Central American Bank for Economic Integration to Help El Salvador Implement Bitcoin as Legal Tender

Central American Bank for Economic Integration to Help El Salvador Implement Bitcoin as Legal Tender

The Central American Bank for Economic Integration (CABEI), which has 15 member countries, will help El Salvador implement bitcoin as legal tender. The CABEI president has expressed his support. “We’re very optimistic,” he said.

Central American Bank for Economic Integration Supports El Salvador’s Bitcoin Law

The head of the Central American Bank for Economic Integration (CABEI) expressed his support for El Salvador’s bitcoin law Monday. CABEI Executive President Dante Mossi said that the bank will give El Salvador technical assistance to implement bitcoin as legal tender. Last week, El Salvador became the first country in the world to pass a law making the cryptocurrency legal tender.

The CABEI has 15 member countries: Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Dominican Republic, Belize, Mexico, Republic of China (Taiwan), Argentina, Colombia, Spain, Cuba, and Korea. The bank’s objective is to “promote the economic integration and the balanced economic and social development of the Central American region,” its website details.

Mossi said his organization will work with El Salvador’s finance ministry and central bank to select a team to work on the implementation, Reuters reported.

Mossi believes that the move to make bitcoin legal tender would offer many benefits to people in El Salvador. For example, it would lower the cost of remittances for relatives of Salvadorans living abroad, he explained, adding:

We’re very optimistic.

The CABEI executive president also called on El Salvador’s government to develop a regulatory framework for bitcoin in order to prevent “bad actors” from taking advantage of the system’s anonymity, the publication conveyed.

Following El Salvador’s move to make bitcoin legal tender, lawmakers in a number of Latin American countries have expressed their interest in bitcoin. The countries include Paraguay, Argentina, Panama, Brazil, and Mexico. Moreover, Tonga and Tanzania have also reportedly expressed interest in bitcoin.

Do you think other CABEI member countries will follow El Salvador’s lead and make bitcoin legal tender? Let us know in the comments section below.

Source: Bitcoinnews.com

General Motors CEO: ‘Nothing Precludes GM From Accepting Bitcoin if There’s Consumer Demand’

General Motors CEO Says ‘Nothing Precludes GM From Accepting Bitcoin if There’s Consumer Demand’

The CEO of General Motors (GM), America’s largest automaker, says that nothing precludes her company from accepting bitcoin if there is consumer demand for it. “Certainly, we want to make the whole buying and ownership experience as easy as possible,” said the GM chief executive.

GM Will Accept Bitcoin if There’s Demand, CEO Indicates

Mary Barra, the CEO of General Motors (NYSE: GM), talked about the prospect of the largest automaker in the U.S. accepting bitcoin in an interview with CNBC Wednesday.

Referencing Tesla CEO Elon Musk stating last week that his electric car company may start accepting BTC again, Barra was asked whether GM will be accepting the cryptocurrency for payments. She replied:

There’s nothing that precludes us from doing that. We will be driven by our customers. Certainly, we want to make the whole buying and ownership experience as easy as possible. We will follow their lead.

When Tesla announced in February that it would accept bitcoin for payments, the GM CEO said that her company was not interested in doing the same. However, in an earnings call at the end of March, Barra softened her stance on BTC and said the company would consider accepting the cryptocurrency “if there’s strong consumer demand.” She confirmed Wednesday that her company’s position on bitcoin has not changed.

Meanwhile, Musk said this week that Tesla will resume accepting bitcoin “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend.”

Do you think General Motors will soon accept bitcoin for payments? Let us know in the comments section below.

Source: Bitcoinnews.com

Fed Expects 2 Rate Hikes in 2023, Stock Market Plunges, Powell Anticipates Higher Inflation

Fed Expects 2 Rate Hikes in 2023, Stock Market Plunges, Powell Anticipates Higher Inflation

The Federal Reserve on Wednesday told the public that it has forwarded the time frame for raising interest rates. “Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain,” the Federal Open Market Committee (FOMC) said in a statement.

The Meeting Before the ‘Meeting’ – Fed Expects Two Rate Hikes in 2023

  • After a number of market players waited for the Federal Reserve to reveal some signals, they got some on June 16, when 13 of the FOMC’s 18 committee members projected a rate hike by the end of 2023.
  • “You can think of this meeting that we had as the ‘talking about talking about’ meeting,” the chairman of the Federal Reserve, Jerome Powell noted on Wednesday. The ‘meeting’ Powell refers to is the one where the FOMC raises interest rates after keeping rates suppressed at zero.
  • The so-called plot of individual member interest rate expectations, shows a possibility of two interest rate hikes in 2023. The Fed believes that at the end of 2021, the unemployment rate will be around 4.5%.

  • “The problem now is that demand is very strong, incomes are high, people have money in the bank accounts. Demand for goods is extremely high, and it hasn’t come down,” Powell explained on Wednesday. “But in terms of over-correcting, there is a possibility on the other side of this that inflation could actually be quite low going forward. But that is not where our focus is right now.”
  • At the post-meeting news conference, Powell discussed inflation. “Our expectation is these high inflation readings now will abate,” Powell stressed to the press. The post-meeting statements from the Fed saw the inflation expectation rise to 3.4%.
  • “We don’t in any way dismiss the chance that it can work out that this goes on longer than expected, and the risk would be that over time, it does begin to affect inflation expectations,” Powell remarked.
  • “We’re on path to a very strong labor market,” Powell also said at the post-meeting news conference.

  • The Dow Jones Industrial Average or Dow fell 260 points on Wednesday after the Fed’s rate hike signals.
  • “With respect to inflation it’s the factors that have restrained it over the past 25 years, and which Powell expects to continue to restrain it in the future that are transitory,” Economist and gold bug, Peter Schiff, wrote on Wednesday following the FOMC meeting. “After years of reckless Fed monetary policy the inflation chickens are finally coming home to roost,” Schiff added.
  • The Fed has ignored all the urging to slow down purchases,” said the northmantrader.com founder, Sven Henrich, after the Fed’s committee meeting. “Powell cut the rug from under any dissenters on the committee, is insisting on printing more than during the depth of the GFC w/ the hottest economy in 50 yrs, inflationary pressures & the largest asset bubble in history.”
  • “This is not what the market expected,” James McCann, deputy chief economist at Aberdeen Standard Investments explained in an interview with CNBC. “The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary.”

What do you think about the Fed explaining it may raise interest rates twice in 2023 and expects higher inflation levels? Let us know what you think about this subject in the comments section below.

Source: Bitcoinnews.com

Solving the Climate Change Problem Using Blockchain Technology – Start of the FOSTER Project

FOSTER - Swiss Company TRES Group GmbH Is Launching a Greening Program for Planet Earth

The Swiss company TRES Group GmbH is launching an exciting and innovative program aiming at adding a solution to the Climate Change challenge. For several months, the FOSTER project has been under development, which aims to mass plant trees around the world for the benefit of increasing carbon dioxide absorption using blockchain technology.

Climate the Change is an existential threat requiring participation by all to find and implement solutions to stay below 1.5 degree centigrade global warming. Nature Based Solutions are one form of alleviating CO2 emissions. Forestation and reforestation are a very effective way of creating an offset of CO2 emissions generated by fossil fuels utilization. Trees absorb CO2 and hence reducing the CO2 emissions, essentially the main reason for global warming, in the atmosphere.

The world is going through “Energy Transition” gradually moving away from coal and fossil fuels to renewable energies. However, that this transition is a long journey and use of fossil fuels in several sectors such as aviation and heavy transportation cannot stop overnight. Nature Based Solutions can provide offsets. Individuals started to develop a personal awareness about their own Carbon footprint in their daily lives and would, if that was possible, adopt solutions where they see a direct link between their action and its impact. Foster intends to use blockchain technology to enable ownership of trees through tokens. Each token will represent a tree!

FOSTER takes control of all processes, from the purchase of land, its preparation for tree planting to certification and the trading of CO2 credits on international sites.

Absolutely anyone can become a participant in solving the global problem of our time and make a contribution by purchasing FOSTER tokens, which will act as a guarantor of the planted tree in one of the 6 countries selected by the company.
FOSTER’s profits will be generated from the development of biomass and trade of CO2 credits. The local communities, who were until now threatening the survival of forests by cattle raising or farming, would now generate alternative economic revenues through the sustainability of the forests valued by tokenized trees ownership and generation of CO2 credits.

There will be three main elements in the FOSTER ecosystem:

1) Main token – FOSTER. The total supply of tokens.
20% – 1.600.000.000 FOSTER is allocated for sale.
This is a utility token of the company and is aimed at its development, purchase of land, marketing, advertising, development, tokenization, and listing on exchanges, as well as other important components for the successful implementation of the FOSTER project.
The 1st round of selling FOSTER tokens for a total amount of 405.000 USDT at $0.00125 for 1 FOSTER started on 11.06.21.

Based on the data obtained, a relatively narrow circle of investors among which the 1st round of the Tokensale was held, there is a great demand in favor of the development of this project. You can say that the sample of investors is representative (covering different gender, income, and place of residence).
Thus, The team believe that the interest from large investors and eventually the entire population of the planet as a whole will continue to grow exponentially because ecology and environmental protection are becoming an increasing focus of interest to absolutely every person. The first round of the project continues. For participation TRES Group recommends using the following algorithm of actions described in the instructions: https://forms.gle/DLJFQBTq4xKyAsLw5

The main element of investing in this project is the token of the Swiss company TRES. The TRES token is available for purchase on the UNISWAP decentralized exchange. Only if this token is available, it is possible to purchase FOSTER tokens during the Tokensale period.
The next round is scheduled for November 2021 for a total of 900.000 USDT, with a total of 480.000.000 FOSTER sold.
The last round of the Tokensale is scheduled for March 2022, where 800.000.000 FOSTER will be sold at $0.0125 for 1 FOSTER.

Solving the Climate Change Problem Using Blockchain Technology - Start of the FOSTER Project

2) The TREE token is a utility token of the company, intended for planting, cultivating, and caring for the tree.
1 TREE = 1 tree. This token will be available for purchase exclusively on the FOSTER portal.
After statistical calculations, registration of the company, purchase of land, and data generation, the price for 1 TREE token will be determined and declared, which will be formed based on the following components:
50% – purchase of new land, planting, care for 7 years, salaries of service personnel, and taxes.
30% – partner program.
20% – quarterly profit from the sale of TREE tokens, intended for all FOSTER token holders.

3) O2PLUS are utility tokens that do not have a limited issue. The issue of these tokens will be based on the issued international certificates for CO2 Credits generated By Foster reforestation activities. These certificates will be tokenized and placed on exchanges in the form of O2PLUS tokens.
Income from the sale of O2PLUS tokens will be distributed to all TREE token holders.

“The atmosphere is one and it has no boundaries, no matter where you planted a tree in New Zealand, Colombia, Paraguay or Alaska — you are already positively impacting our own global atmosphere.” — TRES Group GmbH.

Solving the Climate Change Problem Using Blockchain Technology - Start of the FOSTER Project

In addition, trees not only purify our air and help fight global warming, but also contribute to biological diversity.
A study conducted in Costa Rica found that planting a single tree can increase the number of bird species from almost none to 80.

The team believes that every person on the planet who breathes air should invest in at least 1 tree for the benefit of the future generation and the survival of planet earth as you knew it so far.

FOSTER was born from the passion of several people sharing similar values but bringing in diverse skills and experiences.

Mounir Bouaziz, FOSTER President (former Shell Vice President):

“I worked for Shell for 30 years and learned a lot about sustainability, Energy Transition and Global Warming challenges. For the next 30 years, I want to focus on Nature Based Solutions leveraging my international and diverse experience”.

Anton Katin, Board Member, CEO at SIMBA Storage:

“We are all first and foremost citizens of the planet Earth. I believe that by joining the efforts of all mankind, thanks to the technologies that we have today, we can leave the Earth clean and comfortable for our children. My planet deserves another chance.”

Alex Liakhovnenko, Board Member, CEO at TRES Group GmbH:

“Blockchain technology removes borders and allows everyone to contribute to make our planet a better place.”

Join the project and make the world around you a better place.

You can find out the details of participation in the current round by mail: zug@tres.swiss

This is a sponsored post. Learn how to reach our audience here. Read disclaimer below.

Source: Bitcoinnews.com

E-Commerce Startups Have a Massive Opportunity

E-commerce feels like it’s everywhere. But the truth is that even during a pandemic, e-commerce accounted for less than 15% of total retail sales in the U.S.

According to the United Nations, e-commerce only makes up about 19% of total global retail sales

E-commerce has a long way to go before it catches up with the rest of the retail space. And that’s why I’m so bullish on e-commerce startups. There’s so much room for disruption and growth. And there’s no shortage of market inefficiencies to fix.

The key for investors is to find e-commerce startups that are about more than “just e-commerce.”

E-Commerce Isn’t Easy

Building a successful e-commerce business is difficult. There are a host of problems to figure out, including:

  • How do you deliver the product (the last mile)?
  • How do you get the product to the delivery people?
  • How do you ensure you have a product that people want to buy?
  • How do you get people to discover your product?
  • How do you ensure a good shopping experience?

Delivery is an insanely difficult problem to solve. So is fulfillment. Amazon just makes it look easy.

As a result, many retailers outsource packaging and shipping to companies like Amazon and Instacart. Others outsource just the delivery.

Amazon and Shopify make setting up an e-commerce store fairly straightforward. Instacart makes it easier for brick-and-mortar retailers to jump into the game. And many retailers rely on their products being discovered on Amazon, Etsy and social media to generate sales.

But as vast and comprehensive as the current tools are, they don’t come close to addressing the needs of the entire retail market. That’s why despite the obvious convenience of online shopping — especially in a pandemic! — e-commerce represents less than 20% of the global market.

Products like alcohol, prescription medicine and super fresh produce just don’t fit neatly into the current e-commerce universe. And that presents a massive opportunity for startups.

Hidden Logistics

One of the biggest mistakes people make is assuming what Amazon does is easy. It isn’t. Amazon runs one of the world’s most sophisticated logistics operations. The scope of Amazon’s efforts is breathtaking. Consider this timeline:

  • In 2015, the U.S. Postal Service, UPS and FedEx delivered more than 97% of Amazon’s packages.
  • In 2019, Amazon shipped around 7 billion packages globally. In the U.S., Amazon’s homegrown delivery service delivered about 58% of those packages, according to Digital Commerce 360. Outside the U.S., Amazon delivered 48% of its packages. 
  • In 2020, Amazon delivered about two-thirds of the packages it shipped in the United States. The rest were delivered by UPS, Fedex and others.
  • In the coming years, Amazon will likely ship 80% or more of its customers’ packages.

In order to make all of this work, Amazon has built massive fulfillment warehouses throughout the country. When you order something that’s fulfilled by Amazon, workers at these warehouses pick up the goods, package them and ship them. Amazon’s shipping service then gets them to you.

Amazon’s internal systems are designed to optimize speed and efficiency to make sure customers get the shipments as quickly as possible.

But as big and efficient as Amazon is, there are many things that its system isn’t designed to handle — like two-hour (or even same-day) delivery of prescription medicine.

In order to deliver prescription medicine in just a few hours, you can’t have a warehouse located several hours away from the customer. The medicine won’t get there quickly enough.

You also need pharmacists on site to make sure nothing goes wrong with dispensing the medicine. And drivers trained to deliver prescriptions in a way that meets regulatory compliance.

This isn’t something Amazon is set up for. So it opens the door for startups like NowRx to fill the void.

NowRx is one of our favorite startups in the First Stage Investor startup portfolio. (If you’re not a First Stage Investor member, click here to sign up.) It’s figured out how to dispense and deliver prescription medicines quickly and legally. And just as important, NowRx has figured out how to get patients and doctors to use its service.

So while NowRx looks like an e-commerce play, it’s actually much more than that. NowRx is operating in the prescription medicine space — NOT in classic e-commerce. It’s competing more with Walgreens and CVS than it is with Amazon. So as you evaluate NowRx’s potential, you have to make sure that you identify the right competitors. Otherwise, you could make a flawed investment decision.

Another example of a startup being more than just an e-commerce company is Leap Club. Leap Club is operating in India. It delivers organic fruit and vegetables to consumers within 12 hours of them being harvested. And all of the groceries are ordered using WhatsApp.

Like NowRx, Leap Club’s business is much more than e-commerce. Leap Club has to create and maintain an incredibly efficient supply chain of certified organic food. Getting organic food delivered within 12 hours of harvesting would be a major achievement in the U.S. Doing so in India is exponentially more difficult. 

First, Leap Club has to make sure its organic food sources are close enough — and reliable enough — to consistently deliver food within 12 hours of harvesting. It has to understand how much needs to be harvested on a daily basis for farmers to create a viable business. It needs to understand how to get the food from the farms to New Delhi, where it’s currently operating. And because it’s outsourcing final (last mile) delivery, it has to figure out how to get its food into the hands of third-party delivery people in time for them to brave notoriously bad traffic. (Sitting in traffic for hours is a common occurrence in New Delhi.)

This is not your ordinary e-commerce startup. And that’s before you get to the fact that everyone is ordering via WhatsApp! (India is WhatsApp’s largest market.)

The traditional e-commerce playbook wouldn’t work for Leap Club. That’s why it doesn’t have to worry about competing with Flipkart or Amazon. Instead, it has to worry about other organic grocers or even farmers that can figure out the supply chain and logistical challenges of just-in-time organic food delivery.

Rewriting the Playbook

Leap Club and NowRx are just two examples of e-commerce startups doing much more than selling stuff online. They’re sophisticated businesses that throw out the traditional e-commerce playbook because it doesn’t apply to the markets they’re operating in.

And because the traditional e-commerce business models don’t work, legacy e-commerce companies like Amazon will struggle to compete with these startups. Amazon (or Flipkart) just isn’t designed for this.

So as you evaluate startups moving forward, don’t automatically dismiss e-commerce companies because you think they can’t compete with Amazon. Sometimes, e-commerce startups are more than just e-commerce startups. And that’s where the best opportunities lie.

The post E-Commerce Startups Have a Massive Opportunity appeared first on Early Investing.

Source: Early Investing

Entertainment Giant Fox Teams up With Bento Box to Manage $100 Million NFT Creator Fund

Entertainment Giant Fox Teams up With Bento Box to Manage $100 Million NFT Creator Fund

Fresh off the heels of announcing a non-fungible token (NFT) organization called Blockchain Creative Labs and a blockchain-based animated series, Fox Broadcasting Company has revealed it’s invoked a $100 million fund with Bento Box Entertainment (BBE) that aims to bolster NFT content creators.

Fox and Bento Box to Fuel NFT Ecosystem With a $100 Million Fund

On June 15, the New York-based television network and entertainment firm Fox revealed a $100 million fund that aims to help further NFT creators and the industry. Fox and its subsidiary Bento Box Entertainment (best-known for producing the show “Bob’s Burgers”) have explained that the companies are working with Blockchain Creative Labs to further the venture. The $100 million fund news follows the introduction of Blockchain Creative Labs revealed in mid-May.

BBE was founded by Scott Greenberg, Joel Kuwahara, and Mark McJimsey and was acquired by Fox in 2019. The two firms believe the new venture will help innovate and mold the blockchain-based NFT ecosystem that has seen massive growth during the last 12 months. BBE’s cofounder and CEO, Scott Greenberg detailed on Tuesday:

Fox and Bento Box are uniquely situated to bring exciting offerings to the digital goods, token, and NFT marketplace.

Fox Entertainment CEO, Charlie Collier, detailed during the announcement that BBE’s use of blockchain improves upon the company’s craft. “[Blockchain technology has bolstered a] new marketplace that is a natural extension of Bento Box’s talents, one that allows the team to support, elevate and reward innovators and artists in new and creatively exciting ways,” Collier said on Tuesday. Collier added:

Our new company, Blockchain Creative Labs, also under Scott and Bento Box, will help shape and grow the fast-evolving world of creatively-led digital goods and tokens.

Fox and BBE alongside the recently invoked Blockchain Creative Labs, have yet to announce any product launch dates or reveal when the blockchain-based animated series crafted by Dan Harmon called “Krapopolis” will air. Greenberg explained that BBE team will always be “entrepreneurs at our core” and said that the company has had “longstanding relationships within the creative community.”

“BBE will harness this technology to bridge together brands and producers with fans in new and interesting ways, and we’re looking forward to seizing this opportunity,” Greenberg further remarked. Fox aims to show the world its tokens and NFTs in the future and noted during the last announcement that an NFT marketplace was also being constructed.

What do you think about the entertainment firm Fox revealing a $100 million fund toward NFTs and fueling Blockchain Creative Labs? Let us know what you think about this subject in the comments section below.

Source: Bitcoinnews.com

Top Economist Steve Hanke Calls El Salvador’s Bitcoin Adoption Decision Stupid

While the entire crypto industry was extremely delighted with the news of El Salvador’s bitcoin adoption as a legal tender, several financial analysts have called out the country’s president and congress for the decision.

A “Very Stupid” Decision

In a recent report, Steve Hanke, a professor of Applied Economics at the John Hopkins University, has called the decision a “very stupid” one.

According to him, El Salvador is one of the three officially dollarized American nations, and adopting Bitcoin as a legal tender will ultimately cause its economy to collapse.

He alleged that the decision was influenced by “dark forces” who wish to completely drain the entire US dollar in circulation.

Bitcoin for Daily Transactions

“Dark forces clearly are behind this, that is the criminal element and the reason for that is the criminal element wants to be able to get in and actually obtain real legal tender,” Hanke said.

He also pointed out that it will be very difficult to use bitcoin in day-to-day transactions as the transaction rate of bitcoin will be too high when converting it to US dollars.

Hanke believes that a fundamental problem with cryptocurrencies is that it is expensive and difficult to convert crypto assets to “actual” legal tenders.

“You can’t convert Bitcoin, for example, cheaply and easily into U.S. dollars, pounds sterling, euros, and legal tenders you can use in a store,” he said.

Steve Hanke: Bitcoin is Not a Scam

Although Hanke does not favor El Salvador’s bitcoin move, the economist clarified that he does not view the cryptocurrency as a scam. However, he believes that bitcoin is a highly speculative and risky asset that has no fundamental value.

He reiterated that the leading cryptocurrency is not a currency and would eventually lose its value due to its speculative nature.

“[Bitcoin] is not a currency, it’s a very risky speculative asset. I won’t call it a scam… its fundamental value is zero, so bitcoin will face competition and will eventually see its value be driven down considerably over where it is right now.”

El Salvador made waves last week when it officially adopted bitcoin as a legal tender. However, considering the backlash it is currently facing over the decision, will other countries follow suit? Only time will tell.

Featured image courtesy of Phi Delta Theta

Source: Crypto Potato

Lordstown Motors Stock Was a Royal Letdown – Save Yourself Now

The hits just keep on coming for Lordstown Motors Corp. (NASDAQ: RIDE).

Lordstown Motors stock was one of the hot stories of 2020 as the electric truck maker came public via a merger with a special purpose acquisition company (SPAC). It was going to revolutionize the market for electric trucks, and the future was full of battery-powered awesomeness.

Everybody loved this company at first. It had bought an idle automobile factory from General Motors Co. (NYSE: GM) and would be the savior of Lordstown, Ohio.

Former Vice President Mike Pence spoke at the factory opening.

Former President Trump praised Lordstown Motors and had one of its trucks parked at the White House for all to see.

Joe Burrows, the star quarterback for the Cincinnati Bengals, signed on as a company spokesperson.

The company came out of the gate talking about the enormous book of preorders it had for the Endurance commercial truck it would produce.

Everything looked rosy. Lordstown motors stock soared 190% after the SPAC merger last year.

However, a few small problems have tanked the stock all the way back down.

Why Lordstown Motors Stock Is Down

Noted short-seller Hindenburg Research recently released a report suggesting that the preorders were phony. It also mentioned that some companies said to have placed large orders for Endurance trucks could never afford to pay for them.

Hindenburg further claimed that Lordstown did not have a workable engine yet, and the truck would not be production-ready for years. Therefore, there was no way they would be selling trucks as soon as the promised September 2021 launch date.

It seems that many if not all of Hindenburg Research’s claims are true.

Last week, Lordstown filed a statement with the SEC that included the dreaded going concern clause.

In its 10Q Quarterly SEC filing, Lordstown said that “These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year.”

The company reported having $578 million in cash left, which was not enough to start commercial production of the Endurance line of trucks.

Now, it will pursue more financing to get the truck to market.

Good luck with that.

The cost of borrowing money or selling new equity is going to be astronomical.

Why would you want to invest in this company or lend it money?

It lied about how many cars were ordered.

It lied about when it would be able to produce cars.

The SEC filing also noted that weaknesses in its internal controls over financial reporting just might have caused material misstatements in its financial statements as well.

The lawsuits will be devastating.

Even if it can overcome all of those hurdles, it will have to compete with Ford Motor Co. (NYSE: F) and General Motors for business. These two companies have dominated the internal combustion pickup trucks market, and they will dominate the market for electric trucks.

Think of this as a purchasing manager would. His company has been buying Fords for decades. So if the Ford truck he buys is a lemon, that’s Ford’s fault.

If the company has problems with trucks they bought from newcomer Lordstown Motors, that’s the purchasing manager’s fault.

Next stop, the unemployment line.

The CEO and CFO of the company both resigned this week when the news of the going concern filing became widely known.

Sell Lordstown Motors Stock Immediately

In the weird world of Wall Street, some think that Lordstown Motors can recover from this debacle with a new interim CEO.

We just don’t see it.

It has not sold a car yet. We have no clue how many preorders it actually booked or if those customers actually had the financial wherewithal to pay for the vehicle. It is unclear just when it can actually start producing vehicles.

When Lordstown Motors does start producing trucks, it will be against competition with massive customer bases and almost complete control of the existing commercial light truck industry.

Even these prices are now below the initial $10 price of the SPAC IPO last year. It doesn’t mean the stock is a bargain.

Shares of Lordstown stock today trade at a valuation of $1.5 billion. Lordstown has zero revenue and, of course, is losing money at a rapid rate.

An analyst at the brokerage firm RF Lafferty came out with a research report this week that rated the stock “Sell” with a price target of $3.

We think that may be a little high.

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Source: Money Morning

SEC Leaves Bitcoin and Cryptocurrency Off Regulatory Agenda 2021

SEC Leaves Bitcoin and Cryptocurrency Off Regulatory Agenda 2021

The U.S. Securities and Exchange Commission (SEC) has released its regulatory agenda which does not mention bitcoin or cryptocurrency regulation.

Bitcoin, Cryptocurrencies Not on SEC’s Latest Regulatory Agenda

The Office of Information and Regulatory Affairs released the Biden administration’s Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions last week. It details “the actions administrative agencies plan to issue in the near and long term,” which provides “important public notice and transparency about proposed regulatory and deregulatory actions within the Executive Branch,” the accompanying announcement explains.

Included in the agenda is the U.S. Securities and Exchange Commission (SEC)’s “annual regulatory agenda,” the agency independently announced, clarifying:

The report, which includes contributions related to the Securities and Exchange Commission, lists short- and long-term regulatory actions that administrative agencies plan to take.

Some of the items the SEC will consider include disclosures relating to climate risk, corporate board diversity, and beneficial ownership and swaps. The SEC will also focus on rules relating to SPACs and short sale disclosure reform. The full list can be found here.

SEC Chairman Gary Gensler commented: “To meet our mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation, the SEC has a lot of regulatory work ahead of us. I look forward to collaborating with my fellow commissioners and the dedicated staff to propose and finalize rules that will strengthen our markets, increase transparency, and safeguard investors.”

While bitcoin and cryptocurrency are not on the SEC’s regulatory agenda this year, Gensler has been talking about the need to protect investors and regulate cryptocurrency exchanges.

Last month, the chairman urged Congress to pass cryptocurrency legislation to protect investors, adding that cryptocurrency exchanges needed more regulation. In addition, the SEC cautioned investors about funds trading in bitcoin futures last week. So far, the agency has brought 75 crypto-related enforcement actions. Meanwhile, a growing number of companies are seeking approval to trade bitcoin exchange-traded funds (ETFs).

Do you think the SEC will either approve a bitcoin ETF or impose new crypto rules this year? Let us know in the comments section below.

Source: Bitcoinnews.com

Bitcoin and other cryptos lose steam as summer lull sets in

The bitcoin (BTC-USD) price shot back above $40,000 (£28,346) following sessions of losses, but is treading water as fund managers say the cryptocurrency is in a bubble despite the price crash.

According to a Bank of America survey, 81% of fund managers say bitcoin is still a bubble. The flagship crypto fell around 37% last month and its price is down 38% from its $64,829 mid-April peak.

The bitcoin price, which was boosted this week by bullish comments from money manager Paul Tudor Jones and Tesla (TSLA) boss Elon Musk, was once again yo-yoing on Wednesday. It declined 3% to $38,720 on Wednesday afternoon in London.

Other cryptocurrencies have been following a similar trend, with ethereum (ETH-USD) – the second biggest crypto by market cap – falling 5% to trade at $2,420. Meme token dogecoin (DOGE) dropped 3.2% to $0.30.

Cryptos have been boosted by institutional support recently. Several organisations…

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