fintech

Despite Increased Adoption Of Crypto, Institutional Reservation Remains

FRNT Financial

April 27, 2021

In the past several weeks, Charles Schwab, NatWest, and HSBC have expressed caution over the adoption of crypto. While the asset class has seen accelerated adoption, there remains plenty of institutional reservation.

Recent Lows In BTC Dominance Likely Indicate Speculation In Non-BTC Markets

FRNT Financial

April 26, 2021

After BTC achieved a record high of roughly USD 64,500 on April 14, the asset, along with the broader crypto market, saw an aggressive sell-off. The move was preceded by alt-coin outperformance that added an estimated USD 373 billion to crypto market cap ex-BTC in the past 3 weeks.

Progress Made On RSK Exemplifies Benefits Of BTC Layer-2 Applications

FRNT Financial

April 22, 2021

Recent interest in DeFi applications has mostly been limited to those on Ethereum while upcoming BTC layer-2 applications have largely been overlooked. We review recent progress to RSK, a smart contract blockchain secured by the bitcoin network. 

Anxiety Surrounding New Potential Crypto Regulation Is Likely Overblown

FRNT Financial

April 21, 2021

Fox Business has reported that the Biden administration is developing a regulatory approach for the crypto space. Broad anxiety over new rules is likely overblown and another unlikely major contributor to last weekend's volatility.

Weekend Drop In BTC Hash Rate Likely Due To Coal Mining Accidents In China

FRNT Financial

April 20, 2021

A drop in the BTC hash rate occurred over the weekend with crypto news outlets pointing to coal mining accidents in China as the cause. We believe it was unlikely that the move was a major contributor to the weekend price decline.

Kraken CEO Believes A Regulatory 'Crackdown' On Crypto May Be In Store

FRNT Financial

April 13, 2021

In an interview with CNBC, Kraken CEO Jesse Powell said he believes “there could be some [crypto regulatory] crackdown.” The CEO’s remarks come just ahead of competitor Coinbase’s Wednesday IPO. 

Despite China's Efforts To Limit BTC Development, PayPal Founder Wonders If BTC Is A 'Chinese Financial Weapon' Against U.S.

FRNT Financial

April 12, 2021

Last week, PayPal founder and tech investor Peter Thiel said he wonders “if at this point [BTC] should also be thought of in part as a Chinese financial weapon against the U.S.” Thiel’s remarks don’t reflect the reality of China’s current approach to BTC and crypto. 

Coinbase Q1 Report Shows Impressive Results, But The Firm Describes Future Revenue As 'Unpredictable'

FRNT Financial

April 8, 2021

Coinbase has published Q1 2021 estimated results and an outlook for 2021 as the exchange moves towards an April 14 listing. Coinbase's impressive results rely heavily on trading revenue, but normalized performance, accounting for bear & quiet markets, is unclear.

Stellar Network's Technical Issues Caused Exchanges To Halt XLM Withdrawals Monday

FRNT Financial

April 7, 2021

Despite the technical challenge, XLM’s price didn’t experience any obvious reaction to the news. The episode showcases the seeming propensity of crypto investors to ignore warning signs of technical risk.

Is Profit-Taking To Blame For A Decrease In High-Value BTC Wallets? The Answer May Be More Nuanced Than It Seems

FRNT Financial

April 6, 2021

Last week we highlighted the decreasing number of wallets holding over 10,000 and 1,000 BTC since November and February and have since fielded questions about whether the metric signals profit-taking. We feel the answer is more nuanced and in part highlights evolving characteristics of the asset, such as new custody solutions.