Galaxy’s Institutional Ethereum Funds Raise $32M at Launch – From a Select Few

Galaxy’s Institutional Ethereum Funds Raise $32M at Launch – From a Select Few

Bloomberg

(Bloomberg) – Virgin Galactic Holdings Inc. tumbled Friday after its billionaire Chairman Chamath Palihapitiya offloaded shares worth about $213 million in the space-tourism company founded by Richard Branson.Palihapitiya, who has helped drive the frenzied growth of blank-check companies, disposed of 6.2 million shares at an average price of $34.32 this week, based on a filing with the U.S. Securities and Exchange Commission. He still owns 15.8 million shares with his partner Ian Osborne through investment firm Social Capital Hedosophia, amounting to about a 6.5% stake. Palihapitiya previously sold shares worth almost $100 million in December, filings show.Palihapitiya said he sold the shares to fund an investment to help fight climate change.“The details of this investment will be made public in the next few months,” he said in a statement Friday. “I remain as dedicated as ever to Virgin Galactic’s team, mission and prospects.”Read more: The king of SPACs wants you to know he’s the next Warren BuffettVirgin Galactic’s shares fell 9.9% to $27.29 in New York on Friday and have slid more than 50% since their peak in mid-February.The Las Cruces, New Mexico-based company merged with Social Capital’s first SPAC in 2019. Palihapitiya has since launched blank-check companies that have merged with businesses across health insurance, financial services and real estate including Opendoor Technologies Inc. and Clover Health Investments Corp.Opendoor fell 9.8% on Friday, while Clover Health rose 7.5% after earlier sliding. Other Palihapitiya SPACs such as Social Capital Hedosophia Holdings Corp IV and V reversed midday losses to end up for the day.Palihapitiya, 44, has made a fortune for himself and his investors through SPACs. The former Facebook Inc. executive has raised more than $4 billion via blank-check firms, using social media to talk up the investments and becoming one of the most prominent figures in the phenomenon, which has everyone from Colin Kaepernick to former House Speaker Paul Ryan racing to market their own.He’s also a lightning rod for skeptics who dismiss his success as the product of self-promotion and see blank-check companies as proof of a bubble inflated by government money-printing.A month ago, Palihapitiya said it would only be under the rarest of circumstances that he’d reduce his holdings of any SPAC.“If I could really just go for it, I wouldn’t sell a share of anything I buy because I believe in it,” he said Feb. 8 in a interview on Bloomberg Television’s “Front Row.” “But every now and then, I run into liquidity constraints, like everybody else.”At the time, Palihapitiya had just recently sold 3.8 million Virgin Galactic shares. He said he did so because his family office called needing cash for other purposes.Shares DropSocial Capital’s merger with Virgin Galactic – where Palihapitiya is chairman – made the Branson startup the world’s first publicly traded space-travel venture. The transaction raised about $800 million, with Palihapitiya also directly contributing $100 million.While the shares surged in the wake of the listing, they have tumbled since a February decision to delay the next flight to space. The new schedule also pushed back plans to carry Branson, 70, on a separate mission before Virgin Galactic is expected to take its first flight with passengers paying for the trip.The company on Thursday announced the departure of its chief space officer, George Whitesides, saying he has decided to pursue potential opportunities in public service. Whitesides, who served as chief executive officer for a decade until July 2020, will remain chairman of a four-person Space Advisory Board. Swami Iyer is joining Virgin Galactic later this month as president of aerospace systems.Though Virgin Galactic has hundreds of clients lined up to pay at least $250,000 for a 90-minute flight to the edge of space, it has been a slow journey since the venture was founded in 2004. Plans were put on hold for four years in 2014 after a space plane broke up mid-flight, killing one pilot and injuring another.(Updates stock prices throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Ethereum’s ‘EIP 1559’ Fee Market Overhaul Greenlit for July

One of the most significant and contentious alterations to the Ethereum blockchain in recent memory is now scheduled for inclusion into its codebase.

Ethereum Improvement Proposal (EIP) 1559 will be packaged with the London hard fork this coming July regardless of the mining industry’s discontent with the proposal, according to the All Core Developers call Friday. At least five other EIPs are likely to join EIP 1559 in London.

EIP 1559 flips a typical blockchain transaction on its head in order to fix numerous issues with Ethereum’s user experience. Traditionally, a user sends a gas fee to a miner for a transaction to be included in a block. That gas fee will now be sent to the network itself as a sort of “burn” called basefee with only an optional tip paid to miners. The burnt fee is algorithmically set as well, ostensibly making it easier for users to pay a fair fee.

The proposal has garnered some of the largest support to date from Ethereum application creators and users alike, given the current difficulty of selecting a correct transaction fee. Miners and mining pools, on the other hand, have been gathering in opposition against the proposal as it progressed toward mainnet.

Mining gold rush

Indeed, Ethereum mining has been a particularly lucrative business of late. Total mining revenue surpassed a record $1.3 billion in February, with some 50% coming from fees alone, according to Coin Metrics. An increase in both the price of ether and transaction fees has introduced a wave of new hash power to the network, which is more than double that of a year ago.

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Minority mining pool Flexpool launched a marketing campaign against the EIP. Several minority pools joined, followed by majority pools Ethermine and SparkPool. Over 60% of the Ethereum network’s hash power is now against the proposal. F2Pool is the largest pool in favor of the EIP, with some 10% hash power.

On the call, Ethereum developers decided to pair EIP 1559 with a delay to the difficulty bomb. Also called the “Ice Age,” the bomb incrementally increases the difficulty of mining on the Ethereum network. Geth team lead Péter Szilágyi said that pairing EIP 1559 with the delay helped ensure no one would fork Ethereum at that time without having to undergo some technical hurdles.

MEV to the rescue

Mining pools have only a few options to stop EIP 1559 now that it’s included, and most of these would be considered actively hostile against the network. The largest danger would be a 51% attack against Ethereum, which would censor transactions using the EIPs framework. It remains unlikely, however, given various financial incentives not to attack the network.

For example, successfully using a 51% attack against Ethereum would likely decrease the value of ether in the short term. (Or maybe not, as three 51% attacks on Ethereum Classic have shown).

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 6th, 2021

Ethereum

Ethereum fell by 0.70% on Friday. Following a 1.83% decline on Thursday, Ethereum ended the day at $1,528.82.

A bearish start to the day saw Ethereum slide to a late morning intraday low $1,442.32 before finding support.

Ethereum fell through the first major support level at $1,488 and the second major support level at $1,435.

Steering clear of sub-$1,400 levels, however, Ethereum bounced back to strike a late intraday $1,551.19.

While breaking back through the major support levels, Ethereum failed to break through the day’s pivot level at $1,556.

At the time of writing, Ethereum was up by 0.73% to $1,540.01 A bullish start to the day saw Ethereum rise from an early morning low $1,528.46 to a high $1,546.27.

Ethereum left the major support and resistance levels untested early on.

For the day ahead

Ethereum would need to avoid a fall through the pivot level at $1,507 to support a run at the first major resistance level at $1,573 and the 23.6% FIB of $1,579.

Support from the broader market would be needed, however, for Ethereum to break out from Friday’s high $1,551.19.

Barring an extended crypto rally, the first major resistance level and resistance at $1,600 would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $1,650 before any pullback. The second major resistance level sits at $1,616.

Failure to avoid a fall through the $1,507 pivot would bring the first major support level at $1,464 into play.

Barring an extended sell-off, however, Ethereum should continue to steer clear of sub-$1,400 levels. The second major support level sits at $1,399.

Looking at the Technical Indicators

First Major Support Level: $1,464

Pivot Level: $1,507

First Major Resistance Level: $1,573

23.6% FIB Retracement Level: $1,579

38.2% FIB Retracement Level: $1,292

62% FIB Retracement Level: $830

Litecoin

Litecoin fell by 0.16% on Friday. Following a 3.75% fall from Thursday, Litecoin ended the day at $180.30.

Tracking the broader market, Litecoin slid to an early morning intraday low $168.58 before making a move.

Story continues

Litecoin fell through the first major support level at $174 before rallying to a late intraday high $183.53.

Coming up short of the day’s pivot level and first major resistance level at $191, Litecoin slipped back into the red.

At the time of writing, Litecoin was up by 0.93% to $181.98. A bullish start to the day saw Litecoin rise from an early morning low $180.32 to a high $181.98.

Litecoin left the major support and resistance levels untested early on.

For the day ahead

Litecoin would need to avoid a fall through the $178 pivot level to support a run at the first major resistance level at $186.

Support from the broader market would be needed, however, for Litecoin to break out from $185 levels.

Barring an extended crypto rally, the first major resistance level and resistance at $190 would likely cap any upside.

In the event of an extended rally, Litecoin could test the second major resistance level at $192 and the 23.6% FIB of $195.

Failure to avoid a fall through the $178 pivot level would bring the first major support level at $171 into play.

Barring an extended sell-off, Litecoin should steer clear of the second major support level at $163 and the 38.2% FIB of $163.

Looking at the Technical Indicators

First Major Support Level: $171

Pivot Level: $178

First Major Resistance Level: $186

23.6% FIB Retracement Level: $195

38.2% FIB Retracement Level: $163

62% FIB Retracement Level: $110

Ripple’s XRP

Ripple’s XRP slid by 5.27% on Friday. Partially reversing a 7.33% rally from Thursday, Ripple’s XRP ended the day at $0.45649.

It was a choppy start to the day. Ripple’s XRP rose to an early morning intraday high $0.48418 before hitting reverse.

Falling short of the first major resistance level at $0.5050, Ripple’s XRP slid to an early morning intraday low $0.44629.

The sell-off saw Ripple’s XRP fall through the 38.2% FIB of $0.4632 before steadying.

Finding support at the first major support level at $0.4463, Ripple’s XRP revisited $0.46 levels before easing back. The 38.2% FIB of $0.4632 pinned Ripple’s XRP back late in the day.

At the time of writing, Ripple’s XRP was up by 0.19% to $0.45736. A mixed start to the day saw Ripple’s XRP fall to an early morning low $0.45388 before rising to a high $0.45799.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead

Ripple’s XRP will need to move through the $0.4623 pivot level and the 38.2% FIB of $0.4632 to bring the first major resistance level at $0.4784 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.47 levels.

Barring an extended crypto rally, the first major resistance level and Friday’s high $0.48418 would cap any upside.

In the event of an extended rally, Ripple’s XRP could test the second major resistance level at $0.5002 before any pullback.

Failure to move through the $0.4623 pivot would bring the first major support level at $0.4405 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of the second major support level at $0.4244.

Looking at the Technical Indicators

First Major Support Level: $0.4405

Pivot Level: $0.4623

First Major resistance Level: $0.4784

23.6% FIB Retracement Level: $0.5320

38.2% FIB Retracement Level: $0.4632

62% FIB Retracement Level: $0.3521

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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