Market
How Ripple, Coinbase’s $119 Million Could Shape 2024 Elections
Crypto companies, notably Coinbase and Ripple, have infused over $119 million into the 2024 elections. Their goal is to support crypto-friendly candidates and shape clear regulations.
The bulk of these funds has been funneled into super political action committees (PACs), strategically supporting pro-crypto candidates and sideline skeptics.
Crypto Companies Make Aggressive Donations
The leading recipient of these corporate donations is Fairshake PAC, which now boasts $202.9 million in contributions. Remarkably, $107.9 million—53% of Fairshake’s funding—originates from crypto corporations, primarily Coinbase and Ripple.
Crypto Sector Corporation | Total 2024 Contributions | Recipients | Amount |
---|---|---|---|
Coinbase | $50,499,995 | Fairshake PAC | $45,499,995 |
Protect Progress (Fairshake affiliate) | $1,500,000 | ||
Defend American Jobs (Fairshake affiliate) | $1,500,000 | ||
Senate Leadership Fund (Republican PAC) | $500,000 | ||
Senate Majority PAC (Democratic PAC) | $500,000 | ||
Congressional Leadership Fund (Republican PAC) | $500,000 | ||
House Majority PAC (Democratic PAC) | $500,000 | ||
Ripple | $49,000,000 | Fairshake PAC | $45,000,000 |
Protect Progress (Fairshake affiliate) | $1,500,000 | ||
Defend American Jobs (Fairshake affiliate) | $1,500,000 | ||
Commonwealth Unity Fund (John Deaton super PAC) | $1,000,000 |
Substantial donations from industry giants such as the Andreessen Horowitz founders, the Winklevoss twins, and Coinbase CEO Brian Armstrong further bolster this sum. However, this flood of corporate cash into politics has sparked controversy.
“Money moves the needle. For better or worse, that’s how our system works,” Brian Armstrong said.
Armstrong’s words highlight the aggressive push by these corporations to prioritize their financial interests. Consequently, Public Citizen believes that such actions may overshadow public welfare.
Read more: Top 12 Crypto Companies to Watch in 2024
Now, crypto corporations have become prominent political spenders. Since 2010, their contributions have reached $129 million, accounting for 15% of all known corporate political expenditures, totaling $884 million. Their financial clout is second to the fossil fuel industry’s election-related spending.
Impact of Political Funding: Threat to Democracy?
The impact of these contributions is evident. In 42 primary races influenced by crypto-backed super PACs, the industry’s favored candidates won 36 times. This success is also impacting politicians’ strategies.
For instance, Donald Trump, formerly a crypto skeptic, has rebranded himself as a pro-crypto presidential candidate. At the Bitcoin Conference in July, he vowed to make the US the “crypto capital of the planet” and even suggested the creation of a “strategic Bitcoin reserve.”
Meanwhile, the Democratic front appears receptive to a policy shift. Bloomberg reported that Kamala Harris’s advisers are signaling a more accommodating approach to crypto regulations, potentially easing the stringent measures seen under the current administration.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
The strategic use of funds by the crypto sector indicates that companies are leveraging financial power for political influence. While this tactic is not new, the scale and focus of crypto industry spending are notable.
Candidates are clamoring to demonstrate their willingness to pander to crypto corporations, and sitting lawmakers are backing off tough policy stances. It is a clear indication that the Supreme Court’s 2010 ruling in Citizens United is a serious factor in the 2024 elections – and a threat to our democracy,” Public Citizen criticized crypto’s impact in the 2024 election.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
$1.6 Billion in Bitcoin and Ethereum Options Expire After Fed Cut
The crypto market is bracing for heightened volatility as nearly $1.6 billion worth of Bitcoin (BTC) and Ethereum (ETH) options expire today.
This event coincides with the Federal Reserve’s recent decision to cut interest rates by 50 basis points (bps).
Fed’s Decision Fuels the Crypto Market Rally Ahead of Major Options Expiry
According to data from Deribit, 20,037 Bitcoin options contracts worth approximately $1.26 billion will expire on September 20. These contracts have a put-to-call ratio of 0.85 and a maximum pain point of $58,500.
Similarly, Ethereum’s options market is set to expire with 125,046 contracts worth $308.16 million. Today’s expiring Ethereum contracts have a put-to-call ratio of 0.65, with a maximum pain point of $2,350.
Read more: An Introduction to Crypto Options Trading
In options trading, the maximum pain point refers to the price level at which option holders would suffer the largest losses. It is essentially the price at which the highest number of options (both calls and puts) would expire worthless, inflicting maximum financial “pain” on traders. On the other hand, the put-to-call ratio gauges market sentiment by comparing the number of put options (bets on price declines) to call options (bets on price increases).
Greeks. live’s recent analysis outlined the impact of the Fed’s decision to cut rates for today’s expiring crypto options contracts. The analysts noted that the Fed’s move was largely expected and aligned with macroeconomic forecasts.
“Implied volatility declined significantly across all major maturities, with ultra-short-term IVs falling by over 25%, as short-term short-selling expectations by large investors fell short,” they wrote.
Looking ahead, Greeks.live also noted that there will be another interest rate meeting on November 8 and December 19 this year, where the market expects a cumulative 100 bps rate cut. The next rate cut could coincide with the US election, increasing the likelihood of heightened market volatility.
BeInCrypto reported that this week’s rate cut has positively impacted the crypto market. Following the decision, Bitcoin surged from the $59,000 level to surpass the $63,500 mark.
Similarly, Ethereum also experienced a significant increase during the period. Data showed that ETH skyrocketed from $2,293 to as high as $2,482.
However, both assets have now stabilized. At the time of writing, Bitcoin and Ethereum are trading at $62,890 and $2,450, respectively.
Read more: 9 Best Crypto Options Trading Platforms
Despite the positive momentum, traders are advised to remain cautious. Historically, options expiration often leads to short-term instability in the market. The next few days will be crucial in determining whether Bitcoin and Ethereum can sustain their upward trends or if a period of correction is imminent.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Crypto Pundit Predicts Historical 9,468% Pump To $27
A new XRP price prediction by popular crypto pundit Egrag Crypto projects that the cryptocurrency could experience a historical price surge of about 9,468%. This predicted price gain would push XRP from its current price of $0.58 to $27, marking new All-Time Highs (ATHs).
XRP Price Forecasted To Pump To These Targets
Egrag Crypto has taken to X (formerly Twitter) to express his bullish outlook on XRP, predicting the cryptocurrency could surge as high as $27. On Wednesday, September 18, the crypto analyst shared a price chart illustrating a speculative breakdown of potential price movements for XRP using five distinctive color indicators to represent various price increase scenarios.
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Each of these scenarios has been carefully analyzed, grounded on historical price trends and past price pumps. Additionally, the color indicators — white, yellow, red, blue, and green, are all arranged respectively to represent the ascending price potential of XRP.
The white color indicator predicts that XRP is set to witness a 932% pump from the analyst’s predicted cycle low of $0.28. While this scenario is relatively conservative compared to other projections, if XRP can achieve the predicted pump, its price could surge to $3, nearing current all-time highs.
The yellow color indicator foresees XRP increasing by 1,538%, potentially driving its price to fresh all-time highs of $4.85. While this target is much higher than the white scenario, it is still within the realm of possibility if the cryptocurrency maintains a positive momentum.
The red indicator projects that XRP’s price will jump to $6.22, marking a 2,035% increase. This massive surge would signal a strong bull run for the cryptocurrency, likely reflecting the influence of major external factors such as mass adoption and more legal clarity.
In the blue color scenario, XRP is set to reach a higher price of $7.68, representing a whopping 2,536% increase. At this price, XRP would likely be seen as a major player in the market with potential long-term viability.
Finally, the green color indicator predicts that XRP could witness a 9,468% price surge, potentially driving the cryptocurrency to a staggering $27. Although this ambitious prediction would be a historic achievement, it remains a far-fetched possibility with XRP’s current market dynamics.
XRP Community Express Skepticism
While Egrag Crypto’s bullish projections for XRP raise the hopes of investors who have been HODLing the coin for years now despite its low value and persistent consolidation phase, many have also expressed doubts. A few crypto members criticized the analyst, calling him out for his overly bullish forecasts for XRP.
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Other members found the ambitious price predictions humorous, declaring that XRP is a “shit coin” and would remain so for a long period. Additionally, one crypto member underscored XRP’s long-term stagnant growth, highlighting that he had bought $1,000 worth of the cryptocurrency early last year but only accrued a profit of $100.
Featured image created with Dall.E, chart from Tradingview.com
Market
Crypto Brands Return to Sports Sponsorships With 26 Deals
Crypto sports sponsorship is cautiously rebounding in 2024, signaling a modest revival from the downturn following the boom in 2021. Despite these signs of recovery, the sector still falls short of reaching the highs witnessed during the peak year.
The increase in sports sponsorship also indicates a recovery of the crypto market. Brands are sponsoring sports teams because they have additional funds available for such marketing activities.
The crypto industry started heavily investing in sports sponsorship in 2021. During that year, the industry saw an unprecedented expansion with 42 new deals, representing 45.6% of the total 92 sports sponsorships from 2021 to 2024.
This growth was propelled by a bullish digital currency market, which led to significant agreements. Notably, Crypto.com secured a $700 million deal for the naming rights of Staples Center, renaming it to Crypto.com Arena.
Additionally, FTX entered into a $210 million sponsorship with esports group Team SoloMid. The aggressive sponsorship came as firms sought mainstream visibility and adoption.
Read more: 14 Best Crypto Marketing Agencies for 2024
However, the narrative shifted drastically in 2022 with the market’s downturn. The sector saw a severe reduction in new deals, dropping to 25. The collapse of FTX, previously a key player, led to canceled deals, including its partnerships with the Miami Heat and other sports platforms.
Despite the downturn, some firms like Bybit and Vechain managed to secure substantial agreements; Bybit secured a $150 million deal with Red Bull Racing, and Vechain signed a $100 million contract with UFC.
The downward trend persisted into 2023, with only 8 new sponsorships signed, though 14 existing deals were renewed. Amidst prolonged bearish market conditions and the FTX fallout, the industry remained cautious, limiting substantial financial commitments. However, OKX demonstrated resilience by securing a $70 million deal with Manchester City, illustrating that strategic investments could still thrive.
By 2024, the industry witnessed a gentle recovery, with 26 new sponsorships and 16 continuing from prior years. Noteworthy among these was Crypto.com’s sponsorship with the UEFA Champions League and BlockDAG’s $10 million deal with Borussia Dortmund (BVB). Additionally, Bitget announced a new partnership with LaLiga to enhance crypto adoption in Southeast Asia, Eastern Europe, and Latin America.
“The volume of new sponsorships has not surpassed the 2021 levels, but the uptick in activity suggests crypto firms are slowly re-entering the sports space,” CoinGecko said.
Read more: Top 5 Crypto Companies That Might Go Public (IPO) in 2024
Specifically, crypto sponsorships have primarily focused on football, with early adopters including prominent clubs like Manchester United, Chelsea, and Manchester City. The strategy extended to global events such as the UEFA Champions League and the FIFA World Cup, leveraging football’s massive international following.
Despite the market’s volatility, some partnerships, like Crypto.com’s diverse sponsorships and Bybit’s strong presence in Formula 1, have become long-term success stories.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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