Public keys are a weekly summary. decryption Track major publicly traded crypto companies. This week: DraftKings officially enters the prediction market race, Bitcoin miners make a comeback, and payments giant Zelle enters the stablecoin space.
DraftKings is predictable
When DraftKings announced it had acquired prediction market exchange Railbird, it was no surprise at all. This rumor was first reported by front office sports In July.
But DraftKings, the sports betting giant that trades on the Nasdaq under the ticker DKNG, has unique hurdles to clear. The company already offers sportsbooks in at least 25 states and daily fantasy sports products in more than 40 states.
The company does not want to jeopardize its licenses in the states where it currently operates.
Paul Gillum, a sports betting expert and full-time trader at prediction market firm Mojo, said some states have already made their positions clear.
“Some states where we already operate have voiced that launching a prediction market in their state could jeopardize their regulated gambling licenses,” he said on LinkedIn.
But DraftKings doesn’t seem keen on testing the resolve of these regulators. This is said by a person familiar with the company’s plans. decryption Its new prediction market app will focus on states without legal sports betting.
DraftKings’ stock price rose on the day of the announcement, but it didn’t last long. DKNG closed at $33.00 per share on Friday, down 4.9% for the day and 3.2% for the week.
Reversal of Canaan
Bitcoin mining rig maker Canaan set a price target of $4 this week and was reported by benchmark analyst Mark Palmer as an “accelerating turnaround story.”
We’re talking about a very dramatic transformation of the company. In May, it was threatened with delisting from the Nasdaq because it was trading below $1. Last week, Canaan received a letter confirming that it is once again compliant with listing standards.
Currently, we are already halfway through the benchmark’s new price target. Canaan, which trades under the ticker CAN, ended the week at $1.89 after gaining 7.39% over the past day and 18.12% this week.
Palmer highlighted the popularity of Canaan’s Avalon series of Bitcoin mining rigs.
“We believe our ADRs are very cheap,” Palmer wrote, referring to American Depositary Receipts, which allow foreign companies to trade in the United States. Palmer added that the bank expects CAN to “appreciation as it executes on its strategy, with potential tailwinds from rising Bitcoin prices.”
Zell acquires stables across the border
Payment processor Zelle begins using stablecoins to facilitate international transactions.
The platform’s parent company, Early Warning Services, said the move “will enable Zelle to offer faster and more reliable cross-border fund transfers.”
The payment processor is owned by Wall Street giants Bank of America, Capital One, JPMorgan Chase, PNC Bank, Trust, US Bank and Wells Fargo.
Stablecoins are growing at a breakneck pace. According to a new report from TRM Labs, trading volumes have increased by 83% over the past year. And stablecoins currently account for 30% of all cryptocurrency trading volume, totaling approximately $4 trillion.
“Interest will continue to surge as institutions look to leverage digital assets for use cases such as value transfer,” said Angela Ang, head of APAC policy and strategic partnerships at TRM. decryptionstated that we are still “just at the beginning of the stablecoin adoption curve.”
Other keys
Protected with BTC: JPMorgan begins allowing institutional clients to use BTC and ETH as loan collateral through a third-party custodian model. Nothing has been announced yet for Chase’s retail customers.
Galactic profits: Mike Novogratz’s Galaxy Digital made a profit of $505 million in the third quarter, the company reported Tuesday. The company also announced a 140% quarter-over-quarter increase in trading volume, including the $9 billion notional Bitcoin sale that Galaxy facilitated earlier this year.
