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Bitcoin is back up off its $29,000 bottom for the week, on the upswing and gathering strength for a move above $34,000. This weekend’s trading activity will be important; more selling could mean a re-test of $29,000, but a weekend of buying should signal higher prices ahead.
Cool as that is, that’s not what’s got me excited today.
I caught a buried “back page” business story that should be front-page news for every cryptocurrency investor.
What could be one of the year’s most exciting potential opportunities is taking shape right now. It’s early, for sure, but the more you know about it, the better position you’ll be in to cash in.
Here’s a quick rundown of what to watch for…
This Microcurrency Exchange Plans to Go Public
Peter Thiel ought to be a familiar name to most investors. He’s one of the original “PayPal Mafia” who got PayPal Holdings Inc. (NASDAQ: PYPL) up and running, he co-founded Palantir Technologies Inc. (NASDAQ: PLTR) – a Big Data powerhouse and one of 2020’s best IPOs – and, don’t forget, Thiel was the very first outside investor in Facebook Inc. (NASDAQ: FB).
Safe to say, he’s got the golden touch. And clearly, he knows an awesome investment opportunity when he sees one.
His latest investment is a cryptocurrency exchange with a name that’s dead-on: Bullish.
Right now, Bloomberg is reporting Bullish is in talks with a special purpose acquisition company (SPAC) called Far Peak Acquisition Corp. (NYSE: FPAC). If you’re not familiar, a SPAC is like a “blank check” company – publicly listed, but with few to no assets and no operations to speak of. Like a stock without a company. A smaller, private company with assets and operations can “merge” with the SPAC to go public much faster and far more cheaply than the traditional IPO route.
Obviously, nothing’s set in stone yet, and no one’s come out with a number, but the Bullish valuation figures being talked about seem to run from $10 billion to $12 billion, and clearly at least some of that depends on the fluctuations we’re seeing in the crypto markets right now. But from what I can see, the valuation’s in the right ballpark, unlike some other IPOs we’ve seen lately.
Far Peak hit the New York Stock Exchange late last year with the stated aim of targeting financial technology “fintech” companies – a cryptocurrency exchange sure qualifies.
For its part, Bullish, owned by Thiel and blockchain platform Block.One, launched last month to less fanfare than I expected. Bullish is very well capitalized, to the tune of $10 billion or so in cash and - you guessed it - digital assets like Bitcoin and EOS.
Now, at this point, we’ve already got more microcurrency exchanges than you can shake a stick at. (Coinbase, anyone?)
But Bullish offers some cool, unique services that I think could add a lot of value and might have users and investors beating a path to its door.
Disruption is pretty much guaranteed.
Bullish will do everything a regular microcurrency exchange does, but it’ll also offer market-making, lending, money-management, and last but not least, a heck of a lot of liquidity. Normally, those are offered only by old-school banks, but it looks like Bullish is angling to be a big disruptor there. I’m excited.
Now, it’s important to note that none of this is a done deal yet – like I said a minute ago, as of today, we’re very early on in the process. Things are still gelling.
But I really like what I see here, with businesses like this coming to the fore and some of the world’s smartest investors betting big on microcurrencies. Did I mention I was excited?
Shares of FPAC, which would likely be Bullish’s ticker symbol should the deal come to fruition, were trading at just under $10 on midday Friday.
You know me; normally I’m all about trading. But not in this case - there are just a few thinly traded options available, and liquidity isn’t where it would need to be. For aggressive folks comfortable with risk, this could be good for a very small speculative position, but it’s not a stock you want to bet the farm on, particularly early.
But it is one to watch closely – like a hawk – as something very big could happen at any time.
That’s how crypto is; at any second, opportunities could explode onto the scene.
Other times, the action can be in much “quieter” corners of the crypto market. Right now, I’m targeting a crypto that costs just $0.25 – a quarter. The profit potential could be extreme here, because coins just like it have given my readers a crack at 200%, 169%, 150%, and 300% from March to May of this year. I think there could be more where that came from – click here, and I’ll fill you in on the details.
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.