Investors love now the crypto rollercoaster
May 22, 2021, 10:33 am

crypto

FILE PHOTO: Representations of the virtual currency Bitcoin and Ethereum stand on a motherboard in this picture illustration taken May 20, 2021.

REUTERS/DADO RUVIC/ILLUSTRATION/FILE PHOTO/FILE PHOTO

John McCrank

When Brjánn Bettencourt rolled out of bed on Wednesday morning to find the assets in his cryptocurrency portfolio slammed in their biggest selloff in years, he knew exactly what to do: buy more. "Investing in crypto is not for the faint of heart," said Bettencourt, a 32-year-old photographer in Toronto who has owned bitcoin and ether over the last year-and-a-half to complement his stock portfolio. "I'm looking at this as a serious long-term investment."

This week, cryptocurrencies were buffeted by factors ranging from critical tweets by Tesla Inc CEO Elon Musk to governmental controls in China. The price of bitcoin, the world’s biggest cryptocurrency, tumbled as much as 30% before retracing some losses. It is down some 40% from its highs of the year.

Leveraged positions in bitcoin and ether futures fell sharply last week, said Vanda Research, which tracks retail trades. This indicates that some retail traders probably have folded their tents."(The) crypto bubble has started to unravel and data from different exchanges suggest that retail investors are capitulating," Vanda researchers said.

But other retail investors have been happy to ride the turbulence out or trade around it. "In crypto talk, when stuff like this happens, people say it shakes out all of the weak hands and the people ... who maybe bought because they saw it on the news," said Ethan Lou, author of "Once a Bitcoin Miner: Scandal and Turmoil in the Cryptocurrency Wild West," due this autumn. As retail investors piled into cryptocurrencies, bitcoin surged around 345% in the last year, ether soared 1,219% and dogecoin skyrocketed 15,480%, according to Coinbase data. Crypto-exchange Coinbase said its more than 56 million users accounted for $335 billion in trading volume in the first quarter: $120 billion retail and $215 billion institutional. That compares to $30 billion in total a year earlier, of which $12 billion was retail, the company said.

Retail interest this year also scooped up shares of "meme stocks" such as GameStop, pushing prices through the roof and punishing hedge funds that had sold the shares short. Some retail investors have embraced the wild price swings in hopes of catching some of the next big rally. Users on Reddit's popular WallStreetBets forum have popularized the term “diamond hands” here shorthand for their willingness to hold an asset through thick and thin. INCREASED SCRUTINY

Increased mainstream adoption has drawn the attention of regulators. The U.S. Treasury Department on Thursday called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service. The Federal Reserve said cryptocurrencies pose risks to financial stability. On Friday, China said it will crack down on bitcoin mining and trading activities. Cryptocurrencies have been notoriously volatile throughout their history. Bitcoin plunged 94% in 2011, and dropped 82% between late 2017 and the end of 2018, causing many investors to back away. Lily Francus, however, has tried to take advantage of the big swings. The 25-year-old, who lives in San Diego and works as a quantitative researcher at a crypto hedge fund, first traded cryptocurrencies in 2017, but got out before the price crashed. Then last month she put about 1% of her net worth into various cryptocurrencies, joining a rally she saw as partly fueled by social media hype.

She liquidated her ether and cut her bitcoin position when Musk hosted Saturday Night Live on May 8. She later bought 40% of her ether position back at a lower price.

The Tesla CEO has flip-flopped on whether the electric carmaker would accept bitcoin as a payment, and has often moved the price of dogecoin with his tweets.

"When you see ... people diving into the markets for fear of missing out, that's usually a good time to get out," Francus said.Doug Liantonio, 31, of Deerfield Beach, Florida, said he owns dogecoin and ethereum classic. With dogecoin prices down 50% from their highs, he is waiting for another rally before selling. "I don't think I will wait for Elon's PR stunt for his rocket, that would be too late," he said. Musk recently announced that his company SpaceX will launch a rocket to the moon next year, funded with Dogecoin.

For Bettencourt, the photographer, the ups and downs of crypto are part of its appeal.

Investing in cryptocurrencies “feels like that scary rollercoaster,” he said. “You're riding it up and riding it down and feeling every twist and turn, which to me is exciting and fun.”

Reuters, FRI MAY 21, 2021 / 9:22 PM

Investors love now the crypto rollercoaster

Source Image Reuters

Chinese Communist Party Leadership will maintain in Tibet ‘HANGING BY A THREAD’, SAYS REPORT ABOUT PRINCE HARRY’S RELATION WITH The British ROYAL FAMILY

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.