Crypto Industry Dominates 2024 Election Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 41 minutes ago
0mins
Source: Yahoo Finance
- Total Contributions: So far, crypto companies have donated $189 million in the 2024 U.S. presidential elections, establishing themselves as the dominant corporate political spenders, highlighting their significant influence ahead of the upcoming midterm elections.
- Top Donors: Andreessen Horowitz leads with $51.65 million, followed by Ripple Labs at $49.6 million and Crypto.com at $38.6 million, indicating these firms' proactive role in shaping the political landscape, which could impact policy-making and industry regulation.
- PAC Funding Flow: Fairshake PAC received $82 million from crypto firms, while MAGA Inc., supporting Trump, garnered $56.2 million, reflecting the strategic choices of the crypto industry in backing specific political stances and candidates, potentially influencing future legislative directions.
- Industry Comparison: The crypto sector's contributions far exceed those of Big Tech and online betting, which donated $60 million and $46 million respectively, showcasing the crypto industry's dominant position in corporate political spending and raising concerns about its influence.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 146.190
Low
230.00
Averages
361.63
High
440.00
Current: 146.190
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Crypto Industry Dominates 2024 Election Spending
- Total Contributions: So far, crypto companies have donated $189 million in the 2024 U.S. presidential elections, establishing themselves as the dominant corporate political spenders, highlighting their significant influence ahead of the upcoming midterm elections.
- Top Donors: Andreessen Horowitz leads with $51.65 million, followed by Ripple Labs at $49.6 million and Crypto.com at $38.6 million, indicating these firms' proactive role in shaping the political landscape, which could impact policy-making and industry regulation.
- PAC Funding Flow: Fairshake PAC received $82 million from crypto firms, while MAGA Inc., supporting Trump, garnered $56.2 million, reflecting the strategic choices of the crypto industry in backing specific political stances and candidates, potentially influencing future legislative directions.
- Industry Comparison: The crypto sector's contributions far exceed those of Big Tech and online betting, which donated $60 million and $46 million respectively, showcasing the crypto industry's dominant position in corporate political spending and raising concerns about its influence.
See More
Launch of Open USD Stablecoin Disrupts Market Dynamics
- Market Reaction: The debut of Open USD led to a nearly 20% drop in Circle's stock, as the market quickly concluded that this new stablecoin poses a significant threat to USDC's dominance, even though USDC remains a key player in the on-chain economy.
- Cost Structure Challenge: Open USD's promise of free minting and redemptions, along with shared reserve earnings, forces Circle to reassess its USDC economic model, potentially compressing its profit margins further.
- Partnership Tensions: Coinbase, Circle's primary partner, faces pressure from Open USD, which may push for a larger share in the upcoming renegotiation of their agreement, exacerbating Circle's financial strain.
- Intensified Stablecoin Competition: The launch of Open USD indicates that stablecoin issuance has become commoditized, with issuers competing by sharing earnings, compelling Circle to consider how to maintain profitability while preserving its distribution network.
See More
Open USD Stablecoin Announcement Hits Circle Stock Hard
- Stablecoin Partnerships: The announcement of Open USD, backed by over 140 major global companies, has led to a significant 17% drop in Circle's stock in just one day, indicating the market's sensitivity to this new stablecoin initiative despite its current announcement status.
- Market Competition Shift: The introduction of Open USD poses a challenge to existing stablecoins like Circle and Tether, as the consortium of 140 companies plans to share the interest income from the float, potentially altering the profitability landscape of the entire industry.
- Coinbase's Dual Role: Coinbase earns more from USDC than Circle does and is a participant in Open USD, with its agreement with Circle expiring in August, positioning Coinbase advantageously within the new stablecoin ecosystem and possibly affecting its future revenue streams.
- Legal and Regulatory Implications: The launch of Open USD suggests that these companies anticipate the Clarity Act will not pass, as its approval would change the current profit-sharing model, with the consortium's collaboration indicating a strategic insight into the future of the stablecoin market.
See More
ARK Fintech ETF Outperforms with Coinbase and Meta Leading Gains
- ARKF ETF Performance: The ARK Fintech Innovation ETF is up approximately 4.3% in Wednesday trading, significantly outperforming other ETFs, indicating strong market demand and investor confidence.
- Coinbase and Meta Surge: Key components Coinbase and Meta have risen about 10.2% and 10.1% respectively, reflecting positive market sentiment towards these companies, which may drive future investment inflows.
- PTF ETF Decline: In contrast, the Invesco Dorsey Wright Technology Momentum ETF is down about 6% in Wednesday afternoon trading, suggesting a cautious market outlook on technology stocks.
- Weakness in Sandisk and Teradyne: Within the PTF ETF, Sandisk and Teradyne have dropped approximately 9.3% and 9.2%, indicating that these companies may face market challenges that could impact their short-term performance.
See More
Circle Internet Group Stock Experiences Significant Volatility
- Stock Volatility: Circle Internet Group's stock fell over 17% on Tuesday, and while it rebounded in pre-market trading on Wednesday, concerns about competition indicate investor uncertainty regarding its future prospects.
- Rating Adjustments: Compass Point upgraded Circle's rating from 'Sell' to 'Neutral' but lowered its price target from $97 to $55, reflecting caution about its long-term outlook, while William Blair maintained an 'Outperform' rating with a $650 target, arguing that the market overreacted.
- Increased Competitive Pressure: The launch of Open USD has raised concerns about Circle's distribution and revenue models, particularly given that Circle is set to pay Coinbase nearly $908 million in 2024 for distribution, which means its income is almost entirely reliant on interest from USDC reserves.
- Shifts in Market Sentiment: Despite the divide on Wall Street regarding Circle's outlook, retail investors viewed Tuesday's sell-off as a buying opportunity, with sentiment shifting from 'bearish' to 'extremely bullish', indicating that confidence in Circle remains strong.
See More
Investment Comparison Between Bitcoin and Ethereum
- Market Dominance: Bitcoin currently commands 58% of the total cryptocurrency market value, while Ethereum holds only 9%, marking the widest gap in years, indicating Bitcoin's strong market dominance and potential to continue attracting investor interest in the future.
- Supply Mechanism Differences: Bitcoin's supply is hard-capped at 21 million coins, with approximately 95% already in circulation, issuing about 164,250 new coins annually, and expected to halve in 2028, which will enhance Bitcoin's scarcity over the long term and potentially drive prices higher.
- Ethereum's Supply Uncertainty: Unlike Bitcoin, Ethereum's supply is not fixed; following the Dencun upgrade in March 2024, its net issuance rate is approximately 0.23% annually, meaning its supply could fluctuate based on on-chain activity, increasing risks for holders.
- Investment Strategy Recommendation: For investors with no cryptocurrency holdings, it is advisable to first purchase Bitcoin as a store of value, while Ethereum can serve as a supplementary investment; despite its higher potential returns, Ethereum carries significantly more risk compared to Bitcoin, making Bitcoin the better long-term investment choice.
See More
Crypto Industry Dominates 2024 Election Spending
- Total Contributions: So far, crypto companies have donated $189 million in the 2024 U.S. presidential elections, establishing themselves as the dominant corporate political spenders, highlighting their significant influence ahead of the upcoming midterm elections.
- Top Donors: Andreessen Horowitz leads with $51.65 million, followed by Ripple Labs at $49.6 million and Crypto.com at $38.6 million, indicating these firms' proactive role in shaping the political landscape, which could impact policy-making and industry regulation.
- PAC Funding Flow: Fairshake PAC received $82 million from crypto firms, while MAGA Inc., supporting Trump, garnered $56.2 million, reflecting the strategic choices of the crypto industry in backing specific political stances and candidates, potentially influencing future legislative directions.
- Industry Comparison: The crypto sector's contributions far exceed those of Big Tech and online betting, which donated $60 million and $46 million respectively, showcasing the crypto industry's dominant position in corporate political spending and raising concerns about its influence.
See More
Launch of Open USD Stablecoin Disrupts Market Dynamics
- Market Reaction: The debut of Open USD led to a nearly 20% drop in Circle's stock, as the market quickly concluded that this new stablecoin poses a significant threat to USDC's dominance, even though USDC remains a key player in the on-chain economy.
- Cost Structure Challenge: Open USD's promise of free minting and redemptions, along with shared reserve earnings, forces Circle to reassess its USDC economic model, potentially compressing its profit margins further.
- Partnership Tensions: Coinbase, Circle's primary partner, faces pressure from Open USD, which may push for a larger share in the upcoming renegotiation of their agreement, exacerbating Circle's financial strain.
- Intensified Stablecoin Competition: The launch of Open USD indicates that stablecoin issuance has become commoditized, with issuers competing by sharing earnings, compelling Circle to consider how to maintain profitability while preserving its distribution network.
See More
Open USD Stablecoin Announcement Hits Circle Stock Hard
- Stablecoin Partnerships: The announcement of Open USD, backed by over 140 major global companies, has led to a significant 17% drop in Circle's stock in just one day, indicating the market's sensitivity to this new stablecoin initiative despite its current announcement status.
- Market Competition Shift: The introduction of Open USD poses a challenge to existing stablecoins like Circle and Tether, as the consortium of 140 companies plans to share the interest income from the float, potentially altering the profitability landscape of the entire industry.
- Coinbase's Dual Role: Coinbase earns more from USDC than Circle does and is a participant in Open USD, with its agreement with Circle expiring in August, positioning Coinbase advantageously within the new stablecoin ecosystem and possibly affecting its future revenue streams.
- Legal and Regulatory Implications: The launch of Open USD suggests that these companies anticipate the Clarity Act will not pass, as its approval would change the current profit-sharing model, with the consortium's collaboration indicating a strategic insight into the future of the stablecoin market.
See More
ARK Fintech ETF Outperforms with Coinbase and Meta Leading Gains
- ARKF ETF Performance: The ARK Fintech Innovation ETF is up approximately 4.3% in Wednesday trading, significantly outperforming other ETFs, indicating strong market demand and investor confidence.
- Coinbase and Meta Surge: Key components Coinbase and Meta have risen about 10.2% and 10.1% respectively, reflecting positive market sentiment towards these companies, which may drive future investment inflows.
- PTF ETF Decline: In contrast, the Invesco Dorsey Wright Technology Momentum ETF is down about 6% in Wednesday afternoon trading, suggesting a cautious market outlook on technology stocks.
- Weakness in Sandisk and Teradyne: Within the PTF ETF, Sandisk and Teradyne have dropped approximately 9.3% and 9.2%, indicating that these companies may face market challenges that could impact their short-term performance.
See More
Circle Internet Group Stock Experiences Significant Volatility
- Stock Volatility: Circle Internet Group's stock fell over 17% on Tuesday, and while it rebounded in pre-market trading on Wednesday, concerns about competition indicate investor uncertainty regarding its future prospects.
- Rating Adjustments: Compass Point upgraded Circle's rating from 'Sell' to 'Neutral' but lowered its price target from $97 to $55, reflecting caution about its long-term outlook, while William Blair maintained an 'Outperform' rating with a $650 target, arguing that the market overreacted.
- Increased Competitive Pressure: The launch of Open USD has raised concerns about Circle's distribution and revenue models, particularly given that Circle is set to pay Coinbase nearly $908 million in 2024 for distribution, which means its income is almost entirely reliant on interest from USDC reserves.
- Shifts in Market Sentiment: Despite the divide on Wall Street regarding Circle's outlook, retail investors viewed Tuesday's sell-off as a buying opportunity, with sentiment shifting from 'bearish' to 'extremely bullish', indicating that confidence in Circle remains strong.
See More
Investment Comparison Between Bitcoin and Ethereum
- Market Dominance: Bitcoin currently commands 58% of the total cryptocurrency market value, while Ethereum holds only 9%, marking the widest gap in years, indicating Bitcoin's strong market dominance and potential to continue attracting investor interest in the future.
- Supply Mechanism Differences: Bitcoin's supply is hard-capped at 21 million coins, with approximately 95% already in circulation, issuing about 164,250 new coins annually, and expected to halve in 2028, which will enhance Bitcoin's scarcity over the long term and potentially drive prices higher.
- Ethereum's Supply Uncertainty: Unlike Bitcoin, Ethereum's supply is not fixed; following the Dencun upgrade in March 2024, its net issuance rate is approximately 0.23% annually, meaning its supply could fluctuate based on on-chain activity, increasing risks for holders.
- Investment Strategy Recommendation: For investors with no cryptocurrency holdings, it is advisable to first purchase Bitcoin as a store of value, while Ethereum can serve as a supplementary investment; despite its higher potential returns, Ethereum carries significantly more risk compared to Bitcoin, making Bitcoin the better long-term investment choice.
See More
