Is there correlation between the value of ICOs, BTC, and ETH?

From the study:

"We study this correlation empirically by collecting data on the pricing of the largest 50 ICOs and test whether the behaviour of ICO returns are correlated to the returns of Bitcoin and Ethereum. If ICOs are truly pricing their unique business models, we would expect their returns to be idiosyncratic with low correlations. If, on the other hand, they are simply seen as an investment vehicle to generate excess returns based on a ‘cryptocurrency bubble’, we would expect them to be highly correlated to prices of the major cryptocurrencies."

[...]

"Correlations remained positive but low while the cryptocurrency phenomenon was taking off and Bitcoin and Ethereum prices were increasing. However, once the price of the two cryptocurrencies starts falling, correlations increase and reach a very high level, signalling that daily news on the future of Bitcoin and Ethereum seems to be moving the price of all ICO tokens. It seems that as the ‘cryptocurrency bubble’ bursts, the price-discovery mechanism of ICOs collapses and all their prices just track the value of Bitcoin or Ethereum."

By Antonio Fatás and Beatrice Weder di Mauro.


Defending the billionaires

In an interview, Schultz was asked whether billionaires have too much power. He responded by noting that the moniker “billionaire” has become a “catchphrase” and proceeded to reframe the question: “I would rephrase that and I would say that people of means have been able to leverage their wealth and their interest in ways that are unfair.” So he didn’t necessarily disagree with the premise of the question. Nor did he say that other people shouldn’t use the term “billionaires.”

For the record, he also noted that such people have “unbelievable influence,” and that speaks to the problem of inequality. And he included corporations (not just people) and the political ideologies of the two major parties as part of the problem.

From Tyler Cowen’s Bloomberg column.

The rise and fall of Carlos Ghosn

This is a good primer on the ongoing saga of Ghosn’s arrest. It gives background on the man himself, on some of the key people involved, their potential motivations, and the environment they’re operating on.

As Saikawa settled into the job, however, the tone of their relationship changed. His early tenure was dominated by revelations that for more than three decades, some Nissan cars had been inspected by auditors who weren’t properly certified. More than a million vehicles had to be recalled, and the company took the unprecedented step of shutting down its Japanese production for two weeks to investigate. Although Saikawa had been in the job less than a year, he absorbed the blame, performing the ritual apologies expected of dishonored Japanese bosses. He also took a voluntary pay cut, shrinking a compensation package that was already a small fraction of Ghosn’s. Ghosn, who’d actually been in charge for much of the period at issue, never formally apologized and even, according to a person with knowledge of the matter, chided Saikawa for moving too slowly to address criticism and implement an action plan.

From Bloomberg Businessweek.

Invest in a hedge fund, tax-free

The $87 million that employees initially allotted to the company IRA plan in 2012 swelled to $664 million by the end of 2017, including $574 million in Medallion, the filings show. In turn, the IRA money -- held by about 250 employees -- grew to more than 4 percent of Medallion’s gross assets from about 1 percent five years earlier.

“Roth IRAs are hugely tax advantaged,” said Len Burman, a co-founder of the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution. “If you are expecting to earn a rate of return of 20 percent or higher, it turns out to be a really good tax shelter.”

This is still restricted to employees of the fund, but this is so good that if it’s made available outside, it might become one of the primary vehicles for the average investor.

From Miles Weiss at Bloomberg.

The value of a stock ticker

Weekend Unlimited Inc. shares surged as much as 65 percent in early trading after the pot firm said Friday that it won the first-ever random lottery for a Canadian ticker symbol. The company debuted on the Canadian Securities Exchange on Oct. 15, two days before the country legalized recreational marijuana. The stock had fallen 57 percent since the Oct. 15 market close, bringing its market value to C$28.6 million before trading opened Friday.

Weekend Unlimited Inc., YOLO, POT. This is a masterclass in company branding. From Bloomberg.

Missing cold wallets

For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful.

From their website. Another reason to never leave crypto at these exchanges and go set up a personal hardware wallet.