19 May 2025, 09:33

VARA Fortifies Controls on Crypto Margin Trading in Dubai, Refreshes Rulebook

Dubai's crypto regulator Virtual Asset Regulatory Authority (VARA) has updated its rulebook for digital asset trading. The emirati regulator has introduced greater leverage controls and collateralization requirements through provisions in its Broker-Deal and Exchange Rulebooks. This will help VARA's rules to align with global risk standards, the regulator said in an emailed announcement on Monday. VARA has also introduced sections of its rulebook to properly oversee areas of the crypto industry that were previously lightly regulated, such as broker-dealers and wallets. The rules previously laid out by VARA have helped establish the city as a crypto hub, winning praise from crypto companies for being reasonably clear in their requirements to operate there. Major exchanges such as Binance, Crypto.com and OKX have all won approvals under VARA. VARA is now taking these rules and upgrading them to reflect a more mature framework that it says incorporates real-world licensing experience and international best practices. "These rulebook updates reinforce the foundations of a responsible, scalable ecosystem,” said Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA, said in an emailed comment shared with CoinDesk. Read More: Dubai Government Opens Door to Accepting Crypto for Service Fees

19 May 2025, 09:16

Top 5 Crypto Events to Watch Today – May 19th

The post Top 5 Crypto Events to Watch Today – May 19th appeared first on Coinpedia Fintech News May 19th is turning out to be nothing like a regular (boring) Monday – everything seems to be hitting at once! This is a day packed with real-world moves that could either disrupt or immensely boost the crypto market. From high-stakes calls from the White House to a Senate vote that reshape how stablecoins are regulated in the U.S., there’s a lot happening. Let’s break it down – what’s happening, why it matters, and what to watch next. #1 Trump, Putin, and a Ceasefire Bid that Could Quiet the Chaos President Donald Trump will speak separately with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky today in a push to secure a ceasefire. “I will be speaking, by telephone, to President Vladimir Putin of Russia on Monday, at 10:00 a.m.,” Trump said on Truth Social, aiming to stop the “bloodbath” killing over 5,000 troops a week and to discuss trade. He also confirmed he’ll follow up with Zelensky and NATO members. The geopolitical backdrop is heavy – but here’s where crypto enters the picture: research shows the Russia-Ukraine war directly affects Bitcoin trading volumes. A 1% escalation in the war reportedly causes a 0.2% drop in BTC activity. So, if this ceasefire progresses, don’t be surprised to see a volume bounce and a broader market reset. #2 XRP Futures Go Live on CME – Eyes on $2.50? After months of speculation, it’s official – CME is launching XRP futures today! The move works to expand its crypto derivatives lineup and clear the way for new institutional strategies. “We’re pleased to announce our plans to expand our suite of cryptocurrency derivatives with the introduction of XRP futures on May 19, subject to regulatory review,” CME said. If it wasn’t clear – this is a big deal! Not just because CME is the world’s largest derivatives exchange, but because futures products often act as a gateway for hedge funds and tradfi institutions that can’t (or won’t) hold spot crypto. And let’s take a look back. When CME launched regulated Bitcoin futures in late 2017, it famously coincided with the top of that bull cycle. So the XRP crowd is watching closely: could this be a breakout moment? For now, signals lean bullish. Technical indicators suggest XRP could push toward $2.50, and the token is holding firm above key moving averages. Plus, there’s growing noise around institutional interest, with BlackRock’s crypto strategies and the XRP ETF launch both in the mix. #3 Coinbase Hits the S&P 500 – A Historic First for Crypto Coinbase Global (COIN) officially enters the S&P 500 today, replacing Discover Financial Services. What a milestone! “Coinbase Global Inc. (NASD: COIN) will replace Discover Financial Services (NYSE: DFS) in the S&P 500 effective prior to the opening of trading on Monday, May 19,” said S&P Global in a release. Founded in 2012, Coinbase has grown into the largest U.S.-based crypto exchange and the world’s biggest Bitcoin custodian. As of today, the company holds a market cap of $67.87 billion. For crypto, this moment is symbolic and strategic. It’s one thing to talk about adoption – it’s another to see one of the biggest names in the space sit shoulder to shoulder with Apple, Amazon, and JPMorgan on one of Wall Street’s most elite lists. Wouldn’t you agree? #4 Saylor May Be Back to Buy More Bitcoin Michael Saylor is teasing YET another big Bitcoin purchase for Strategy (formerly MicroStrategy). In a familiar move, he posted the firm’s portfolio tracker on X, a signal that’s historically preceded a BTC buy within 24 hours. “Never short a man who buys orange ink by the barrel,” he wrote. Strategy currently holds 568,840 BTC worth $59 billion, up $19.7 billion from cost basis. If this next buy lands, Bitcoin bulls may just get the fuel they need to push toward $110K. Fingers crossed. #5 Stablecoin Vote: GENIUS Act Returns to Senate Floor The GENIUS Act – a bipartisan bill aiming to establish a federal framework for payment stablecoins – is back for another vote after falling short earlier this month. Senator Bill Hagerty said, “Next week, the Senate will make history when we pass the GENIUS Act…” adding that the bill would “cement U.S. dollar dominance, protect customers, increase demand for U.S. treasuries…” Senator Gillibrand echoed the urgency, stressing stablecoins’ role in global finance. If this passes, it’ll mark the U.S.’s first serious regulatory win in crypto – and finally offer some clarity to stablecoin players. Bottom line? May 19 is stacked with events that could set the tone for the next phase of the crypto cycle. Momentum is building. We’ll keep you updated.

19 May 2025, 09:15

$107K fakeout or new all-time highs? 5 things to know in Bitcoin this week

Bitcoin ( BTC ) starts a new week with a long-awaited breakout from a narrow trading range around $103,000. BTC price action grabs liquidity before reversing to its starting position, liquidating many an emotional trader on the way. A fakeout or a taste of things to come? The May 18 daily and weekly close nonetheless became Bitcoin’s highest ever. US trade deals remain high on the list of macro volatility triggers for risk asset traders this week. Crypto’s correlation with stocks paints a mixed picture, adding to uncertainty over how macro developments will influence Bitcoin and altcoins going forward. Bitcoin exchange volume delta becomes a key ingredient in assessing the staying power of BTC price breakouts, per analysis from CryptoQuant. A liquidity grab for the ages Bitcoin price action delivered some “classic” moves around the May 18 weekly close. A trip to new multimonth highs near $107,000 was followed by a 4% correction in a matter of hours, data from Cointelegraph Markets Pro and TradingView shows. BTC/USD 1-hour chart. Source: Cointelegraph/TradingView The spike took out a block of liquidity nestled close to all-time highs, with BTC/USD performing a liquidity “grab” designed to first squeeze out shorts and then trap late longs. “Classic liquidity trap above the recent high and reversal downwards,” crypto trader, analyst and entrepreneur Michaël van de Poppe responded on X. “I think we'll do the same at $100K before we'll start breaking out above the ATHs. Those are the zones to accumulate your Bitcoin.” BTC/USDT 4-hour chart with RSI data. Source: Michaël van de Poppe/X Data from monitoring resource CoinGlass showed ask liquidity being replenished at $107,500, keeping the price from heading higher. The market then took out bid liquidity to $102,000. Total crypto liquidations in the 24 hours to the time of writing were $673 million. BTC liquidation heatmap. Source: CoinGlass Discussing the outlook for Bitcoin, trader CrypNuevo was among those arguing for caution instead of entering at any level in the current range above $100,000. “From a risk management perspective, I don’t see it worth it to go long right now at market price,” he wrote in an X thread prior to the weekly close volatility. “Yes, price could go up as the HTF trend suggests but as a trader I look for low risk entries. We're currently at resistance. Clearing it would make a much more attractive entry.” BTC/USDT 1-week chart with 50EMA. Source: CrypNuevo/X CrypNuevo acknowledged that bullish signals on high timeframes remain and highlighted the retest of the 50-week exponential moving average (EMA) in April, which has historically led to new all-time highs . This weekend, another prediction called for $116,000 to arrive in the coming days . Bitcoin scores highest weekly close in history It may not have lasted long, but Bitcoin’s latest weekly close has become the highest ever recorded . Coming in at around $106,500, the weekly candle also allowed for a new all-time high daily close. BTC/USD 1-week chart. Source: Cointelegraph/TradingView Despite the subsequent correction of nearly 4%, traders are keen to celebrate what they see as an underlying desire for the market to push higher. Highest weekly close ever for Bitcoin. The trend is your friend! pic.twitter.com/p4td9Ab4R8 — CryptoGoos (@crypto_goos) May 19, 2025 “Highest weekly close ever followed by a red start to the week? Yeah - get the low in early, this week likely ends in the green big time,” trader Jelle argued in an X analysis. Fellow trader Chad noted that BTC/USD has also managed to close above a key Fibonacci extension level for two consecutive weeks — a first of its kind. BTC/USD 1-week chart with Fibonacci levels. Source: Chad/X Private wealth manager Swissblock Technologies saw one key ingredient to bullish continuation. “Bitcoin flirted with $107K, grabbed liquidity above $104K–$106K but failed to hold,” it summarized in its latest X reaction. “Back in the range, support holding, for now. Bulls have one job: defend this range.” BTC price data. Source: Swissblock Technologies/X CoinGlass showed that May is a highly varied month for BTC price action. Currently, its 10% gains sit in the middle of a wide range of historical outcomes, with under two weeks left until the monthly close. BTC/USD monthly returns (screenshot). Source: CoinGlass US trade war rumbles on as Bitcoin ignores rate-cut odds A lack of crucial macroeconomic data reports this week places the focus on the Federal Reserve and US trade deals. In particular, markets will be looking for positive developments regarding trade ties between the US and its partners. Treasury Secretary Scott Bessent promised to enact new tariffs on those who do not negotiate in “good faith.” News of a deal with China caused a snap reaction for stocks earlier this month, with traders feeling a sense of relief. This may not be so evident as the week begins, thanks to the recent US credit downgrade by Moody’s, wiping 1% off stocks’ futures prior to the first Wall Street open. With the dollar again under pressure, trading resource The Kobeissi Letter suggested that Bitcoin and altcoins may still benefit in the current climate. “Crypto is loving the Moody’s downgrade: Bitcoin is now 4% away from a new all time high and up over +40% since its April low,” it noted around the weekly close. “As the US Dollar weakens and uncertainty rises, Bitcoin and Gold are thriving. Instability is Bitcoin’s best friend.” US dollar Index (DXY) 1-day chart. Source: Cointelegraph/TradingView Crypto is also increasingly resilient to hawkish cues from the Fed, which has given markets reason to believe that interest rate cuts will not come before September. Data from CME Group’s FedWatch Tool shows the odds of a cut at the Fed’s upcoming June meeting at just 12%. Jobless claims on May 22 could shift those expectations if the result differs significantly from predictions. Fed target rate probabilities (screenshot). Source: CME Group Fed Chair Jerome Powell will deliver the annual Georgetown University Law Center Commencement Address on May 25, but it is unlikely to provide much policy insight. Crypto stocks correlation in flux Diverging reactions to the Moody’s downgrade set the stage for a debate around crypto’s correlation with US stocks. In its latest analysis, research firm Santiment could not draw a clear conclusion over the two asset classes’ relationship, calling them “somewhat correlated.” “With the 90-day tariff pause between the US & China Monday, markets remain within striking distance of all-time highs,” it summarized on May 17, referring to the S&P 500, Bitcoin and gold. Bitcoin vs. S&P 500 vs. gold. Source: Santiment/X Separate findings from blockchain data provider RedStone Oracles drew a distinction between long- and short-term correlation. While negative on a rolling seven-day basis, it told Cointelegraph , a 30-day perspective delivers a “valuable correlation” between Bitcoin and the S&P 500. Bitcoin, S&P 500, 30-day rolling correlation, 1-year chart. Source: Redstone Oracles Meanwhile, market participants have aired frustration at crypto’s susceptibility to the same volatility triggers impacting stocks. “It was a lot more enjoyable when $BTC traded independently of stocks,” commentator IncomeSharks told X followers on May 19. “It seems now it's just a way for people to trade stock futures during the weekend and mirror what the $SPY is doing during the week.” Volume delta warns over “local market top” Considering what it might take to launch Bitcoin back into price discovery, a new analysis looked at exchange order-book behavior. Related: Bitcoin hitting $220K ‘reasonable’ in 2025, says gold-based forecast Binance, in particular, was under the microscope as the exchange with the largest spot volumes. Volume delta, onchain analytics platform CryptoQuant said, is a key ingredient in sustained price moves. “After the recent market correction, the spot net volume delta on Binance has turned positive again,” contributor Darkfost wrote in a “ Quicktake ” blog post on May 18. “This signals that buying activity is picking up on spot markets, but more importantly, that selling pressure has significantly declined, even with BTC trading above $100 000. However, historically, when spot volumes on Binance rise too quickly and too sharply, it has often coincided with local market tops.” Bitcoin spot net volume delta. Source: CryptoQuant Volume delta measures the difference in buy and sell pressure across candles, helping assess the underlying strength of bid and ask sides. CryptoQuant suggests that investors throwing caution to the wind around breakouts contributes to unsustainable price spikes, and monitoring volume delta helps avoid disadvantageous market entries. “Rather than being a warning sign, rising spot volumes at this point would be encouraging for market strength,” Darkfost continued. “Tracking spot volumes can provide valuable insights into investor behavior, especially on Binance, which handles the largest share of global trading.” This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

19 May 2025, 09:05

Crypto Executives Turn to Private Security Amid Rise in Kidnappings

Top figures in the cryptocurrency industry are increasingly turning to private bodyguards and security consultants as kidnapping attempts and ransom threats continue to rise—particularly in France. According to a recent Bloomberg report , the surge in targeted attacks has prompted crypto entrepreneurs and investors to seek personal protection, often on a long-term basis. Infinite Risks International, a private security firm based in Amsterdam, has reported a noticeable spike in demand for executive protection services. The firm says more crypto professionals are requesting bodyguard coverage for both themselves and their families, citing recent high-profile cases of abduction attempts. Kidnappings in France Spark Security Alarms The spike in threats isn’t theoretical—it’s been backed by real, disturbing events. In January 2025, David Balland, co-founder of hardware wallet firm Ledger, was kidnapped and held for ransom before French authorities were able to rescue him. It was one of several recent cases that have rattled the crypto community. In another incident from May 2024, the father of an unnamed crypto entrepreneur was taken hostage in a Paris suburb. French police, acting on intelligence, launched a successful raid that resulted in the victim’s release. Reports from Le Parisien revealed that the criminals had severed one of the victim’s fingers—a gruesome tactic also seen in previous crypto-related kidnappings. Then, just last week on May 13, attackers targeted the family of Pierre Noizat , CEO of French crypto exchange Paymium. Several masked assailants tried to kidnap his daughter and grandson in broad daylight. They were physically assaulted on the street but managed to fight back with the help of a bystander, thwarting the abduction attempt. Government Pushes for Tighter Safety Measures The brazenness and frequency of these attacks have sent shockwaves through the crypto world. In response, the French Law enforcement agencies have introduced new security protocols for individuals identified as high-risk due to their exposure to the crypto industry. These include personalized safety briefings, prioritized access to emergency police support, and explicit advice urging investors not to flaunt wealth or wear crypto-branded clothing, which may inadvertently mark them as targets. French Interior Minister Bruno Retailleau has called for an urgent meeting with crypto industry leaders. The goal: to implement coordinated security measures for high-profile individuals in the space. The post Crypto Executives Turn to Private Security Amid Rise in Kidnappings appeared first on TheCoinrise.com .

19 May 2025, 09:04

Retired Artist Loses Millions in Crypto After Fake Coinbase Call

The scam exploited a fake website and a very convincing story to trick Suman into revealing his hardware wallet’s seed phrase. Additionally, Coinbase is grappling with a major data breach that allegedly involved bribed customer service agents in India. The breach compromised sensitive user data, including that of Sequoia Capital partner Roelof Botha. This raised serious alarms about the potential compromise of other partners at Sequoia Capital, which is one of the world’s most influential venture firms. The attackers reportedly demanded $20 million in hush money. In France, authorities are responding to the spike in crypto-related kidnappings by offering enhanced police protection to crypto executives. The incidents are part of the escalating physical and digital threats targeting crypto holders around the globe. Scammers Pose as Coinbase Staff Retired artist Ed Suman, 67, reportedly lost more than $2 million in cryptocurrency after falling victim to a sophisticated scam that involved imposters claiming to be Coinbase support staff. A Bloomberg report published on May 17 revealed that Suman turned to crypto investing after retiring from a decades-long career in the art world. With a portfolio that included 17.5 Bitcoin (BTC) and 225 Ethereum (ETH), Suman stored his assets securely in a Trezor Model One hardware wallet, which is considered one of the safest options for safeguarding digital currencies offline. However, the security of that setup was upended in March when Suman received a text message warning him of alleged unauthorized access to his Coinbase account. Trezor Model One What followed was a very carefully orchestrated social engineering attack . A man who introduced himself as Brett Miller from Coinbase’s security team called Suman shortly after the message and had an uncanny familiarity with Suman’s setup, including the fact that his crypto was stored on a hardware wallet. The caller appeared highly credible, and convinced Suman that despite the wallet's offline nature, his funds could still be at risk. He then guided Suman through a so-called “security procedure” that required entering his wallet’s seed phrase into a spoofed website that is designed to imitate Coinbase. Just over a week later, another person claiming to be from Coinbase contacted Suman and repeated the security walkthrough. By the time the call ended, Suman’s life savings in crypto were completely drained. The incident has coincided with news of a major data breach at Coinbase. The breach was reportedly carried out by bribing customer service agents in India, and resulted in hackers accessing sensitive user information including names, account balances, and transaction histories. Coinbase Data Breach Hit Top VC The recent data breach at Coinbase reportedly impacted one of the most well known figures in venture capital, which raised new concerns about the depth and seriousness of the incident. According to a May 16 report by Bloomberg, Sequoia Capital Managing Partner Roelof Botha had personal data compromised after the cybercriminals got unauthorized access to Coinbase user information. (Source: Sequoia Capital ) Although Botha has not publicly revealed his net worth, estimates suggest he controls hundreds of millions of dollars in assets. The breach not only affected him but raised serious alarms about the potential compromise of other partners at Sequoia Capital, which is one of the world’s most influential venture firms with deep investments in the tech and crypto sectors. The attackers reportedly tried to extort Coinbase for $20 million in exchange for withholding the data breach from the public, an offer the company declined. Coinbase addressed the incident in a May 15 blog post , and confirmed that a subset of users fell victim to social engineering attacks after their personal account details were accessed. The company stated that the breach stemmed from customer service contractors based in India who were subsequently fired. In a filing with the US Securities and Exchange Commission (SEC), Coinbase estimated it may have to spend between $180 million and $400 million on reimbursement and remediation for the affected users. The situation may also extend beyond Coinbase. Another Bloomberg report indicated that similar social engineering attacks were attempted against users on other major platforms, including Kraken and Binance. In the midst of the data breach, Coinbase CEO Brian Armstrong was in Washington, DC, pushing for crypto legislation that is currently under review in Congress. There is a Senate vote on a stablecoin bill expected soon and the House is evaluating a new digital asset market structure framework. Coinbase stock price over the past 24 hours (Source: Google ) Meanwhile, Coinbase’s stock fell over 7% after the breach was reported, though it has since rebounded. France Acts After Crypto-Related Kidnappings Coinbase users are not the only people in the crypto industry who are being specifically targeted by criminals. France is taking urgent steps to improve the safety of crypto entrepreneurs and their families after a surge in kidnapping attempts linked to the crypto sector. A May 16 report from Politico revealed that France’s Interior Minister, Bruno Retailleau, announced a suite of enhanced protective measures in response to the growing threat. These include priority access to police emergency lines, specialized home security evaluations, and direct safety briefings from law enforcement officials that are aimed at helping crypto professionals adopt stronger personal protection strategies. These changes were made after three alarming incidents over the past few months. Most recently, on May 13, attackers tried to abduct the daughter and grandson of Pierre Noizat, the CEO of French crypto platform Paymium. The attack took place in broad daylight, and local authorities reported that Noizat’s daughter heroically disarmed one of the attackers by seizing and discarding a weapon before managing to escape. Just ten days earlier, on May 3, police in Paris rescued the father of a crypto entrepreneur who was kidnapped and held for ransom in a €7 million ($7.8 million) extortion scheme. And in January, David Balland, co-founder of crypto hardware wallet company Ledger, was abducted from his home in central France. He was held overnight before being freed the next evening. Retailleau believes these cases may be interconnected and pledged to respond with both immediate and long-term countermeasures. This includes specialized training for law enforcement in combating crypto asset laundering, as well as engagement with the crypto industry to build tailored security protocols. Since 2014, there have been more than 150 reported cases of crypto-related robberies or kidnappings globally, with at least 23 occurring in 2025 alone. This is according to a database that is kept up to date by Bitcoin advocate Jameson Lopp . Many of these incidents are believed to stem from criminals tracking victims via public events, social media, or overt displays of wealth. Lopp warned against peer-to-peer trades with unknown individuals, showing off crypto wealth online, and wearing crypto-branded merchandise that might draw attention.

19 May 2025, 09:00

An Update On Coinbase's Q1 2025 Earnings (Rating Upgrade)

Summary Coinbase's S&P 500 inclusion is a massive liquidity event, driving momentum and attracting institutional investors, making it a unique, premium crypto investment. Regulatory progress like the STABLE Act and USDC growth, plus the Deribit acquisition, position Coinbase for long-term success as crypto adoption accelerates. Despite cybersecurity incidents, Coinbase's proactive response and industry-leading transparency reinforce its resilience and investor confidence. Valuation remains challenging, but with rising custody assets and momentum, I see Coinbase reaching a $100B market cap and $400/share by 2027. Decoding Crypto with Coinbase When I first wrote about Coinbase ( COIN ) last October , I naively maintained a ‘hold’ position given the market premium. Coinbase is the only pure-play crypto stock, so naturally investors will buy Coinbase because no other alternative is available in the public markets. Of course, the greatest uncertainty in October 2024 was the U.S. Presidential Election. But since President Trump, we have witnessed crypto achieve even more demand from the capital markets. Looking backwards, I wrote about Coinbase when it achieved a near-time low. Now the Trump Administration has loosened its grip on crypto and deregulated so much of the market, making Coinbase a prime beneficiary. Today, I will cover some of the key updates for Coinbase investors, which includes advancing trading, scaling stablecoins, and security updates. Coinbase is unusual in that it cannot be compared to the traditional financial services firm. The company generates revenue from multiple sources, and its core asset class (crypto) is very volatile. So if you don’t invest in crypto or enjoy volatility, I recommend investing with caution. To begin, I recommend reading Coinbase’s shareholder letter . I’ve always enjoyed this snapshot they provide investors with every quarter. In fact, if you have a Coinbase Wallet you mint their recent earnings from their Investor Relations page. It's a great way to connect and engage the investment community. Coinbase Q1 2025 Shareholder Letter The Future of Stablecoins and the STABLES Act We are beginning to see the early stages of crypto adoption throughout the financial services industry. For context, I recommend looking at this one week in crypto post by Jason Yanowitz, who is the co-founder of Blockworks . x.com The updates from Stripe to Coinbase to Bitcoin and Ethereum are massive. Individually these seem like small updates, but they are meaningful as a group. For example, not mentioned above is Coinbase’s long-term partnership with Circle which is driving the growth of the USDC ecosystem on-chain. If you don’t use stablecoins like USDC, then you probably aren’t familiar with Circle or even the STABLE Act. First, Circle is planning to IPO this year and its plans were only on pause because of volatility from the Trump tariffs in April. But now the STABLE Act, or the Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025 (H.R. 2392), a new legislation introduced on April 2nd, 2025 is bullish for Circle and Coinbase. The bill aims to establish a regulatory framework for stablecoins, specifically dollar-denominated payment stablecoins. I’ve watched these stablecoin updates for months because I know how bullish this will be for the crypto ecosystem. For example, the U.S. established a Strategic Bitcoin Reserve and Digital Asset Stockpile, which was a landmark executive order in January. This will help the U.S. government monetize its crypto assets on behalf of the American taxpayer. This was also bullish for Coinbase because they make money from providing custody for crypto assets. During the 2024 election, I followed Stand With Crypto , a Coinbase-backed nonprofit advocacy group, for political updates. Their website gave me excellent updates on how politicians view the asset class in real-time. And on May 14th, 2025, Stand With Crypto held an event in Washington, D.C. to bring together over 60 crypto founders from 26 states. The group aimed to push for bipartisan regulatory frameworks to establish clear crypto rules. These positive developments have increased my confidence to go long Coinbase. The $2.9 Billion Acquisition of Deribit Coinbase’s acquisition of Deribit was the largest crypto acquisition in the past few months. A few months ago, Kraken’s acquisition of NinjaTrader was a big deal for the trading community because it made Kraken more mainstream. Before Kraken and Coinbase, it was Stripe’s acquisition of Bridge to enter the stablecoin industry in a big way. I won't comment much about futures and derivatives because I don’t have enough experience regarding either when it comes to crypto. But I do know that the trading community loves these products, and they generate significant fees for exchanges. I suspect more trading volume to come from these acquisitions, and it will support the rumors of Kraken going public in 2026. The Success of Entering the S&P 500 index With all of that said, I am writing about Coinbase because it has joined the S&P 500 index, which is a massive deal for the company, industry and shareholders. Event-driven investing is an excellent way to make money if the events are pre-defined. Examples include mergers and acquisitions, product announcements or some corporate action. It’s not typical, but stocks entering or exiting an index like the S&P 500 is also a massive liquidity event. This is also the exact moment when smart money profits from fast money. You see, when a stock enters the S&P 500 Index, or a similar broad market index, there will be countless fund managers who will indirectly buy Coinbase stock because of their passive investment strategy. For context, the stock is already up 27% over the past week on the news. Google Finance This announcement will pivot Coinbase’s investor base from growth to momentum. Something similar happened when Palantir joined the S&P 500 index last September as well. I think the momentum for new investors to buy Coinbase stock will continue for the foreseeable future. Most retail investors won't realize how significant this news is and try justifying not buying the stock because of its rich premium. Instead, investors can expect the premium to continue to be rich as Coinbase is a one-of-a-kind investment. That’s until more crypto companies go public and join the S&P 500 index in the future. Cybersecurity Concerns with Armstrong Like any exchange, Coinbase is under constant threat. Even with the transparency that comes with crypto, cybersecurity threats are always imminent. And last week, Coinbase discovered that cybercriminals bribed a small group of their overseas support agents to steal customer data. Watch this video of CEO Brian Armstrong on X, addressing customers and investors about the recent attacks on the Coinbase platform. You can read a detailed post on how Coinbase is handling this matter on their blog . x.com Coinbase is refusing to pay the $20 million ransom demanded by the criminals and will instead establish a $20 million reward fund for info of those responsible. The company is also reimbursing customers who were tricked into sending funds to the attackers. These cybersecurity attacks are learning lessons for the company and shareholders. Every financial institution is exposed to similar challenges. But fortunately for Coinbase, the S&P 500 announcement overcame these attacks and the stock has been up double-digits for the past few days. However, investors definitely need to be aware of these cyberattacks in the future. Coinbase is no exception to these and crypto is full of stories riddled with fraud, scam and theft. Do your best to understand how crypto works before buying Coinbase stock. The Valuation of Coinbase Financial technology stocks are a tough business to value for several reasons. First, Coinbase has become a momentum stock, and it will continue to trade at a premium for the foreseeable future. However, the main challenges with valuing Coinbase is that it has several different business models that most investors aren’t familiar with. For example, crypto itself is a tough asset to value. Today, Coinbase offers over 212 assets for custody and 172 assets for trading. But every week, millions of tokens are attempting to list on the Coinbase exchange. This makes it difficult for the average investor to understand the level of custody and trading exposure Coinbase has at any moment. In Coinbase’s recent earnings, you will find that total revenue was down 10%, but adjusted net income was up significantly to $527 million. Even though transaction revenue was down, Coinbase experienced gains from holding crypto assets such as Bitcoin. Coinbase also saw its average assets under custody grow to $212 billion, up $25 billion from the past quarter. ​ Also, USDC, the second-largest dollar-backed stablecoin, saw substantial growth in Q1 2025, with its market cap exceeding $60 billion . ​ Coinbase's efforts to integrate USDC into its products have driven increased adoption among retail and institutional users. The average USDC held in Coinbase products grew to $12.3 billion, which is up 49% quarter over quarter. I expect this adoption to continue to rise as institutional USDC balances reach an all-time high. The cybersecurity concerns and entering the S&P 500 index have created a buying opportunity for investors today. By becoming a momentum stock, Coinbase has the clear sight to become a $100 billion market cap stock over the next two years. This will put the share price closer to $400 by the end of 2027. By joining the S&P 500 Index, investors and fund managers will find a reason to increase their crypto exposure. This will create a flywheel unlike any we’ve ever seen before in the tech industry. Even with a high revenue multiple, Coinbase will likely accrue significant custody assets in 2025, creating a sound fundamental position for investors to buy the stock today.