Crypto Biz: Elon Musk: The Ultimate Crypto Tourist

by · August 25, 2022

Elon Musk’s Tesla turned out to be the ultimate paper hands after the electric car maker sold 75% of its Bitcoin (BTC) holdings in the second quarter. I say, good riddance. The cult of personality is not good for Bitcoin, and neither is a technologist who treats the asset as his toy. As far as we’re aware, Musk hasn’t sold any of his personal Bitcoin stash, and Tesla still has an estimated 10,800 BTC on its books. Still, the less we hear about Musk and Bitcoin, the better.

In this week’s Crypto Biz, we chronicle Tesla’s sale of BTC, KuCoin’s fight against fake news, and Cathie Wood’s sale of Coinbase shares.

Tesla reports $64 million in profits from Bitcoin sales

Tesla’s decision to sell the majority of Bitcoin was not as boring as it seemed at first. The company achieved a profit of 64 million dollars on the stock exchange. Aside from selling emissions credits, the electric car maker has routinely struggled to make a profit over the years. In a Form 10-K filing with the United States Securities and Exchange Commission, Tesla disclosed that it may “increase or decrease” its holdings of digital assets over time. Cynical prediction: ESG R&D will probably be the reason Tesla gets rid of its remaining holdings over time.

KuCoin CEO Johnny Lyu Launches “Anti-FUD Fund”

Crypto exchange KuCoin has been on the receiving end of a nasty smear campaign from a self-styled whistleblower tweeting about the company’s alleged insolvency. KuCoin CEO Johnny Lyu has not only refuted claims that his company was facing a liquidity crisis, but he has also launched an “Anti-FUD Fund” to track down and take legal action against so-called “FUDers”. The Twitter account responsible for the misinformation appears to have been deleted.

Cathie Wood sells Coinbase shares amid insider trading allegations

Cathie Wood’s ARK Investment Management appears to be distancing itself from Coinbase amid allegations that the cryptocurrency exchange was involved in insider trading. After holding nearly $9 million in COIN shares at the end of June, ARK unloaded more than 1.4 million shares over the next month. According to Bloomberg, Coinbase is being investigated by the SEC for their potential involvement in a former product manager’s insider trading scheme. Separately, and on an unrelated note, Coinbase is also being investigated for allegedly selling unregistered securities. Meanwhile, you won’t believe how badly COIN stock is down.

3AC: A $10 billion hedge fund has gone bust with founders on the run

We’ve spent the last few months talking about the Three Arrows Capital debacle. The firm, which also went by 3AC, was honored for its investments, trading skills and insight. The cult of personality around the founders created an image of a company that could do no wrong. Then it all came crashing down. While we wait for documentarians to make a film about 3AC’s downfall, Cointelegraph has put together a lengthy exposé about the whole ordeal. I’m talking about timelines, analysis and information about who owes what to whom.

Don’t miss it! Why is the FOMC meeting important for crypto?

Have you ever wondered why investors keep talking about the “FOMC?” Why are crypto people suddenly so enamored with this four-letter acronym? In this week’s market report, I break down exactly what the FOMC is and why investors need to monitor it. Consider it a crash course on the most powerful organization in the world (yes, really). You can watch the full replay below.

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