How the Ethereum-Based Ampleforth’s 50% Crash Shows DeFi Investing Risks

The DeFi craze may have finally gone too far, leading investors into disaster as some top industry analysts had forewarned. Ampleforth, an altcoin that recently flash pumped by over 700,000%, just collapsed by over 70% wiping out investor’s gains and then some. The fast rise followed by an abrupt crash underscores the potential downside risk of decentralized finance, now that the upside as officially ended. Decentralized Finance Enters Drawdown Phase Following Bitcoin and Ethereum Rally At the start of 2020, skyrocketing interest in decentralized finance caused Ethereum to close seven…

Partner at $500 Million Fund Explains Key Criteria For Investing in Startups

Partner at Initialized Capital Brett Gibson revealed the main criterias used by his VC firm to invest into early stage startups and shared his views on the most promising products on the market. Initialized Capital invests in early-stage companies before they get to product/market fit, which means they still need to develop a product that meets the needs for the market. On that stage, Initialized Capital looks at the start up founders as the main criteria for investing. “Before you actually know what the product is and what market exactly…

Wall Street Firms Advise Clients Against Investing in Crypto, Says Wealth Manager

JPMorgan Chase and Goldman Sachs are advising their clients against Bitcoin (BTC), according to one American wealth manager.  Adam Pokornicky, chief operating officer at Digital Asset Investment Management (DAIM), a U.S.-registered investment advisor for digital assets, claimed that his firm almost lost a client due to the banks’ intervention. In an interview with Cointelegraph, Pokornicky described his client as a lawyer and a “high net worth individual”, adding that they’ve been acquainted for a long time. “He’s both a friend and someone I’ve worked with over the years,” the wealth…

‘Rich Dad’ Author’s Dangerous Investing Tip Will Leave You Laughably Poor

Rich Dad Poor Dad author wants you to buy silver on account of its profitability. If economists are to be believed, the world is likely headed for deflation. Traditionally, precious metals have been used as a hedge against inflation, not deflation. The author of the best-selling personal finance book Rich Dad Poor Dad, Robert Kiyosaki, is discouraging Americans from saving the $1,200 coronavirus stimulus checks they will get from Uncle Sam. Instead, Kiyosaki wants them to purchase commodities such as silver. In a tweet, Kiyosaki urged his followers to “buy…

What’s Stupider Than a Carnival Cruise This Pandemic? Investing in the Stock

Cruise line stocks close their worst month in history with staggering double-digit declines. Carnival Cruises leads the collapse with a 33% decline as its infected ships beg for entry into Florida. Florida’s governor DeSantis will only allow Floridians ashore. And the U.S Coast Guard is advising the ships to stay at sea — even as bodies pile up on board. The industry may never recover from this PR nightmare. And the Trump administration is unlikely to offer a bailout. The cruise industry has once again led the market to new…

Bitcoin Momentum Investing — Does Buy the Dump, Sell the Pump Work?

This week as equities markets plummeted across the globe, Bitcoin (BTC) price also faced a sharp correction. Over the past week Bitcoin price has dropped $1,500 and currently trades at $8,454, a new four week low.  Since the start of the year Bitcoin and most major altcoins showed an impressive gain in price, leading analysts to suggest that a bull-run was brewing for 2020, an idea now being challenged by the current pull-back.  As has been the norm, on one side, there are bullish enthusiasts aiming for sky-high valuations; on…

The Warren Buffett Era of Investing is Over. Elon Musk Proved It

Warren Buffett underperformed the stock market by 20 percentage points in 2019. His classic ‘value investing’ strategy is no longer effective in this new financial market. The rapid rise of innovation and growth stocks like Tesla usher in a new era of investing methodology. For decades, Warren Buffett has been the king of investing. But the strategy that made him the third-richest man on the planet is dead. Buffett underperformed the stock market by 20 percentage points last year. And he missed most of the biggest success stories of the…

Buy the Pump, Sell the Dump — Does Momentum Investing Work in Bitcoin?

Since the start of the year, Bitcoin (BTC) price has been as high as $9,200 — a 2-month high — while going as low as $6,900 on Jan. 3. Bitcoin’s volatility is one of the most frequently discussed issues that arise when investors evaluate Bitcoin as an asset class. However, its volatile behavior is what provides an opportunity for investors to take advantage of the price movements and make a profit.  Following predictions as optimistic as the $100,000 forecast based on the stock-to-flow model, investors may foresee another period of…

More Than Half of Financial Advisors Want Better Regulation Before Investing in Crypto

More than half of financial advisors in the U.S. are too spooked by regulatory uncertainty to initiate or expand their cryptocurrency investments, a new study by Bitwise Asset Management found. The annual survey, released Tuesday, asked 415 advisors a range of questions on their crypto sentiments, including where they think the market is going, how their clients approach crypto, and what it would take for them to invest more in the space. Bitwise found that advisors are increasingly bullish on bitcoin’s future but hesitant to invest in it – for…

Hundreds of Institutions Are Already Investing in Crypto: Coinbase CEO

In an extensive blog post about potential major trends in the cryptocurrency space in 2020, Coinbase CEO Brian Armstrong said that hundreds of institutional investors are already investing in the crypto market. Throughout 2019, with the launch of Bakkt, much of the year’s narrative surrounded the entrance of institutions into the crypto sector. According to the CEO of one of the biggest cryptocurrency exchanges globally, institutions are already actively investing in the emerging asset class and the trend is likely to continue throughout 2020. Will institutions further bolster the crypto…