Bitcoin Moons, Crypto Orbits

Also: Paxos' serious Series C, Amex's crypto investment, 55K new bitcoin miners

December 17, 2020 The top stories in bitcoin, crypto and more – all in one place, delivered daily. By Daniel Kuhn If you were forwarded this newsletter and would like to receive it, sign up here.  Top shelf Bitcoin is on a tear, bring the rest of the crypto market with it. Years of heads down building during the bear market is beginning to pay off – and not just because Bitcoin's price is charting new territory – with tons of funding announcements and business expansion. Here's the story...   Serious Series C Paxos brought in $142 million in its latest funding round. The crypto service provider with big-name clients including PayPal, Credit Suisse, Societe Generale and Revolut now looks to double its workforce and expand its suite of products. "We are not a unicorn," CEO Charles Cascarilla said, but it is a big fish going after a OCC-granted national bank license. Amex invests... In the white-hot institutional trading platform FalconX. Announced Wednesday, American Express Ventures pumped an undisclosed amount into the trading solution with $3 billion in monthly transactions volumes. "Amex Ventures invests in startups as a way to better understand emerging areas of the payments ecosystem," Harshul Sanghi, global head of Amex Ventures, said. Massive buy Core Scientific has purchased over 59,000 state-of-the-art crypto miners, tripling its mining set-up in three southern states. The blockchain and AI infrastructure provider now commands the largest fleet of Bitmain Antminer S19 rigs outside of China. With bitcoin prices moving into uncharted territory, it's likely many mining groups, companies and factories are in profit. Just today, mining marketplace NiceHash has finally reimbursed those affected by a 4,640 bitcoin heist in 2017. Big year. Bitcoin. DeFi. Ethereum 2.0. The biggest trends in crypto this year began to move the needle in the rest of the world. Multi-billion dollar funds bought bitcoin as an inflation hedge. Institutions began discussing the merits of decentralization. And the banking sector warmed to crypto.    CoinDesk's 2020 Year in Review covers the major events, ideas and themes in crypto, and why they matter. The series is a comprehensive collection of op-eds, essays and interviews from some of the biggest names in crypto, published throughout the month. Read more on how 2020 was crypto's biggest year yet. Quick bites BIG BANKS: Few financial institutions have been supportive of crypto but some forward-looking banks are positioned to ride bitcoin's rally. (CoinDesk) RIPPLE NABS: Sandie O'Connor, a JPMorgan vet with ties to the Federal Deposit Insurance Corp. and the Office of Financial Research, for its board. (CoinDesk) COINBASE DIDN'T: Crash during bitcoin's surge, but CEO Brian Armstrong did allude to the exchange's multiple outages this year in a letter warning newbies to play it safe. (CoinDesk) $1B ETH: That's the value of all the ether staked on Ethereum 2.0 right now. (The Block) Most influential Looking to make someone (or just yourself) happy this yuletide holiday? Give the gift of crypto art.   As part of the launch of Most Influential 2020 list, CoinDesk is auctioning off 12 original artworks that accompany this year's list of honorees.   The NFTs were created by leading digital artists including Alotta Money, XCopy, Osinachi, Matt Kane, Sarah Zucker, Yonat Vaks and Olive Allen. They are available at Nifty Gateway and Super Rare (Matt Kane). The artists will donate 50% of the proceeds to charities of their choice, under an arrangement with cryptocurrency donations company The Giving Block.   Learn more about the Most Influential 2020 NFT art auction, running to Dec. 31. The list Who moved the needle on crypto this year? What were the projects that mattered? Who shattered the glass ceiling and broke the mold?   From DeFi to bitcoin's late year surge, 2020 was full of big stories, trends and personalities. We've unveiled CoinDesk's 2020 Most Influential list, a selection of 12 people who helped push the industry forward this year. See who made the list. Market intel Driving bitcoin? Exchange data shows signs of pent-up demand for bitcoin, as the cryptocurrency rallies to new highs. According to data provided by CryptoQuant, there was an unusual spike in the number of stablecoin inflow addresses for all exchanges, an indicator of "extreme buying power," between 13:30-13:40 UTC yesterday. "Looking forward to 2021, we should expect the outsized bids of institutions to have a much greater determining influence on the price of bitcoin and other cryptocurrencies," Artur Sapek, founder of CryptoWatch, said.    Small caps Litecoin's price reached three figures for the first time in 16 months earlier on Thursday. The seventh-largest cryptocurrency by market value soared to $103.19, its highest since Aug. 5, 2019, rallying more than 20% in 24 hours on bitcoin's coattails. It's now up nearly 150% year to date. The rest of the crypto market is likewise in the green.  Monthly review The latest CoinDesk Monthly Review compares bitcoin's November 2020 rally with the asset's market and network performance three years ago and looks at some metrics on the progress toward the launch of Ethereum 2.0. Download the free CoinDesk Research November 2020 Review. At stake Next fun trend (NFTs) Last year when I was helping to put together CoinDesk's Year in Review series I kept hearing about the nascent world of decentralized finance, more popularly referred to as DeFi. Just a melange of decentralized apps (dapps), automated protocols and novel financial tools, DeFi exists to disintermediate traditional financial systems – like insurance and trading pools – from third parties.   At the time DeFi was a billion dollars or so in crypto, a sub-economy of the larger Ethereum-verse. But it exploded into the public consciousness this year. With some $16.2 billion in total value locked (TVL – the amount of crypto pledged to various smart contracts), DeFi drove some of the biggest stories in crypto this year. There were protocols that launched and quickly became unicorns, no shortage of hacks and exploits and now even mergers, acquisitions and copycats. It was big enough for the Financial Times to write an explainer.   This year, as I again assist my indefatigable editor Ben Schiller in putting together CoinDesk's Year in Review 2020, I've tuned my ear to the rumbling of what could be the next big trend in crypto. Unfortunately, it doesn't have a sexy name like DeFi, nor is it a novel field, but non-fungible tokens (NFTs) are the crypto tools the cool kids are talking about.   NFTs are blockchain-based tokens that can represent real-world or purely digital objects. Like bitcoin, they derive their value from cryptographically ensured scarcity, meaning each token is one of a kind and cannot be copy and pasted like, say, a .jpeg. So far, NFTs have mostly been associated with a strange digital art scene, but the technology can be applied anywhere that a digital object can find value in being irreproducible, I'm told. This past year several notable artists have become interested in NFT technology. Sean Ono Lennon, John and Yoko's son, sold an original artwork this week. House musician Guy J sold the rights to one of his songs – for 40 ETH – on the NFT platform Rocki. Meanwhile, rapper Lil Yachty has sold a digital collectible for $16,050. Renowned digital artist Beeple sold a collection of NFTs on Nifty Gateway for a whopping $3.5 million.   It's a wild scene, and if the rumor mill is working it's just getting started. Who won #CryptoTwitter? ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is. Blockchain Bites   A newsletter from CoinDesk   See Previous Editions Copyright © 2020 CoinDesk, All rights reserved.    250 Park Avenue South New York, NY 10003, USA You can manage your preferences here or unsubscribe from all CoinDesk email.