply is 3 billion.

Based on their increased production in the horror and action domains, the metaverse has devised a comprehensive transition plan, and Lionsgate will contribute to adapting its characters and captivating stories to web3-compatible platforms.

The Sandbox is a play-to-earn blockchain game that enables users to create a digital world on the Ethereum blockchain using non-fungible tokens.

The Sandbox allows players to create their own avatars to access the different games and destinations available. On the blockchain, it is the DeFi version of Minecraft.

Lionsgate is one of the biggest private entertainment studios in the United States. Image: Deadline.

SAND is an ERC20 utility token that enables the purchase and sale of LANDS and ASSETS within The Sandbox’s metaverse. It is also The Sandbox DAO’s governance token.

The Sandbox Guns For Over $4 Billion Valuation

The Sandbox, which is owned by blockchain gaming behemoth Animoca Brands, reportedly seeks to attract funds at a valuation of more than $4 billion.

The Sandbox reports that this deal will make Lionsgate the first major Hollywood studio to enter the metaverse.

This will not be The Sandbox’s first significant partnership, as it has already hosted material from Snoop Dogg, The Smurfs, and Adidas and sold LAND to financial institutions such as HSBC.

SAND total market cap at $1.06 billion on the daily chart | Source: TradingView.com

Crypto & Metaverse Going Stronger Despite Market Turmoil

Lionsgate’s Executive Vice President and Global Head of Live, Interactive, and Location-Based Entertainment, Jenefer Brown, commented on the innovative partnership:

“We’re thrilled by the new possibilities our strategic relationship with The Sandbox will offer our community.”

The bulk of cryptocurrencies have not been left behind as crypto markets continue to undergo a precipitous downturn.

In fact, cryptocurrencies with metaverse support, such as The Sandbox and Decentraland, have been in a stronger position as Metaverse and NFTs continue to gain popularity.

Suggested Reading | Ethereum Drops Below $950 On Uniswap Overnight – Here’s Why

Featured image from Actu Crypto.info, chart from TradingView.com

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Hester Peirce criticizes lack of legal clarity for crypto

Hester Peirce criticizes lack of legal clarity for crypto

The crypto sector may be maturing, but regulatory clarity around the treatment of digital assets continues to remain cumbersome. 

This was recently highlighted by Commissioner Hester Peirce — also known as the United States Securities and Exchange Commission’s (SEC) “crypto mom” — in remarks she made at “The Regulatory Transparency Project Conference on Regulating the New Crypto Ecosystem: Necessary Regulation or Crippling Future Innovation?”

Peirce began her speech by emphasizing the importance of “regulating the new crypto ecosystem.” While this may be, Peirce also noted that the crypto industry is still in search of an actual regulator. She said: 

“A bipartisan bill announced last week attempts to answer that question. Some people in the crypto industry are celebrating the allocation of certain authorities to the Commodity Futures Trading Commission (CFTC) instead of the Securities and Exchange Commission. This view is likely rooted in a disappointment that the SEC has not used more proactively the authorities it already has to sensibly regulate crypto.” 

After noting this, Peirce added that she is “hopeful that we can change course and use our existing and any prospective authorities wisely.” Yet, before explaining how this may be accomplished, Peirce was quick to point out that her criticisms on topics such as the denial of a Bitcoin (BTC) exchange-traded product (ETP) are targeted at the SEC Commission rather than the staff. “The staff appropriately is following the Commission’s lead, and the Commission has not been leading well,” she remarked.

Regulatory matters for crypto industry

While a number of digital asset bills have been passed this year, the first half of Peirce’s speech focused on the approval of a spot Bitcoin ETP in the United States, which she mentioned is the question she gets asked about most. While spot ETPs have successfully launched in other regions such as Europe and Canada — which saw 1 billion Canadian dollars in assets under management a month after its launch in 2022 — the SEC has continued to push back on this offering. 

Unfortunately, Peirce remarked that she still “has no idea” when the SEC would approve a spot Bitcoin ETP, noting that “the Commission has added crypto-specific hurdles to what used to be fairly straightforward processes for approving these pooled investment vehicles.” Moreover, while Peirce is aware that the Commission’s resistance to a spot Bitcoin product is difficult to understand, she noted that the Commission has “determined to subject anything related to Bitcoin.”

Indeed, while the U.S. crypto ecosystem continues to push forward, industry experts are still left pondering whether a spot Bitcoin ETP will soon be approved. Eric Balchunas and James Seyffart, an exchange-traded fund (EFT) analyst for Bloomberg, recently said that if crypto platforms fall under the SEC’s regulatory framework, a spot ETF may occur in mid-2023.

However, the bipartisan crypto bill, also known as the “Responsible Financial Innovation Act” that was introduced in the United States Senate on June 7, 2022, has yet to determine if the SEC or CFTC will be responsible for the allocation of digital assets.

Regardless, the push for a spot Bitcoin ETP remains a strong-willed battle, especially for digital asset management firms like Grayscale Investments. Michael Sonnenshein, CEO of Grayscale, recently said that the firm is gearing up for a legal fight if Grayscale’s Bitcoin spot ETF is denied by the SEC.

Shortly after this disclosure, Grayscale hired Donald B. Verrilli, a former U.S. Solicitor General, to join the firm to help push for a Bitcoin spot ETF. During a press conference at Consensus 2022, Verrilli went into detail about his plans to convince the SEC to convert Grayscale’s Bitcoin Trust into a spot-based ETF. 

According to Verrilli, the SEC’s approval of a Bitcoin futures ETF proved to be consistent with U.S. Security Laws, demonstrating that there was no significant underlying risk or fraud and manipulation. As such, Verrilli believes this created a situation where the approval of a Bitcoin spot ETF should be treated similarly to that of a futures ETF. He said:

“The Administrative Procedure Act is a federal statute that regulates the conduct of all federal agencies, including the SEC. It sets out rules about what kinds of procedures agencies have to comply with. One of the most fundamental of these is that the agency not be ‘arbitrary and capricious.’ There is a common sense understanding that it’s arbitrary and capricious to treat cases that are alike in a different manner, and that is what the problem is here for not granting approval of a spot ETF.”

Recent: Blockchain’s potential: How AI can change the decentralized ledger

Peirce further explained in her remarks that the SEC allowed futures-based Bitcoin ETFs to begin trading in October 2021, saying:

“Enabling the change was a clear signal from Chair Gary Gensler, who pointed to the 1940 Act protections, along with the CFTC’s oversight of the futures markets, as a key basis for his comfort with such products. These funds proved popular, but demand for a spot-based product remains because futures products are more expensive to manage and may not as closely track the spot price.” 

Peirce elaborated on the importance of a spot ETP, noting that this type of product “could enable retail investors to gain exposure to Bitcoin through a securities product that, because of the effective ETF arbitrage mechanisms, likely would track the price of spot Bitcoin closely.” She added that it would likely be inexpensive to manage such a fund, while sitting “conveniently in an investors’ brokerage account alongside other securities.” 

In addition to the approval of a Bitcoin spot ETP, regulatory clarity around stablecoins is becoming more important than ever before. This has become the case mainly due to the recent collapse of the Terra ecosystem. Senator Pat Toomey, the ranking member of the Senate Banking Committee, told Cointelegraph that the Terra collapse influences legislation in the sense that it serves as a “wake-up” call to the federal government.

“My own view is that algorithmic stablecoins should be treated separately from fiat-asset backed stablecoins. They are totally different creatures,” he said. However, Toomey added that there is currently no regulatory regime for asset-backed stablecoins. Yet, he believes this is important to establish, noting that stablecoins backed by traditional instruments like cash and securities plug into the conventional financial system.

Given this, it’s important to point out that Toomey recently drafted a regulatory framework for stablecoins, known as the Stablecoin Transparency of Reserves and Uniform Safe Transactions Act, or TRUST Act. This framework proposes that digital assets be identified as “payment stablecoins,” or a convertible digital currency used as a medium of exchange that can be redeemed for fiat by the issuer. While the TRUST Act remains a framework, Toomey mentioned that stablecoin regulation might appear at the end of 2022. 

Shedding light on this, Kevin O’Leary — venture capitalist and Chairman of O’Leary Ventures — told Cointelegraph that while the bipartisan bill sponsored by senators Cynthia Lummis of Wyoming and Kirsten Gillibrand of New York addresses stablecoin regulation, he thinks that the frameworks proposed by Toomey, along with the Stablecoin transparency ACT sponsored by Senator Bill Hagerty, will likely pass first:

“Both of these are the same in the sense that they only contemplate stablecoins. In terms of regulation, these suggest that stablecoins open themselves up for an audit every 30-days, and that no asset inside these tokens can be there longer than a duration of 12-months.”

According to O’Leary, this is a money-market strategy. He added that Circle’s USD Coin (USDC) stablecoin hasn’t broken its U.S. dollar peg, even with recent crypto market volatility and the Terra collapse. “There is a lot more promise today from something backed 100% by the U.S. dollar than there is from something algorithmically backed.” 

Enforcement actions short-cut regulatory process 

According to Peirce, the lack of regulatory clarity within the crypto ecosystem has proven that the SEC Commission requires a more productive path to regulation. “The Commission’s reluctance to approve a spot Bitcoin ETP is of a piece with its more general reluctance to build a regulatory framework for crypto using standard regulatory processes,” she stated in her speech. 

As such, Peirce pointed out that the SEC has “cobbled together a regulatory framework through enforcement actions.” Peirce demonstrated this by referencing the BlockFi and SEC settlement that took place in February 2022.

She noted that the SEC laid a foundation for BlockFi to register under the Securities Act, which, if successful, could likely become the standard for regulating crypto lending. While notable, Peirce explained that a better approach would have been to first identify crypto lending as implicating the securities laws and to then invite lenders and other members of the public involved with the case to discuss an appropriate path forward.

Toomey also mentioned that SEC Chair Gensler has been “pushing the limits of authority,” mentioning this last week during his press conference at Consensus 2022:

“I also think he has claimed that virtually all crypto assets are securities without explaining how and why that is so. This is not reasonable because it creates concern about an enforcement action without someone fully understanding what will result in enforcement action and what won’t. Regulation by enforcement is a terrible approach.” 

Optimism for change 

Given crypto’s current regulatory environment, it’s notable that Peirce concluded her speech on a high note, remarking that she is “optimistic that we can change course,” as long as both investors and the SEC take a more proactive approach. 

Although this “approach” remains rather vague, some examples of how this may take shape have come to fruition. For example, O’Leary explained that WonderFi Technologies, a decentralized finance (DeFi) platform, will become the first Canada-regulated digital asset exchange to be listed on the Toronto Stock Exchange (TSX).

Recent: Regulations and exchange delistings put future of private cryptocurrencies in doubt

“TSX has never listed a crypto exchange before, but invited WonderFi to list because they are fully compliant and there is institutional interest in the sector,” he said. O’Leary also mentioned that he believes cryptocurrencies will become the twelfth sector of the S&P 500 over the next decade because of the potential digital assets provide, such as reducing high fees and speeding up financial services in various economic sectors.

All things considered, the listing of WonderFi on the TSX is important for U.S. regulators because it demonstrates how investors can work with regulators to make strides in the industry. O’Leary also mentioned that G7 country regulators talk to each other daily, noting that he thinks the SEC views advancements in Canada as potential use cases that may work in the United States:

“Regulators in Ontario allowed the first Bitcoin and Ethereum ETF. If the SEC didn’t approve this, the Ontario Securities Commission never would have allowed this. The Ontario Securities Commission is proving to other jurisdictions that these products can be regulated and issued.” 

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Blockdaemon goes live with its most advanced blockchain API suite: Ubiquity V1 » CryptoNinjas

Blockdaemon goes live with its most advanced blockchain API suite: Ubiquity V1 » CryptoNinjas

Blockdaemon, the blockchain node * infrastructure tooling platform, today announced the launch of Ubiquity V1, a new and improved version of its Ubiquity API suite.

Ubiquity V1 replaces previously used Beta version V2 and V3 endpoints. After August 12th, 2022, these old Beta version endpoints will no longer be available.

Unifying numerous improvements that have been made to the API suite, Ubiquity V1 produces a single, seamless user experience. The Blockdaemon blockchain engineering team has revamped Ubiquity to provide a stronger blockchain foundation than ever before.

Ubiquity is a core pillar of Blockdaemon’s complete ‘node stack’ – which connects businesses and devs to blockchains with one single integration.

How Will Ubiquity V1 Benefit Users?

Enhances Filtering Capabilities

Ubiquity V1 will allow for enhanced filtering capabilities. Specifically, there will be a greater ability to add filtering of different transactions going forward across chains such as BTC, LTC, and BCH.

Additionally, balances are all supported in Ubiquity V1.

Reduces Latency

With this iteration, Blockdaemon reduces API latency for users. This is achieved by taking a standardized endpoint approach across all protocols Ubiquity serves.

By reducing latency, Blockdaemon’s engineers further empower customers to build highly performant solutions based on the Ubiquity API.

Better UTXO Handling

UTXO is the accounting model for many of the world’s most popular cryptocurrencies. Ubiquity V1 will allow better handling of UTXO-based protocols.

This includes Litecoin, Bitcoin Cash, and Bitcoin. All of these are currently supported by Ubiquity.

Improved Usability

With this update, Ubiquity V1 ensures that every supported protocol has the same format.

Before this, ETH and BTC stood different. By streamlining the formats across all protocols, Blockdaemon engineers have designed a better user experience for developers.

V1: How to Get Started

All existing Ubiquity users are required to migrate integrations to V1.

To do this, change the API version number in the Ubiquity endpoint calls from the previous version (either V2 or V3) to V1. This must be done before the old versions are deactivated.

This change must be made to the Blocks, Transactions, and Account endpoints. After migrating the new code base to the new V1 format, users will enjoy all the benefits of Ubiquity V1 at no extra cost.

“For years, Blockdaemon’s engineers have crafted the best blockchain API possible. Our newest Ubiquity V1 iteration marks a new step forward for our gold-standard API. Soon, Ubiquity users will benefit from a better API experience.  By running Ubiquity V1, your services will ensure smooth and continuous performance, bolstered by a fully maintained, supported API suite. We are proud to roll out this exciting update. It is now available for all Ubiquity customers.”
– The Blockdaemon Team

For more information, see the Ubitquity Documentation.

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How to Stake on Coinbase [The Ultimate 2022]

How to Stake on Coinbase [The Ultimate 2022]

Millions of investors worldwide enjoy the income created through staking rewards, an income paid to crypto owners who help regulate and validate a cryptocurrency’s transactions. Many DeFi protocols offer great incentives for those who stake cryptocurrency tokens and lock them into risky smart contracts by offering interest on investment and governance tokens.

To earn rewards, you have to participate in staking. The Coinbase staking reward system for eligible cryptocurrency lets you accumulate more coins as the Coinbase algorithm optimizes staking opportunities.

Coinbase homepage

Read on to learn how to stake on the Coinbase exchange to increase your staking rewards significantly, choose the safest crypto assets, and more.

Let’s get started!

Consensus Mechanism

In a centralized system, like a DMV database, a central authority controls all the possible data and updates and is in charge of maintaining genuine records.

Conversely, decentralized systems, for example, blockchain networks, work without any single authority. Public blockchains operate as self-regulating systems by involving contributions from millions of participants globally who verify and authenticate transactions occurring on the blockchain. To ensure that all the transactions occurring on the network are genuine and that all participants agree on a consensus on the status of the ledger, these publicly shared ledgers need an efficient, fair, real-time, functional, reliable, and secure mechanism.

The mechanism that performs this important task is the consensus mechanism, which refers to a set of rules used to achieve agreement, trust, and security across a decentralized computer network.

Proof-of-Work (PoW) and Proof-of-Stake (PoS) are two of the most prevalent consensus mechanism algorithms, each of which works on different principles.

Proof-of-Work (PoW)

PoW is a common consensus algorithm that requires a participant node to prove that the work done and submitted by them qualifies them to receive the right to add new transactions to the blockchain. PoW is used by the most popular cryptocurrency network like Bitcoin. However, Bitcoin’s mining mechanism requires high energy consumption and a longer processing time, which raised a lot of controversy against it.

Proof-of-Stake (PoS)

PoS is a low-energy consuming alternative to the PoW algorithm, in which staking is used to validate transactions. It involves allocating responsibility in maintaining the public ledger to a participant node in proportion to the number of virtual currency tokens it holds.

In short, anyone holding a required number of coins can earn staking rewards and participate in validation, i.e., verify transactions as needed. As a result, crypto holders often choose to stake coins in the hope of earning interest instead of trading them.

How Does Staking Work

Staking is only applicable to blockchains that utilize the PoS consensus mechanism. Those who stake their crypto in a PoS blockchain are called validators. Validators provide value to the network by locking assets for an agreed-upon ‘staking period’ and earn rewards in return. PoS validators are selected based on the higher number of staked coins.

Staking pools

Individuals can start staking if they have enough assets needed to become a validator on the blockchain network. However, they can use staking pools if they want to participate in the staking activity without having to stake large amounts of a crypto token. A staking pool is a tool allowing stakeholders to pool in their tokens to give the staking pool operator a validator status and earn staking rewards for their computational resources’ contributions.

For example, staking on the Ethereum Network requires 32 ETH tokens, which equals approximately $40,000 and might be challenging for the average investor.

Mining Vs. Staking

The main difference between mining and staking is the underlying consensus mechanism used to validate transactions. Mining is used for PoW, and staking is used primarily for PoS.

Here are some of the differences between mining and staking:

Miners solve complicated mathematical puzzles. Certain nodes validate new blocks by locking up their funds.
The first miner to solve the puzzle gets to add a new block to the chain. Nodes validate a new block by locking up native tokens in a smart contract.
Mining requires specialized equipment, using up a lot of energy. Staking requires fractions of PoW energy, saving 99% of energy consumption, according to Vitalik Buterin.
More work (computational power) equals a higher chance of getting rewarded. More tokens staked equals a higher chance of getting selected to validate new blocks and earning rewards.
Mining vs Staking

How to Choose a Staking Platform

Staking rewards might promise easy money, but any trader should take extra care before choosing a staking platform. Making the wrong choice could result in losing staking rewards and, in some cases, the staked crypto as well. So here are some points to consider while making the decision:

  • Do Your Own Research
    Take the time to do proper research before trusting your funds to a staking platform. Scammers are not uncommon, so never take the founder’s word as the only basis for your decision.
  • Understand How Crypto Staking Works on Each Platform
    Read the platform’s terms and conditions carefully. Many issues are easy to overlook, such as: Is the wallet available without internet access? What is the minimal staking amount? Does the staked crypto have to go through a cooling period before it can be unstaked?
  • Don’t Chase the Highest APY.
    High returns don’t equal safety. Take your time to choose a platform you can trust based on its experience, reputation, users’ reviews, and the possibilities to earn interest. Be careful and don’t chase the highest possible annual percentage yields or rewards without considering other factors.

We hope this Coinbase review by CoinStats might help you make an informed decision. You can also learn how to benefit from the system with articles like What Is DeFi.

Coinbase Staking

Coinbase is a secure, centralized platform for staking crypto that has been around for a decade. Coinbase features a mobile app, making staking on the go more convenient. However, business accounts are not eligible for earning rewards on Coinbase.

Let’s take a closer look at Coinbase staking and the rewards and tokens available for traders wishing to stake crypto.

How Coinbase Staking Works

First and foremost, you should create a Coinbase account to stake on Coinbase. The process is straightforward, and it takes a few mouse clicks and basic info to get started.

While going through a KYC (Know Your Customer) verification process is not mandatory for all users, Coinbase requires KYC verification for crypto staking.

Here is a short step-by-step guide to make things easier:

  • Create a Coinbase account.
Coinbase sign up page
Coinbase sign up page
  • Purchase major cryptos like Bitcoin (BTC) or Ethereum (ETH) using your bank account.
Bitcoin price page on Coinbase
Bitcoin price page on Coinbase
  • Swap the BTC or ETH for the crypto you want to stake on Coinbase.
  • Stake your tokens and earn rewards.
Coinbase staking page
Coinbase staking page

Read on to learn more about the specific rewards and distribution schedules each token has to offer. Additionally, Coinbase suggests bearing in mind a few essentials.

Essentials to Keep In Mind

  • You might need to agree on specific terms and conditions to start staking some tokens. Read those conditions carefully.
  • Users maintain full ownership of their staked crypto; however, Coinbase “may or may not” replace the staked ETH tokens, i.e., ETH2, in case of a slashing incident. The platform provides additional information on the matter.
  • Coinbase retains the right to withhold a small amount of certain assets with “lockups at the protocol level.” The precaution is to ensure a user has liquidity and can cash out the crypto as needed.
  • The platform charges a commission on all staking rewards. So, before staking cryptocurrency, make sure you read the User Agreement carefully, as it specifies all the possible fees and commissions beforehand.

Eligibility For Staking Rewards

Here are the main requirements for staking crypto on Coinbase:

  • KYC verification: Each needs to have their identity verified.
  • A minimal balance is customized for each crypto.
  • The minimal balance can either be maintained on Coinbase or transferred from another wallet.
  • Rewards are not available on Coinbase Pro, as opposed to Coinbase.com.

Tokens Available for Coinbase Staking

Currently, crypto investors stake Algorand (ALGO), Cosmos (ATOM), Ethereum (ETH), Tezos (TXZ), and Cardano (ADA) on Coinbase.

Cryptocurrency Minimum Balance Needed Rewards Payout Rate
Algorand (ALGO) 0.01 ALGO Quarterly
Cosmos (ATOM) 0.0001 ATOM 7 days
Ethereum (ETH) No minimum balance Daily
Tezos (XTZ) 0.0001 XTZ 3 days
Cardano (ADA) $1 worth of ADA 5 days

Rewards for Each Eligible Token

APY % for staking coins on Coinbase
APY % for staking coins on Coinbase
  • Algorand (ALGO) shifted to a new reward model in 2022, which distributes the appropriate rewards quarterly or every 3 months instead of a daily system.
  • Cosmos (ATOM) distributes the first payment within 7-14 days and every consecutive reward within 7 days.
  • Ethereum (ETH) will credit the first reward after 14 days and daily reward snapshots afterward.
    NOTE: Ethereum Network has yet to transition to Proof-of-Stake fully; therefore, Coinbase issues the following warning on ETH staking:
    “ETH2 staking rewards will be reflected in your account under Lifetime Rewards and will be updated regularly. At this time, staking rewards won’t be added to your overall staking balance, and you won’t be able to access them.”
  • Tezos (XTZ) takes approximately 35-40 days to issue the initial reward for staking XTZ and 3 days for every consecutive reward.
  • Cardano (ADA) takes 20 days to issue the initial reward and 5 days for each consecutive reward.

The list of assets might change as the platform grows. All the changes are typically reflected on the Coinbase website and Coinbase mobile app.

Risks and Rewards of Crypto Staking

While staking cryptocurrencies is a rewarding endeavor, each trader should be fully aware of the risks it poses on any platform. So let’s talk more about the advantages and disadvantages involved in staking.


Coinbase crypto staking rewards
Coinbase crypto staking rewards
  • Passive income generation
    There’s nothing wrong with storing your crypto, hoping for price appreciation. Also, swapping one crypto for another is a no-brainer if you feel the alternative would serve you better. However, staking generates more rewards than the usual price appreciation.
  • Easy and quick
    Staking is a quick and straightforward process. The starting amount can also be relatively small if a trader enters a staking pool instead of being a sole validator.


  • Crypto prices are highly volatile, and price fluctuations could lead to a loss of funds. Use crypto portfolio trackers to keep up with the changing prices.
  • The smaller the coin, the higher the volatility. This is why some smaller cryptos offer higher APYs. In other words, you adopt a high-risk/high-reward strategy while staking smaller cryptocurrencies that might not be acceptable for all traders.
  • The staking process requires locking your funds for a certain period. If the asset depreciates during this time, you won’t be able to repair the damage.

Frequently Asked Questions

Can I trade or send tokens while they’re passively earning rewards?

Cashing out should be an option in case of crypto staking. However, it might be subject to several factors, including your general transaction history, account history, and banking history.

Occasionally, cash-outs and trades may be delayed while investors wait for Coinbase to unlock the funds in question. If the delay continues, each trader will get a notification on Coinbase.com and via the app or email.

Can I earn rewards while using a Coinbase vault? 

Yes, storing funds in a Coinbase vault can earn you rewards. However, that’s only the case if the crypto in question is eligible for rewards. Read above for a complete list of tokens available for staking on Coinbase.

Note: Storing ETH2 or ADA in a vault will NOT earn rewards at the moment.

Does the estimated reward equal the actual payout?

Your Coinbase account reflects an estimate of a possible reward based on the network’s description. However, the network’s actual distribution might differ from the estimate. The estimation is based on Coinbase’s prior staking performance for that cryptocurrency. 

Will the reward rate be constant? 

The reward rate can fluctuate depending on various factors primarily set by the protocol. Other factors influencing the rate include validator performance, amount of staking, inflation of savings rates, etc.

Are rewards guaranteed?

The Coinbase platform does not guarantee any staking rewards to any individual customer over time.

Are rewards from staking considered a taxable event?

Coinbase is subject to U.S. taxation laws, so U.S. customers, subject to U.S. tax reporting, must report their earnings from staking rewards. The Internal Revenue Service’s 1099-MISC is eligible for rewards over $600.

What is the Annual Percentage Yield, and how is it calculated?

Annual Percentage Yield (APY) is the percentage you get on top of the account as a reward for staking your funds, calculated annually. Also, the APY is a projection based on historically relevant calculations. Coinbase specifies that this rate is “set by the applicable asset protocol,” and Coinbase itself does not set, control, or influence it in any way.

Each network employs its own reward system and its own APY. However, as mentioned, Coinbase charges a commission on each transaction. All the details can be found in the user agreement.


Hopefully, by now, you have the answer to the question: How to stake on Coinbase? Staking is easy, but it carries substantial risks to consider. Even on the safest platform in the market, staking can still result in a loss of funds due to a token’s price depreciation.

However, amazing rewards are offered for staking the five tokens available on Coinbase.

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