COINBASE AND GEMINI HAVE LAUNCHED OFFSHORE DERIVATIVES EXCHANGES
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Pacific Western is the next most likely Domino to fall and if it fails and it'll be the fifth biggest banking failure in U.S history, meaning that this crisis will have set a terrible new record of four of the five biggest banking collapses in U.S history. We are already Beyond 2008 in terms of the total size of this crisis and the dollar value. Much larger more pressure than ever will be on the FED to cut rates or at the very least not raise rates anymore at the next meeting in June. The failures of the next round of banks could be coming hard and fast and it's already looking like plans are being worked on for Mega Banks like JP Morgan, and Bank of America to buy up those coming collapses. It's of course going to make it all so much easier to roll out Central Bank digital currencies when they come.
You either Bank the big Banks or be your own bank and have your money in your wallet. Remember none of this is by accident, the Federal Reserve raised rates knowing full well that more Banks would fail and that the big Banks were already too big to fail are going to get bigger. The Fed's policies have crushed the economy and crushed the banking sector in the USA and it's criminal what they are doing. They're even now calling for the FDIC and the treasury in the USA to guarantee all deposits in the USA. Right now the FDIC only has enough money to cover about one percent of all the deposits. Even then that's only up to 250,000 per account per Bank creating the potential for moral hazard.
Both Coinbase and Gemini have launched offshore derivatives exchanges. They're still keeping their spot exchanges on Shore for the time being but after growing tired of the US Regulators crypto exchanges are starting to say screw it. I think Coinbase could be eyeing up moving into the UK which would be the big news they did this is such a big screw-up on the USA's part and this lack of Regulation. While Coinbase and Gemini haven't shut up shop in the USA just yet they're certainly hedging their bets as you can see right now. They're preparing for the day that may come when it just becomes so unbelievably hard to do business in the USA that they just have to go somewhere else.
Coinbase course landed a license in Bermuda at the end of last month and now just a few weeks later has launched its new derivatives exchange. Coinbase International Exchange is supporting non-us unfortunately just institutional Traders at the moment. Institutions will have access to Futures Trading for Bitcoin and Ethereum and then there's of course Gemini they just launched Gemini Foundation. This is a non-us trading platform for Bitcoin Futures governed by Singapore law. Has gone live in 29 different countries including Singapore, Hong Kong, India Argentina, the Bahamas El Salvador and a whole pile of other platforms though is not yet available to users in the UK or the EU. USA is going to look back on all this stuff in a few years and come to realize how dumb The Regulators were at the time. How big the mistake was losing all these major U.S companies that were the Forefront of the crypto industry and they're being pushed out of the USA. One possible spark of hope though is that U.S. courts have demanded the SEC has only 10 days to issue a formal response as to why they have failed to respond to Coinbase's petition that was asking for Clarity on regulations.
We had two all-time highs this last week for Bitcoin. Bitcoin did hit an all-time high transaction count at 682,000 transactions last week which is awesome and insane at the same time that happened during a bear Market. But that's not the only all-time high, Bitcoin hash rate also hit a new all-time I'm high. The Bitcoin network is stronger and healthier because miners are coming back into the network to chase it after the high spike in on-chain fees. You see 54 of those all-time high transactions were Bitcoin-based NFTs called Ordinals. The NFT seen on Bitcoin exploding right now which is, to be honest kind of cool. I like seeing Bitcoin finally getting on the NFT train. Bitcoin had NFTs way back in the day, they never really took off. Bitcoin-based tokens are not stopping at pictures. We're about to see Bitcoin smart contracts again, we've had some kind of form of that on Bitcoin for a while but this is taking it to the next level. Bitcoin tokens coming out finally, and this is going to create a lot of economic activity on Bitcoin.