Coinbase a cryptocurrency exchange based in the US at San Fransisco has considered launching an introductory exchange token. The head of institutional sales at Coinbase in Asia announced this news in the month of September 11. Kayvon Pirestani said that this is a very interesting investment to be introduced by Coinbase. He was speaking on a panel at Invest: Asia in a conference held on Wednesday. He added that even though that was not an official announcement, Coinbase is looking forward to venturing not only in IEO but also in Security offering token.
IEOs came up as an alternative version of offering token at the crypto exchange acting as the promoter. This is according to what was previously reported by Cointelegraph. The exchange mainly operates sales as well as vetting the projects plus their investors.
The IEO generally involves issuing of proprietary exchange tokens that are used for token sales among other purposes. According to Kayvon Pirestani, the official announcement of the initial exchange offering will be done in the following few months.
A Japanese crypto exchange was also contemplating launching an IEO platform to help companies raise funds through utility last month.
IEO is already receiving support from major exchanges including OKcoin, Binance, Bitfinex, and Kucoin. Just like ICO (initial coin offering), IEO is another platform that aims to serve as a cryptocurrency tool for cryptocurrency exchange. The exchange is required to handle anti-money laundering (AML) and know your customer (KYC) on behalf of the startups.
According to the announcement made on July 2018, Coinbase has been approved to acquire security firms that have broker-dealer licenses. These are companies such as Digital Wealth, Venovate Marketplace and Keystone Capital Corp. Pirestani confirmed that Coinbase has already acquired broker-dealer license but are still digesting on the acquisition of the licenses.
Pirestani also said that he had noted many are talking about the security tokens but very few are trading. For that reason, Coinbase will wait for a rise in market demand before they kick-off. IEOs led by Binance are becoming popular in 2019 and beyond.
Coinbase Announces its Upcoming Cryptocurrency IRA
There is no time like the present, even in the cryptocurrency industry. Coinbase, a provider of exchange and wallet services, is now entering the IRA game.
This is made possible following a strategic partnership with Kingdom Trust and Regal Assets.
COINBASE KEEPS ADDING NEW SERVICES
A cryptocurrency-based investor retirement account has been of great interest to many, yet few companies provide such a service.
The main purpose of these IRAs is how the cryptocurrency balances are safe from external factors.
Hackers or criminals looking to steal user funds will have a very tough day and ultimately be unsuccessful.
Furthermore, every account created through Coinbase’s IRA will be insured for up to $200m, courtesy of Lloyd’s of London.
For those who are on the fence about investing in cryptocurrencies, this might be the solution they have been waiting for.
Plenty of cryptocurrencies will be supported for these IRAs. The list includes Bitcoin, Stellar, Tezos, DAI, Augur, and several dozen other currencies.
Some notably absent projects include Binance Coin, Monero, and so forth. It is possible more currencies will be added once the service goes live.
Cryptocurrency investing is usually something one should engage in for the long term. An IRA seems to be the perfect vehicle to accommodate those needs.
On the other hand, putting one’s retirement savings into cryptocurrency will always be a risky venture.
These markets are extremely volatile, and there is no guarantee all of the supported tokens will still be around decades from today.
Fake News in Big Tech Lambasted by Former Coinbase CTO
Former Coinbase executive and angel investor, Balaji S. Srinivasan, has taken issue with fake news stories emerging within the tech industry and several reports that completely contradict common industry knowledge.
Srinivasan mentioned two articles in particular — Newsweek’s infamous piece ‘proving’ that Dorian Nakamoto was actually Bitcoin creator Satoshi Nakamoto, and Bloomberg Businessweek’s ‘The Big Hack’ story.
Fake News Identifying Satoshi Nakamoto
In 2014, as its cover story, Newsweek reported that it had discovered the identity of Bitcoin creator Satoshi Nakamoto, which it claimed to be Dorian Nakamoto. The story made explicit statements that Dorian Nakamoto was Satoshi Nakamoto while providing no irrefutable evidence. Dorian Nakamoto even went so far as to crowdfund a lawsuit to clear his name.
Newsweek never retracted the story and even defended the reporting:
“Newsweek stands strongly behind Ms. Goodman and her article. Ms. Goodman’s reporting was motivated by a search for the truth surrounding a major business story, absent any other agenda. The facts as reported point toward Mr. Nakamoto’s role in the founding of Bitcoin.”
‘The Big Hack’
‘The Big Hack’ story published in October 2018 in Bloomberg Businessweek posited that bad actors linked to China had planted small chips in Supermicro hardware, with the intention of spying on some of America’s biggest companies. Among the entities that were described as having been targeted were Apple, Amazon, and DHS.
Like Newsweek’s Dorian Nakamoto story, Bloomberg never retracted or clarified its position on the issue.
Srinivasan pointed to the Gell-Mann amnesia effect, which was conceived by author Michael Crichton. The effect refers to the phenomenon of experts, “believing news articles on topics outside of their fields of expertise,” even after the news article in question has been proven to be factually incorrect or misleading.
Srinivasan departed from Coinbase earlier this year on good terms but continues to work as an angel investor.
Winklevoss Capital, Coinbase Back $1.8 Million Round for Bitski Crypto Wallet
A startup making it easier for developers to put crypto wallets in their applications is announcing a seed round from the likes of Galaxy Digital, Winklevoss Capital and Coinbase Ventures.
Bitski thinks its developer platform can help the crypto sector overcome a key hurdle: For most folks, setting up a wallet is a pain. By having one pre-loaded into, say, your favorite video game, Bitski thinks its single-sign-on wallet can move the needle on mainstream adoption.
“We’re using this money to expand the funnel of people that are building on blockchain,” Bitski co-founder and CEO Donnie Dinch said of the $1.81 million in fresh capital. (The startup’s total fundraise is $3.54 million, including a late-2018 pre-seed round, Dinch said.)
Bitski also announced its product is being used by a pair of game development studios, an ethereum-powered sports betting site and YouNow, the live-streaming platform behind the SEC-regulated props token.
“There are a lot of projects out there that are interesting to the core crypto users but we’re trying to work on things that have broad mainstream appeal,” Dinch told CoinDesk, adding that gaming has been the company’s early focus.
“We’re excited for Bitski to help catalyze the next wave of companies integrating blockchain into their products,” Winklevoss Capital partner Sterling Witzke said in a statement.
The wallet’s simple UX does come with a tradeoff on self-custody, Dinch said, though the bet is most users will prefer to have a third party handling key management for them. All user wallets are stored using hardware security modules (HSMs) in “biometrically-secured” data centers, Dinch added.
Compound protocol founder Robert Leshner, who participated in the Bitski seed round through his Robot Ventures fund, says the startup could be a major on-ramp for new crypto users.
“Public-key cryptography is the bedrock of the growing decentralized application ecosystem – but as it stands, it’s simply too cumbersome and confusing for a mainstream user experience,” Leshner told CoinDesk via email, adding:
“Bitski is a necessary experiment to (re)imagine how we interact with blockchains. They remove the friction and difficulty of wallet management, while preserving security and increasing portability.”
Bitski is currently a four-person team based in San Francisco. Three of the co-founders worked previously on WillCall, a ticketing app acquired in 2014 by Ticketfly.