In a surprising move, the former president of the New York Stock Exchange (NYSE), Thomas Farley, has announced that he has acquired CoinDesk, the leading media platform for the cryptocurrency and blockchain industry. Farley, who left the NYSE in 2018 to become the CEO of Far Point Acquisition Corp, a special purpose acquisition company (SPAC), said that he was impressed by CoinDesk’s growth and influence in the emerging digital asset sector.
CoinDesk, founded in 2013, is one of the most trusted and respected sources of news, analysis, data and events for the crypto community. It operates the CoinDesk Bitcoin Price Index, which tracks the price of bitcoin across various exchanges, and hosts the annual Consensus conference, which attracts thousands of attendees from around the world. CoinDesk also produces original podcasts, videos, newsletters and research reports on various aspects of the blockchain ecosystem.
Farley did not disclose the terms of the deal but said that he plans to invest heavily in CoinDesk’s expansion and innovation. He said that he believes that CoinDesk has the potential to become the “Wall Street Journal of crypto” and that he wants to help it achieve that vision. He also said that he intends to keep CoinDesk’s editorial independence and integrity intact, and that he will not interfere with its journalistic mission.
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Why the CoinDesk Sell Off?
The cryptocurrency market has been experiencing a sharp decline in the past few days, with many coins losing more than 20% of their value. The most prominent example is Bitcoin, which dropped from over $60,000 to below $40,000 in less than a week and regulatory tussles might have facilitated the sell off. What are the reasons behind this sell off, and what are the implications for the future of crypto?
There are several factors that contributed to the market crash, but the main trigger was the announcement by China that it would ban financial institutions and payment companies from providing services related to cryptocurrency transactions. This is not the first time that China has taken a hostile stance towards crypto, but it is the most severe one so far. The move was seen as a way to curb speculation, money laundering, and environmental damage caused by crypto mining.
The news from China caused a wave of panic selling among investors, who feared that other countries might follow suit and impose similar restrictions. The sell off was exacerbated by technical issues, such as network congestion, high fees, and liquidations of leveraged positions. Many traders who had borrowed money to buy crypto were forced to sell at a loss to repay their debts, creating a downward spiral.
The market crash also affected the sentiment of retail investors, who had been attracted by the hype and promise of crypto. Many of them saw their portfolios shrink dramatically, and some even lost their life savings. The volatility and unpredictability of crypto made them question its viability as a store of value and a medium of exchange.
However, not everyone is pessimistic about the future of crypto. Some experts and enthusiasts believe that the sell off is a temporary setback, and that the fundamentals of crypto are still strong. They argue that crypto offers many advantages over traditional finance, such as decentralization, transparency, innovation, and inclusion. They also point out that crypto has survived many crises before, and that each time it has bounced back stronger than ever.
The long-term outlook of crypto depends on how it will adapt to the changing regulatory and technological landscape. Crypto will have to prove its value proposition to both institutional and retail investors, as well as to governments and regulators. Crypto will also have to overcome the challenges of scalability, security, usability, and sustainability. If crypto can achieve these goals, it might become a mainstream asset class that can compete with or even replace fiat currencies.
“I have been following CoinDesk for a long time and I have always admired their quality and professionalism. They are the go-to source for anyone who wants to understand what’s happening in the crypto space. I think they have a huge opportunity to educate and inform the mainstream audience about this revolutionary technology and its implications for the future of finance, business and society. I am excited to join forces with them and support them in their journey,” Farley said in a statement.
CoinDesk’s CEO, Kevin Worth, welcomed Farley’s acquisition and said that he was looking forward to working with him to take CoinDesk to the next level. He said that Farley’s experience and expertise in the traditional financial markets would be invaluable for CoinDesk as it seeks to bridge the gap between crypto and Wall Street.
“Thomas is a visionary leader who has a deep understanding of how markets work and how media can shape them. He shares our passion for crypto and our commitment to journalistic excellence. He brings a wealth of resources and connections that will help us grow our audience, reach new markets and create new products and services. We are thrilled to have him on board as our new owner and partner,” Worth said.
CoinDesk’s acquisition by Farley is the latest sign of the increasing interest and involvement of Wall Street veterans in the crypto industry. Earlier this year, BNY Mellon, the oldest bank in the US, announced that it would offer custody and other services for digital assets.
Goldman Sachs, Morgan Stanley and JPMorgan Chase have also started to offer crypto-related products and services to their clients. Meanwhile, several prominent figures from the traditional finance world have joined or invested in crypto companies, such as Mike Novogratz (Galaxy Digital), Anthony Scaramucci (SkyBridge Capital), Stanley Druckenmiller (Duquesne Family Office) and Paul Tudor Jones (Tudor Investment Corp).