It seems like Bitcoin (BTC-USD), Ether (ETH-USD), and company are going to have a strong day. However, there are also significant regulatory issues happening elsewhere in the New Digital World. Although Matterport (NASDAQ:MTTR), one of my favorite metaverse bets, is having a wonderful day. Now let’s get going.
Regulator Actions: Coinbase, Stablecoins
Recall how Circle’s USD Coin (USDC-USD) stablecoin, which belonged to Tornado Cash, had to be “blacklisted” wallets after the penalties on Monday?
The market value of USDC has suffered as a result. (Because it is a stablecoin, the price usually hovers around $1.00… So, this is how we can determine how enthusiastic individuals are about the currency.)
Furthermore, according to the DAI team’s statement to The Defiant yesterday, the Dai (DAI-USD) stablecoin is “heavily backed by USDC” to the tune of 33.9%. The Tornado Cash problem hasn’t really had an impact on the market value of this decentralized stablecoin. Hopefully not adversely…
The Treasury Department’s next target, though, is causing a lot of concern: “Every DeFi protocol is thinking about decreasing their USDC exposure.”
As I observed on Tuesday, Circle is obviously cooperating with the Feds. Their clients at Tornado Cash, whose product is specifically designed to allow you to conduct transactions unnoticed, seem to be in a quite different scenario.
I’m not a forensic blockchain analyst. However, I believe FinCEN (at the Treasury Department) has them since I am aware that Circle has previously registered with them and that they also submit reports to state regulators.
Stablecoins are essential “infrastructure” in the cryptocurrency markets, therefore it’s still important keeping a watch on this. And USDC is often considered as the finest one because to its substantial reserves of (real) cash and “equivalents.”
Coinbase (NASDAQ:COIN) is now under more attention. The SEC is allegedly investigating Coinbase’s listing of nine particular (and quite small) cryptocurrency offers, as we previously witnessed.
These 10-Q Financial Statements were recently submitted along with the quarterly results. According to Coinbase, “its staking programs, and its stablecoin and yield-generating businesses” are also addressed by its “investigative subpoenas and requests from the SEC.” (The USDC reference would also apply to stablecoins.)
Additionally, Coinbase is the kind of company to cooperate: “Last September, the SEC threatened to prosecute Coinbase over its planned lending accounts, which would have provided up to 4% interest on USD currency deposits. After facing early criticism, Coinbase scaled back its intentions later that month,” Blockworks informs us.
On certain DeFi coins, the company “offers various staking and yield schemes”… However, the 10-Q states that, despite the possibility that these inquiries would impact “operations for a certain time,” Coinbase is confident that everything can be handled without “a substantial adverse effect.” Remain tuned!
The company Matterport increased its revenue and earnings forecasts for 2022.
Could Matterport (NASDAQ:MTTR) be making a comeback at last? After submitting its quarterly report overnight, the digital-twin firm experienced a sharp increase in share price of +40% this morning.
Analysts had predicted sales during Q2 to be closer to $30 million, but Q2 revenues were $28.5 million. And although the “profits” of -$0.12 were higher than predicted, they were still lower than the -$0.03 in the same period last year.
Investors are likely reacting to Matterport’s future expectations because:
According to my InvestorPlace colleague Joel Baglole, “the business boosted its sales projection to a range of $132 million to $138 million, up from $125 million to $135 million before.” Despite being somewhat higher than previous projection (-$0.47 to -$0.52), Matterport forecasts 2022 “profits” to be between -$0.46 and -$0.50.
This suggests that Matterport anticipates a pleasant comeback. To now in 2022, MTTR has generated sales of $57 million. In Q3, it anticipates around $36 million. In light of the 2022 forecast, it must also anticipate Q4 revenue of about $42 million.
The revenue increase would be +30% year-over-year in the third quarter, and then +55% in the fourth. (In contrast to these most recent Q2 numbers, which were -3.5% year over year.) That could enable MTTR to escape the hole it has been trapped in for the whole year!
Already in Q2, Subscribers and Spaces Under Management increased by +52% and +44%, respectively. In 177 countries, Matterport has already amassed 24 billion square feet of digital twins and works with 23% of the Fortune 1000.