RE: Circle buys Poloniex for roughly $400 million
This further supports many thoughts that Wall Street has been playing both sides like the good old trading days (similar to Junk Bonds). Slam the asset class you want to get involved in, to buy cheap and to go long, establish strategic positions and then formally support the asset class through M&A, cap markets, market making (legitimacy/liquidity), research/analysis (recommendations) and long term investors (individuals/ investor funds). We have heard that prop desks have been going long crypto. Now with this acquisition, GS is clearly supportive and indirectly involved (due to regulatory issues, they should not directly own, etc.) . Another step towards legitimacy. Lets now see what JPM, CB and the others do. I upvoted to rank my comment higher for your thoughts.
Those are some pretty good thoughts. Goldman may not like the idea of crypto, but they like making money even more, so they will follow wherever money can be made.
Quite true. GS will take all sides of a transaction!
Ironically, GS senior strategist global investments came out with a bubble prediction --> Yesterday!
https://www.facebook.com/goldmansachs/videos/10155852419177247/
As they say, watch what they do, not what they say.
Interesting thing here is now we can put down a valuation for a U.S.-based exchange based on their volume. Poloniex had $152 million in volume last 24 hours vs Kraken $375 and Coinbase/GDAX $450 million. So you could argue Coinbase is worth 3x of Polo and therefore $1.2 billion.
Great points and likely get a greater multiple given their sponsors and that they are US based. It's def starting.
Its crappy news to hear the Shadow government Rothchilds owners of GS are getting into the crypto, perhaps to launder their dirty money?
Its good and as you note, its bad. They need to keep an arms-length given all the regulatory issues. My sense is that they will utilize it for private client investments and assess the regulatory and tax issues as things become more formalized globally. the beauty is that they can't corner this market, even with the other big banks.