Prominent investor Cathie Wood has stated that Binance’s legal troubles in the United States will work in favor of Coinbase, as it would remove its primary competition. Both Binance and Coinbase, the world’s largest cryptocurrency exchanges, are facing regulatory scrutiny after being sued by the Securities and Exchange Commission (SEC) for allegedly selling unregistered securities.
“What’s a security, about staking”: Wood
Wood, speaking to Bloomberg Television, highlighted the regulatory scrutiny faced by Binance, including allegations of criminal activities and fraud. She believes that the increased scrutiny on Binance will lead to the disappearance of competition for Coinbase, ultimately benefiting the latter in the long term. Wood clarified that Coinbase is not accused of any criminal activity and mainly deals with questions related to securities and staking.
Interestingly, amidst all the legal drama Ark Investment Management, led by Cathie Wood, recently increased its holdings of Coinbase shares following the SEC’s action. Wood’s firm purchased 419,324 shares of Coinbase, showing confidence in the company despite the regulatory challenges.
Still, Rely on the $1 Million Target for BTC?
Whereas in regards to Bitcoin, Wood remains confident in her target price of $1 million, considering it as a hedge against inflation. She believes Bitcoin’s value will rise due to increased uncertainty and volatility in global economies. Wood also mentioned that the risk of deflation, rather than inflation, is now more significant, and Bitcoin serves as a hedge against counterparty risk in the traditional financial system.
As of now, Bitcoin started a fresh decline after it failed to clear the $27,400 resistance. However, the price is trading below $26,600 and the 100 hourly Simple moving average.
Tesla’s AI Dominance: Wood Shows Massive Data Collection
During her address to the Morgan Stanley Australia Summit, Wood also expressed her belief in Tesla’s potential as a major player in artificial intelligence (AI). She emphasized Tesla’s vast collection of real-world driving data, thanks to its large fleet of vehicles. Wood expects Tesla’s AI capabilities to contribute to the scaling of independent taxi projects, predicting substantial revenue growth in the autonomous taxi platform by 2030.
Despite facing criticism for reducing its holdings in Nvidia earlier this year, Wood defended her decision, citing concerns over the boom-bust cycle in the computer-chip industry.
Source: https://coinpedia.org/news/cathie-wood-sees-binances-legal-troubles-as-an-advantage-for-coinbase/