Good morning, Coin Discoverers!

CRYPTO

• BTC: $62,959.70(+0.14%)YTD (+42.43%)

• ETH: $2,680.91(+0.10%)YTD (+13.92%)

• BNB: $551.65(+0.58%)YTD (+76.28%)

*Crypto numbers as of 5:00 am EST on August 27th

AI Could Help You Navigate the Next Bitcoin Crash on Coinbase Without Major Losses

On Monday, Coinbase announced the development and deployment of a machine learning model designed to predict spikes in user traffic and automatically scale its resources in response. This AI-driven solution is aimed at addressing the persistent issue of platform crashes during volatile market conditions, ensuring the platform remains efficient and operational even during unexpected surges in activity.

The company's blog explains that traditional scaling methods often fall short when traffic is already surging, as it becomes too late to effectively manage the load. To combat this, Coinbase's new automatic scaling solution leverages machine learning to anticipate traffic spikes, enabling the platform to increase its resources before the influx of users, thereby preventing downtime and enhancing overall platform reliability.

Abra Reaches Settlement with SEC Over Unregistered Sale of Crypto Asset Securities in Abra Earn Program

In a July 2020 case, Abra reached a settlement with the SEC over allegations that the company had improperly utilized customer digital assets for its own gain and to finance interest payments. The SEC accused Abra of mismanaging these assets, thereby violating regulatory standards meant to protect consumers and ensure fair financial practices.

Additionally, the SEC's statement on Monday highlighted that Abra had offered and sold securities that were not exempt from the agency's registration requirements. By bypassing these crucial regulatory steps, the firm allegedly failed to comply with established securities laws, prompting the SEC to take action.

MicroStrategy ETF Reaches $127M in Assets, Surpasses $100M in Daily Trading Volume

The recently launched MicroStrategy ETF ($MSTX) has experienced remarkable growth, amassing $127 million in assets within just six days of its inception. This rapid surge highlights the significant investor interest in the ETF, which provides 1.75x leverage on MicroStrategy’s shares (MSTR). The swift asset accumulation underscores the enthusiasm surrounding this new investment vehicle, as investors seek to capitalize on the potential gains from leveraged exposure to MicroStrategy’s stock.

The strong grassroots interest in the $MSTX ETF reflects a growing confidence among investors in the leveraged strategy it offers. The speed at which the assets have accumulated points to a broader belief in the value of MicroStrategy’s underlying assets, coupled with the potential for enhanced returns through leverage. This early success suggests that $MSTX could become a popular choice for those looking to amplify their exposure to MicroStrategy’s performance.

Russia to Test Cryptocurrency Exchanges for Cross-Border Transactions

Starting September 1, Russia will begin trials of cryptocurrency exchanges and digital tokens for cross-border transactions. This move is designed to ease the payment challenges that Russian companies have encountered due to international sanctions, offering an alternative method to facilitate global trade.

The trials will involve the National Payment Card System, which will play a key role in converting rubles to cryptocurrencies and vice versa. According to sources familiar with the matter, this initiative reflects Russia's efforts to find new avenues for international payments amid ongoing financial restrictions.

STOCKS

• DOW: 41,240.53(+0.16%)

• S&P: 5,616.84(-0.32%) 

• NASDAQ: 17,725.94(-0.85%)

*Stock numbers as of market close on August 26th

Media Executive Bronfman Withdraws from Bid to Acquire Paramount

Media veteran Edgar Bronfman Jr. announced on Monday that he is withdrawing from the bid to acquire Paramount Global (PARA.O). The decision comes after difficulties with the involvement of high net worth individuals, who were hesitant to disclose their personal financial details to Paramount's special committee and advisors, according to a source familiar with the situation.

In a statement, Bronfman expressed continued admiration for Paramount Global, highlighting its exceptional collection of brands, assets, and talent. Despite the differences that led to his withdrawal, he remains optimistic about the company’s future, noting that all parties involved share a belief in Paramount's potential for continued success.

Trintech's Owners Consider $2 Billion Sale of Financial Software Company

Private equity firms Summit Partners and Vista Equity Partners are evaluating the possibility of selling Trintech, which could see the financial software provider valued at around $2 billion, including debt. This potential sale is being closely examined by those familiar with the matter.

The owners of Trintech are collaborating with Deutsche Bank’s investment bankers to manage the sale process. This move is expected to generate interest from other private equity firms, although details of the discussions remain confidential and are being reported by sources who wish to remain anonymous.

REAL ESTATE

• 15-year: 5.96%

• 30-year: 6.43%

*Mortage rates via Mortgage News Daily

Monday Proves Quiet Despite Morning Volatility

This morning's durable goods data introduced a hint of volatility, briefly sparking a rally at 8:30 a.m. However, by 9:30 a.m., bonds retreated into weaker territory amidst NYSE trading activities. Throughout the day, the market experienced several mini-rallies and sell-offs, ultimately settling into an extremely narrow range near unchanged levels.

Mortgage-backed securities (MBS) outperformed Treasuries, a trend that aligns logically with the Treasury auction week. Overall, the day’s trading activity felt almost as uneventful as a three-day weekend, despite the initial fluctuations.

TECH

Ideogram Unveils New AI Image Model to Rival Flux and Midjourney

Ideogram AI launched Ideogram 2.0, the latest iteration of its text-to-image model designed to challenge the leading players in the generative AI field. This new release marks a significant step in Ideogram's efforts to make a notable impact in a competitive landscape.

The unveiling of Ideogram 2.0 comes shortly after the introduction of Flux.1 as the primary image generator for Grok on X (formerly Twitter), reinforcing Flux.1’s role as a major competitor in the evolving AI space. Other open models vying for dominance include Auraflow, KwaiKolors, Hunyuan, Lumina, and Kandinsky 3, all seeking to establish their own foothold in the post-Stable Diffusion XL (SDXL) era.

QUICK RECAP

#1. Belgian biopharmaceutical firm UCB (UCB.BR) announced it will sell its Chinese neurology and allergy business for $680M to CBC and Mubadala.

#2. Canada matched the U.S. and EU with a 100% tariff on Chinese EVs and 25% on steel and aluminum.

#3. Canada's S&P/TSX index hit a record 23,348.97 on Monday, rising 62.89 points, boosted by oil and upcoming bank earnings.

#4. HSBC Holdings is considering selling its South Africa operations, focusing on Asia, Bloomberg reported, with no retail banking involved.

#5. An arbitration panel will assess Hess's secret oil value in Guyana, central to Chevron’s $53 billion offer for Hess.