Day: March 9, 2021

Coinbase Is Said to Be Valued at $90 Billion in Private Auction

Coinbase Is Said to Be Valued at $90 Billion in Private Auction

Coinbase Global Inc. shares changed hands at a roughly $90 billion value last week, in what could be the final chance for investors to trade its private stock before the cryptocurrency exchange goes public, according to people familiar with the matter.

That valuation is based on $350 a share, the price the stock was trading at on the Nasdaq Private Market auction that ended last Thursday, the people said, asking not to be identified because the information was private.

Thursday’s auction was the last time shares are being sold on the Nasdaq Private Market before Coinbase goes public in late March, the people said.

Some of the shares had traded at $375 earlier in the auction, which would roughly value the company at close to $100 billion, they added.

Private trading is more restrictive and volumes are usually smaller than in the public markets, and not a perfect picture of the company’s value. The Nasdaq private market is a division of Nasdaq devoted to trading shares in companies before they go public.

Ahead of the direct listing, the Nasdaq still needs to set a reference price for investors, which is partly based on private trading activity. These private trades aren’t necessarily indicative of where the stock will actually trade.

Source – Yahoo News

Publicly-listed beauty apps maker Meitu buys $40 million in BTC, ETH

Publicly-listed beauty apps maker Meitu buys $40 million in BTC, ETH

Meitu, a Chinese photo retouching app listed in Hong Kong, has announced it purchased $40 million worth-of bitcoin and ethereum.

The firm said in disclosure Sunday on the Hong Kong Stock Exchange that it has bought 15,000 units of ETH and 379.12 units of BTC in open market transactions at an average cost of $22.1 million and $17.9 million, respectively, on Friday.

“These purchases were made pursuant to a cryptocurrency investment plan previously approved by the board of directors, under which the Group may make a net purchase of up to US$100 million worth of cryptocurrencies, financed by its existing cash reserves other than any remaining proceeds from the Company’s initial public offering,” Meitu said in the announcement.

Founded in 2008, Meitu is one of the most popular mobile apps in China with a market capitalization of HK$11.7 billion ($1.5 billion). As of June 2020, Meitu held 2.5 billion yuan ($384 million) in cash and liquid financial reserve and had 295 million self-reported monthly active users.

Its chairman and founder Cai Wensheng is also a known pro-bitcoin figure who said in 2018 in an interview that he personally amassed 10,000 BTC at the time.

The Sunday announcement, with a signature penned by Cai, said Meitu’s board believes that blockchain technology has the potential to disrupt the existing financial and technology industries, similar to what the mobile internet has done to the PC internet and many other offline businesses.

In this context, the firm believes that “cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management.”

Meitu is also one of the first Chinese publicly listed companies that have joined the ranks of Square, Tesla and MicroStrategy in holding bitcoin as part of its treasury management strategy.

“[Bitcoin] has several features that enable it to be a good alternative store of value, such as being limited in supply, its exchangeability into fiat money or goods and services, portability, and its potential to act as an effective hedge against depreciation of fiat currencies due to aggressive increase in money supply by central banks globally,” Cai penned in the release, adding:

“Some of these features potentially even render Bitcoin as a superior form to other alternative stores of value such as gold, precious stone and real estate. Being an alternative store of value, its price is primarily a function of future demand that is driven by consensus of investors and the general public.”

As regard to its investment in ETH, Meitu outlined to its shareholders various application activities including finance, games, social media and art and collectibles that have been built on top of the Ethereum protocol.

“The Group is currently evaluating the feasibility of integrating blockchain technologies to its various overseas businesses, including but not limited to launching Ethereum-based dApps, as well as identifying suitable overseas blockchain-based projects for potential investments,” Meitu said and hence “purchasing Ether is therefore a logical preparation for both initiatives.”

Source – The block crypto 

Amazon Now Offering to Run Ethereum Nodes for Developers

Amazon Now Offering to Run Ethereum Nodes for Developers

Amazon Web Services (AWS) has just made it easier for developers to run Ethereum nodes using its cloud services, adding the Ethereum blockchain to its Amazon Managed Blockchain services, according to an announcement on Tuesday. It’s a move many developers had long been clamoring for.

Currently, around 57% of Ethereum nodes are hosted on cloud services, with 40% of those hosted nodes using AWS. This implies that around 19% of Ethereum nodes are run on AWS already.

But this is the first time Amazon has provided its own Ethereum management option through its blockchain service, making it easy for anyone to spin up a node “in minutes,” the company touts.
With this new service, AWS threatens the role of Infura, a popular service that runs Ethereum nodes on behalf of crypto companies. (Disclosure: Infura is funded by ConsenSys, which also funds an editorially independent Decrypt). Infura is estimated to be running between 25% and 50% of its nodes on AWS, according to The Next Web.

The purpose of providing a managed software service is that it enables crypto companies to access blockchain data without running nodes themselves. Nodes require expensive equipment to run and can be difficult to interact with. In particular, many crypto services need to access historical data, which requires running an archival Ethereum node—a much bigger and more complex version of its blockchain.
Amazon’s new Ethereum option supports the main Ethereum blockchain, along with two popular testnets (places where developers can experiment with applications before sending them live), Rinkeby and Ropsten. (You can get some testnet Ethereum tokens on the Rinkeby testnet from faucets such as this one.)

The service will automatically monitor the health of the Ethereum nodes and update them when a new upgrade comes out for the blockchain. It will support decentralized finance (DeFi) applications, one of the core Ethereum use cases.

While the service is available in London, Singapore and Tokyo, it’s only available in one region in the US East (N. Virginia) region, which is one of its four US regions.

Source – Decryt.io