The Bias That Propels Shiba Inu and Dogecoin

Bitcoin may be the alpha dog of crypto, but for many small retail investors these days, dogecoin and shiba inu are the pick of the litter.

Binance subsidiary WazirX, India’s largest cryptocurrency exchange, suffered outages as traders jumped into the fray, buying shiba inu and stressing out the platform’s servers to the point that trade executions were delayed this past Wednesday. Over half a billion dollars’ worth of trades were done on WazirX that day, the highest of any crypto exchange in India, CEO Nischal Shetty tweeted.

“It basically brought down our exchange,” Siddharth Menon, one of WazirX’s co-founders and its chief operating officer, said on CoinDesk TV’s “First Mover” program Thursday morning. “The kind of active numbers and the active users that we saw in the last 48 hours has actually shocked us. We were not ready for it. We were all ready for the bitcoin move, but we were never ready for shiba inu.”

Menon suspects that there is some amount of unit bias at play. That’s where a novice trader is prone to buy a lot of one kind of cryptocurrency because the price of one unit of it is relatively small compared with, say, bitcoin even though one can buy the same dollar amount in bitcoin as the low-priced coin.

For investors who are dipping their toes in the water with a relatively small amount of money, a low-priced coin can make one feel a little richer. For example, as of this writing, $620 buys 0.01 BTC. On the other hand, it buys about 10 million SHIB.

What the data show

And while some “smart money” is starting to appear to be trading shiba inu and dogecoin, “whales,” or large investors, remain in the more familiar seas of bitcoin and ether.

That can be seen in average trading volume.

Bitcoin and ether average trade sizes are larger than those of dogecoin and shiba inu on almost every exchange. On Coinbase, bitcoin’s average trade size is hovering at around $2,000, while ether trades average $1,600. On the other hand, the exchange sees average trades for dogecoin and shiba inu of roughly $800.

“This suggests price action is mostly retail-driven,” said Clara Medalie, strategic initiatives and research lead at digital asset data provider Kaiko, adding that on Binance, the average trade for bitcoin and ether is about $2,000. That figure is $1,200 for dogecoin and $900 for shibu inu.

“While average trade size isn’t a perfect gauge for institutional investment – most large traders break apart their orders into smaller sizes – we can still observe clear trends that correspond with waves of interest,” she said.

Dog days

Yet the data shows that meme coins face their own cycle, Medalie noted.

“It is interesting to note that average trade size for nearly all assets has increased considerably since the start of the bull run last November,” Medalie said. “With meme tokens such as DOGE and SHIB, we can observe spikes during the initial fervor and then sharp declines once the excitement wears off.”

And all crypto moves at least somewhat together, including how large trades get. “We can also observe that bitcoin, ethereum and doge seem to have similar trend lines for average trade size, strongly correlated to mini-bull runs,” Medalie said, pointing out that trade sizes for all assets spiked right before the May crash.

Meanwhile, meme coins serve another purpose.

Retail traders test out the experience of buying, holding and selling a small amount of cryptocurrency on new platforms by placing different types of orders and seeing how they get filled – or not. While holding $100 worth of bitcoin can be bought just the same, if not more easily, than $100 of dogecoin or shiba inu, it may take newbies a little bit of time to wrap their heads around that concept. What’s more, their experience with wild swings in meme coins will prime them for the volatile, though relatively “safer,” major cryptos like bitcoin or ether.

And when those novice traders finally realize that a single, low-priced meme coin will never surpass the price of bitcoin or ether as they currently trade (if shiba inu traded near bitcoin’s at around $62,000, its total market cap would be $36.5 quintillion, or 7,313 times the value of the earth’s estimated $5 quadrillion price tag), they may finally gain a little perspective, rid themselves of unit bias and use those meme coins instead to develop proper trader discipline.

Meme coins thus can be seen as the gateway for retail investors to become more experienced crypto traders.

An obedience school, if you will.

Source: Coin Desk

Where Bitcoin Fits in a Post-Scarcity World

This episode is sponsored by NYDIG.

Download this episode

This week’s “Long Reads Sunday” is a reading of EY Global Blockchain Lead Paul Brody’s latest essay for CoinDesk: “We Are Already Living in a Post-Scarcity World.”

See also: MicroStrategy CEO Michael Saylor’s 17,732 BTC Holdings Now Worth $1.1B

“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Dark Crazed Cap” by Isaac Joel. Image credit: Nuthawut Somsuk/iStock/Getty Images Plus, modified by CoinDesk.

Source: Coin Desk

Amazon Web Services Looks to Drive Crypto Settlement and Custody to the Cloud

Amazon Web Services (AWS) is searching for a specialist to foster digital asset underwriting, transaction processing, and custody in the cloud, according to a recent job posting.

The infrastructure giant wants to hire a Financial Services Specialist to work with global financial institutions and innovative fintechs, and “transform the way they transact digital assets (ex. cryptocurrencies, CBDCs [central bank digital currencies], stable coins, security-backed tokens, asset-backed tokens and NFTs [non-fungible tokens]) from price discovery to execution, settlement and custody.”

Amazon’s much-anticipated move into digital assets is expected to include some kind of payment token, a so-called “Amazon coin,” based on previous job postings.

Read more: Amazon Preparing to Launch a ‘Digital Currency’ Project in Mexico

Meanwhile, AWS tailoring its infrastructure to things like cryptocurrency transaction processing and custody will likely be seen as a smart move, one that IBM is also doing.

”Working hand in hand with our sales teams, solution architects, ISVs and systems integrators you will help deliver the solutions that move customers towards end-to-end digital asset underwriting, transaction processing, and custody in the cloud,” said the AWS job ad.

Source: Coin Desk

Inflation or Deflation? Jack Dorsey, Cathie Wood, Elon Musk, Jeff Booth Debate!

This episode is sponsored by NYDIG.

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Last weekend, Jack Dorsey set the internet alight when he proclaimed, “Hyperinflation is going to change everything. It’s happening.” That kicked off a mighty debate involving Cathie Wood, Elon Musk, Jeff Booth and others. At the heart of it is the question of whether inflation or deflation is the more powerful force in the months and years to come.

See also: Jack Dorsey Is Right About Inflation – Partly

“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Dark Crazed Cap” by Isaac Joel. Image credit: OsakaWayne Studios/Moment/Getty Images, modified by CoinDesk.

Source: Coin Desk

BIS Report Questions Whether Stablecoins, CBDCs Can Create Risks in Developing Countries

A number of emerging markets and developing economies (EMDEs) have been looking at stablecoins and central bank digital currencies (CBDC) to address weaknesses in their financial systems.

But according to a paper released Friday by the Bank for International Settlements (BIS), these digital currencies may create daunting issues in these markets and not address problems that other fintech innovations are tackling.

“Stablecoin arrangements aspire to improve financial inclusion and cross-border remittances – but they are neither necessary nor sufficient to meet these policy goals,” the authors of the report, entitled What Does Digital Money Mean for Emerging Market and Developing Countries, write.”

EMDEs in Latin America and other regions have turned increasingly to stablecoins as a store of value. Stablecoins have appeal in countries where the local currencies tend to be less stable and possibly subject to capital controls because of inflation.

The Basel, Switzerland-based BIS is a 91-year organization that supports central banks’ efforts to create banking and financial stability through research and by fostering cooperation among central banks on a range of issues.

The report’s authors question whether stablecoins could “offer lasting competitive advantages over rapidly developing, evolving digital payment services,” including digital ID, e-money and mobile banking. They add that stablecoins could generate new risks related to such issues as governance, efficiency in payment processes, consumer protection and data privacy.

The authors raise concerns about CBDCs, writing that “there is a risk that in periods of systematic stress, (that) households and other agents may shift from bank deposits or other instruments into the CBDC, spurring a ‘digital run’ of unprecedented speed and scale,” and questioning “whether they are necessary or desirable for all jurisdictions.”

But the authors also write that stablecoins in particular have “drawn great – and much needed – attention to the challenges of financial inclusion and cross-border payments and remittances.” This development has underscored efforts to foster a less restrictive regulatory environment, improve “monetary and financial stability frameworks and payment infrastructures, particularly across borders.”

Source: Coin Desk

Identity Thieves Exploit El Salvador’s Chivo Bitcoin Wallet’s Setup Process

At first, Cynthia Gutierrez refused to download Chivo, the digital wallet developed by El Salvador’s government for the use of bitcoin throughout the country and released on Sept. 7.

She decided to open the app on Oct. 16 after learning from fellow Salvadorans that hackers had activated wallets associated with the nine-digit numbers on their identity cards, known as DUI for its acronym in Spanish.

“This was growing more and more, reaching into my close circle,” Gutierrez, 28, told CoinDesk.

When Gutierrez entered her personal information, a screen popped up saying her document number was already associated with a wallet. Immediately, she took a screenshot, fearing that her data would be used for illicit purposes.

Gutierrez’s case is one of the hundreds that Salvadorans have reported on social media and to local advocates since September, when bitcoin was established as legal tender and Chivo started being massively used in the country.

Between Oct. 9 and Oct. 14, Cristosal, a human rights organization in El Salvador, received 755 notifications of Salvadorans reporting identity theft with their Chivo Wallets, Rina Montti, the group’s director of human rights research, told CoinDesk.

In the majority of those cases, the affected Salvadorans tried to activate their wallets after they learned of the large number of people reporting that their identities had been stolen.

The hackers had an incentive: Each wallet came loaded with $30 worth of bitcoin, provided by the administration of Salvadoran President Nayib Bukele to encourage citizens to use the cryptocurrency.

El Salvador’s government did not respond to a request for comment about claims of identity theft involving the wallets by press time.

With the adoption of bitcoin, Bukele positioned his Central American country at the center of a global discussion about the future of money. The process was not without its critics, such as those made against Article 7 of the law, which stipulates that all merchants must accept bitcoin as a form of payment when customers offer it.

The president later denied that bitcoin acceptance would be mandatory. Salvadorans were baffled by the discrepancy between what the president said and what the law stated.

In August, polls showed that 65% to 70% of Salvadorans opposed the adoption of bitcoin, and several protest marches took place in the streets. According to the latest official data provided by Bukele at the end of September, more than 2 million people downloaded the Chivo Wallet, as part of an aggressive agenda that also included bitcoin mining with volcanic energy.

Easy to fool

According to Chivo’s official website, opening an account requires scanning the DUI front and back, and then performing facial recognition to check the registrant’s identity. But several Salvadorans reported evidence that the system is flawed.

When Adam Flores, a Salvadoran YouTuber who runs the channel La Gatada SV, heard about the hacks, he remembered that his grandmother had not opened her Chivo Wallet and decided to use the case as a test. Even though he only had a photocopy of her DUI, he tried it anyway and, to his amazement, the application accepted the document as valid.

Flores followed through with the verification process, which then asked for real-time facial recognition. The YouTuber snapped a photo of a poster on his wall of Sarah Connor — a character from the “Terminator” movie series.

Seconds later, Chivo Wallet welcomed his grandmother and released the $30 incentive, according to a video Flores sent to CoinDesk as evidence.

Other cases uploaded to social media directly showed how just a random photo — in one case, of a coffee mug — was enough to replace the DUI and then fool the face recognition test.

Salvadorans do not always try to open their accounts themselves. According to Montti, of Cristosal, most of the 700 Salvadorans who reported identity theft asked acquaintances to try to transfer money through Chivo by putting their DUI numbers in the recipient field. They discovered the addresses were ready to receive transfers. In other words, the ID numbers were already registered, by someone other than the rightful owner.

Worried about impersonation, Ramón Esquivel asked an acquaintance to send money to a wallet with his DUI on Oct. 11. To his surprise, the transfer was successful, even though he had never activated his account.

“With anger, I realized that they had used my DUI,” Esquivel told CoinDesk, adding that after the episode he filed a complaint in the attorney general’s office. “I’m exposed to being used to commit acts of money laundering that would be registered under my identity, compromising my integrity,” he stated.

Other cases showed that the fraudsters diverted the money to accounts that were not even their own, but those of other hacked people.

Customer support

Two weeks ago, Gabriela Sosa, a Salvadoran media host, tried to activate a Chivo Wallet with her DUI, but an error message jumped up on the screen informing her it was already registered.

As soon as it happened, she called the official support number for Chivo, 192. “I kept calling for several days until they told me I had to go to a Chivo point,” Sosa told CoinDesk. Last Saturday, she went to that help center and her account was finally recovered, but the money was not.

On her Twitter account, Sosa released details of the account to which the $30 had been directed. The owner’s name was Michael Santacruz.

Days later, co-workers and university colleagues sent screenshots of that tweet to Santacruz, who had never activated his Chivo account until then, according to private chat messages he sent to Sosa that she posted.

He tried, then, to open his account but a notification said his DUI had already been registered. Like Sosa, Santacruz approached a Chivo help center, and after recovering his account, he realized that it had been used to receive money from five hacked accounts, he said. (Attempts to reach Santacruz for comment were unsuccessful.)

Transactions made from Michael Santacruz's wallet. (Gabriela Sosa)

Cristosal was not the only nongovernmental organization (NGO) to tackle the problem. Acción Ciudadana, a non-profit specializing in social auditing, filed a notice to the Attorney General’s Office (FGR) on Oct. 12 after the group’s President Humberto Sáenz and Director Eduardo Escobar found hackers had registered their Chivo Wallets.

Acción Ciudadana told CoinDesk that up to now, two weeks after the filing, there was no response from the FGR.

Laura Nathalie Hernández, a tech lawyer at the Salvadoran firm Legal Novis, has been receiving requests for help from victims of identity theft regarding their Chivo Wallets. The first recommendation she gave to the affected people was to post the incident on social media to make it public and also file a report with the attorney general’s office.

According to Hernández, the entity that manages the application should be the first place to turn to. “But we don’t have much information about who is responsible either,” she said, adding: “We don’t know who manages it, if there is a third company. There has been no transparency.”

Unclear accountability

According to Chivo’s terms and conditions, the authorization of an account is conditioned on a know-your-customer (KYC) process carried out by CHIVO S.A. de C.V., a private company created by the government to launch the wallet. This verification process “includes the provision of the information and documents required for full compliance with the process.”

The company’s accountability is unclear. According to the terms and conditions, users agree “not to disclose or divulge to third parties any information, DUIs, passwords or any code used to access the site.” But the terms also state that it “will not be liable for any loss or damage that the user may suffer as a result of unauthorized third party access to your account as a result of hacks or lost passwords.”

Chivo’s support staff did not answer CoinDesk’s questions about who is responsible for a hack where the real account owner does not provide information.

The wallet adds that the verification services will be provided by the company directly and/or through a third party contracted by the company for such purpose. But by press time, it had not answered CoinDesk’s question about what other third party provides identification services to the platform.

Sosa, the Salvadoran media host, told CoinDesk that she eventually got her money back and emphasized that her complaint is not against the application or Bukele’s government, just that she wants to raise awareness of the problem.

Gutierrez has not yet recouped her money. “I tried to contact customer service, and they did not give me an answer, nor is there an institution that is clear about the process to follow in this case,” she said.

Esquivel said he is not interested in either the $30 incentive or the government app.

“If I use bitcoin at all, it will be with a wallet in which I have custody of my money,” he said.

Source: Coin Desk

Ether alcanza un récord de $4400 mientras shiba inu se convierte en uno de los principales quemadores de ETH

Ether (ETH) registró un nuevo máximo histórico el viernes, ya que los datos de la blockchain mostraron que Ethereum quemó más tokens de los que emitió en las últimas 24 horas, en parte gracias a la fuerte actividad de shiba inu (SHIB).

El token nativo de la blockchain de Ethereum subió a $4402 durante las horas asiáticas, superando el anterior récord de $4.379 alcanzado en mayo, según los datos de CoinDesk.

A un precio de $4.370, la criptomoneda ha subido 45% en lo que va de octubre, frente a la ganancia de 40% de bitcoin. El diferencial de volatilidad implícita de ether y bitcoin está aumentando, lo que indica que el mercado espera que ether continúe liderando la evolución de los precios en las próximas semanas, como se mencionó en el newsletter First Mover del jueves.

Los datos rastreados por Tokenview muestran que Ethereum produjo 15.109,34 ETH y quemó 16.710,2 ETH en las últimas 24 horas. Esto supone una reducción de la oferta neta de 1600 ETH.

Shiba inu, la plataforma detrás del autoproclamado destructor de dogecoin, quemó 770,12 ETH y se convirtió en el tercer mayor destructor de ETH. Uniswap v.2 y Tether destruyeron 2.729,22 y 1.248,72 ETH, respectivamente.

SHIB ha tenido una asombrosa suba de 800% este mes y alcanzó un máximo histórico de $0,00008870. Según Defi Llama, el valor total depositado en ShibaSwap, un exchange descentralizado que permite a los usuarios apostar por SHIB, se ha duplicado hasta los $512 millones este mes.

La quema de monedas se refiere al proceso de retiro de tokens de circulación y es el equivalente del mercado de criptomonedas a una recompra de acciones.

La Propuesta de Mejora de Ethereum (EIP) 1559 implementada el 5 de agosto quema una parte de las tasas pagadas a los mineros, eliminando una parte notable de monedas de circulación. La actualización ha vinculado la cantidad de ether quemado con el uso de la red.

Desde su activación, la actualización ha destruido 668.339 ETH, lo que representa más del 50% de las nuevas monedas emitidas en el mismo periodo.

Algunos operadores de opciones están apostando a que los reguladores estadounidenses aprueben pronto un fondo cotizado en bolsa (ETF) basado en futuros y están adquiriendo opciones de compra out-of-the-money baratas previendo un repunte del precio. Los datos que rastrea Laevitas muestran que la opción de compra de ETH a $15.000 que vence en marzo ha atraído una fuerte demanda en los últimos días.

Source: Coin Desk

Market Wrap: Ether Hits New High, Outperforms Bitcoin as Altcoins Rally

Ether, the world’s second-largest cryptocurrency by market capitalization, reached a new all-time price high of around $4,400 on Friday, topping the previous record high of $4,379 in May, according to CoinDesk data.

ETH is up about 11% over the past week, compared to a 3% rise in BTC over the same period. Technical charts indicate further upside for ether relative to bitcoin, with an upside target toward 0.08 in the ETH/BTC price ratio as discussed in yesterday’s Market Wrap.

Overall, analysts expect further upside for cryptocurrencies for the remainder of the year despite occasional pullbacks, which can lead to choppy trading conditions.

“Bitcoin and major altcoins are experiencing strong volatility on the intraday chart, which is normal at all-time-high levels, like we have seen lately,” Lukas Enzersdorfer-Konrad, Bitpanda chief product officer, wrote in an email to CoinDesk.

“The last negative days failed to damage the overall market structure, and fundamentals further indicate that the long term remains decisively bullish,” Enzersdorfer-Konrad wrote.

Latest prices

  • Bitcoin (BTC): $62,346, +1.70%
  • Ether (ETH): $4,394, +3.08%
  • S&P 500: $4,605, +0.19%
  • Gold: $1,782, -0.97%
  • 10-year Treasury yield closed at 1.55%

The great rotation

Despite recent volatility, some traders are starting to position for further upside in alternative cryptocurrencies (altcoins) such as ether.

“Lately, there has been an increasing number of conversations among investors around shifting portfolio allocations from bitcoin to altcoins to capture the higher returns alts have provided during more speculative risk-on periods,” FundStrat, a global advisory firm, wrote in a Thursday newsletter.

“The good news (for BTC and ETH price) is that the tides appear to be shifting towards a more risk-on fall in traditional markets,” FundStrat wrote.

Ether’s record high

Ether’s new price high coincided with improving blockchain data. The smart-contract Ethereum blockchain burned more tokens than it emitted in the last 24 hours, thanks partly to strong action in shiba inu (SHIB), CoinDesk’s Omkar Godbole reported.

Shiba Inu, the platform behind the self-proclaimed dogecoin killer, burnt 770.12 ETH, becoming the third-largest ETH destroyer. Uniswap v.2 and Tether destroyed 2,729.22 and 1,248.72 ETH, respectively.

And some options traders are betting U.S. regulators will soon approve an ether futures-based exchange-traded fund (ETF) and so are buying cheap out-of-the-money calls in anticipation of a price rally.

High network demand

The chart below shows the recent rise in the Ethereum gas price, which refers to the cost of performing transactions on the blockchain network.

“Historically, when gas gets expensive, we’ve seen activity spike on alternative L1s [layer 1]. But now that Arbitrum and Optimism are live, L2s [layer two] could wind up being the primary beneficiaries,” crypto research firm Delphi Digital wrote in a blog post.

Altcoin roundup

  • Decentraland’s MANA surged 80% in 24h: MANA, Decentraland’s native token, surged 80% in one day to a market capitalization of more than $2 billion, CoinDesk’s Lyllah Ledesma reported. This comes after Facebook’s announcement on Thursday afternoon that the company changed its corporate name to Meta to signal an increasing focus on the metaverse, which apparently spurred the jump.
  • Here’s why a CryptoPunk sold for $530 million: A Twitter bot that tracks sales of CryptoPunks flagged a transaction that showed the sale of one CryptoPunk non-fungible token (NFT) for a staggering half-billion dollars, CoinDesk’s Andrew Thurman reported. But while the purchase would’ve been one of the largest art sales in history, on-chain analysts were quick to point out the sale was just a clever bit of smart contract magic.
  • XRP gets wrapped by Tokensoft for Ethereum DeFi debut: Tokensoft’s Wrapped is taking a multi-custodial approach by partnering with Hex Trust on wXRP, CoinDesk’s Ian Allison reported. The new connectivity for XRP holders will allow access to various DeFi applications, whether that’s lending, borrowing or for use in automated market makers, CEO of Tokensoft Mason Borda said. Wrapped has previously wrapped a number of tokens, including bitcoin, zcash, filecoin and others.

Relevant news

Other markets

Most digital assets in the CoinDesk 20 ended the day higher.

Notable winners as of 21:00 UTC (4:00 p.m. ET):

  • The Graph (GRT): +3.36%
  • Polkadot (DOT): +3.32%
  • Stellar (XLM): +3.10%

Notable losers:

  • Dogecoin (DOGE): -6.26%
  • Aave, (AAVE): -2.61%
  • Polygon (MATIC): -1.17%

Source: Coin Desk

Christopher Giancarlo: Crypto’s Advocate in DC

Christopher Giancarlo is the former chairman of the U.S. Commodity Futures Trading Commission and founding principal of the Digital Dollar Foundation, a group that supports the U.S. adopting a digital currency.

This episode is sponsored by Quantstamp.

Giancarlo has written a book and he came on our “Money Reimagined” podcast recently to talk about it. The book is called “Crypto Dad,” which is a nod to the affectionate nickname that members of the crypto community started giving Chris when, as head of the CFTC, he made some regulatory moves that were seen as constructive to the industry, such as the approval of bitcoin futures, which was a contentious move at the time.

The book is packed with inside-the-Beltway insights into the sausage-making behind regulation. It’s also a great primer for understanding the challenges that the U.S. faces as the technology around money goes through a dramatic transformation.

And it makes a very strong case for the federal government to act proactively to support crypto technology in a way that preserves core U.S. values.

It’s timely because right now the regulatory conversation around crypto is front and center. Just last week, the first bitcoin futures exchange-traded fund was launched after the Securities and Exchange Commission gave it the green light after years of resistance to launching a bitcoin ETF that holds physical bitcoin. Ironically, the ETF version the SEC approved is focused on bitcoin futures, a product Giancarlo’s CFTC set in motion.

But if that sounds like the SEC is now seen as a friendlier force by the crypto community, think again. Many view with concern the rather harsh tone the current SEC chairman, Gary Gensler, has taken with the industry.

There’s a lot at stake here. Not just for investors but for geopolitics, too.

This episode was produced and edited by Michele Musso with announcements by Adam B. Levine and additional support by Eleanor Pahl. Our theme song is “Shepard.”

Source: Coin Desk

Bitcoin Miner Rhodium Enterprises Plans to Raise Up to $100M in IPO

Bitcoin miner Rhodium Enterprises intends to become a publicly traded company, according to a filing with the U.S. Securities and Exchange Commission (SEC), in which it outlined plans to raise up to $100 million.

  • The Delaware-based company, which started mining in September 2020, will trade under the ticker RHDM. The miner generated revenue, net income and adjusted EBITDA of $48.2 million, $14.9 million and $40.9 million, respectively, during the six months ended June 30, according to the filing.
  • Rhodium plans to use its proprietary liquid-cooling technology to mine bitcoins cost effectively. The company said that the technology extends the mechanical life of its bitcoin miners by 30%-50%.
  • Rhodium said that its 80 megawatt (MW) of power capacity is enough to run more than 22,600 miners at its “initial Texas site.” These miners have a total hashrate of about 1.8 exahash per second (EH/s).
  • The company expects to add 45 MW of additional power and grow its hashrate to approximately 2.7 EH/s by year’s end.
  • Rhodium is launching a second Texas mining facility by April 2022, and it has already acquired miners with approximately 225 MW of power for delivery the same month.
  • B. Riley Securities is the sole book running manager of the IPO.

Source: Coin Desk