Planned – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Fri, 27 Jun 2025 08:50:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.9 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Planned – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 The Supreme Court’s disastrous new abortion decision, in Medina v. Planned Parenthood https://earlybirdsinvest.com/the-supreme-courts-disastrous-new-abortion-decision-in-medina-v-planned-parenthood/ https://earlybirdsinvest.com/the-supreme-courts-disastrous-new-abortion-decision-in-medina-v-planned-parenthood/#respond Fri, 27 Jun 2025 08:50:13 +0000 https://earlybirdsinvest.com/the-supreme-courts-disastrous-new-abortion-decision-in-medina-v-planned-parenthood/

Federal law says that “any individual eligible for medical assistance” from a state Medicaid program may obtain that care “from any institution, agency, community pharmacy, or person, qualified to perform the service or services required.” In other words, all Medicaid patients have a right to choose their doctor, as long as they choose a health provider competent enough to provide the care they seek.

On Thursday, however, the Republican justices ruled, in Medina v. Planned Parenthood, that Medicaid patients may not choose their health provider. And then they went much further. Thursday’s decision radically reorders all of federal Medicaid law, rendering much of it unenforceable. Medina could prove to be one of the most consequential health care decisions of the last several years, and one of the deadliest, as it raises a cloud of doubt over countless laws requiring that certain people receive health coverage, as well as laws ensuring that they will receive a certain quality of care.

All three of the Court’s Democrats dissented.

Justice Neil Gorsuch’s opinion in Medina is a trainwreck of legal reasoning. It’s hard to think of a principled reason why, two years after the Court took a much more expansive approach to Medicaid law in Health and Hospital Corporation v. Talevski (2023), the Republican justices abruptly decided to reverse course. It is easy, however, to see a political reason for the Medina decision.

The plaintiff in Medina, after all, is Planned Parenthood, an abortion provider Republicans love to hate. Medina involved South Carolina’s attempt to forbid Medicaid patients from choosing Planned Parenthood as their health provider, a policy that violates federal law.

In an apparent attempt to spite Planned Parenthood, the Republican justices have now effectively repealed that law. This is not aberrant behavior from this Court’s Republican majority.

Four years ago, before the Court overruled Roe v. Wade and eliminated the constitutional right to an abortion, the justices considered a Texas law which permitted private bounty hunters to sue abortion providers and collect bounties of at least $10,000 from them. The Texas law was an obvious attempt to cut off abortion rights in violation of Roe, but five of the Republican justices joined an opinion by Gorsuch, which held that this sort of law could not be challenged in federal court because, Gorsuch claimed, abortion providers must wait until after they are hauled into court by a bounty hunter to assert their rights.

Medina fits within the same legal tradition. When a case involves abortion providers, the Court’s Republican majority is frequently willing to twist the law into any shape necessary to ensure that the abortion providers lose.

What was the specific legal issue in Medina?

A federal law known as “Section 1983” lets state officials be sued if they deprive someone of “any rights, privileges, or immunities secured by the Constitution and laws.” This is arguably the most important civil rights law ever enacted by Congress. Without it, many federal laws and constitutional provisions would be unenforceable.

Medina turns on Section 1983’s reference to “rights” protected by federal law. Past Supreme Court decisions establish that not all federal laws create a right that can be enforced under Section 1983 and so the Court has developed a set of rules to determine which laws do.

Before Thursday’s decision in Medina, the key case laying out this framework was Talevski. Talevski held that a federal law creates enforceable rights when it is “‘phrased in terms of the persons benefited’ and contains ‘rights-creating,’ individual-centric language with an ‘unmistakable focus on the benefited class.’”

Thus, before Thursday, the key question was whether a law’s text focuses on the individuals who benefit. A hypothetical federal law which provides that “no state may prevent a hungry person from eating at Taco Bell” would be enforceable, under Talevski, because this hypothetical law centers the people who benefit from it (people who are hungry). A similar statute stating that “states shall not impede access to cheap burritos” would likely not be enforceable under Talevski, because it does not mention who is supposed to benefit from these burritos.

Under Talevski, Medina is an easy case, and it should have ended in a 9-0 victory for Planned Parenthood. Here is the relevant statutory language from the Medina case:

A State plan for medical assistance must … provide that … any individual eligible for medical assistance (including drugs) may obtain such assistance from any institution, agency, community pharmacy, or person, qualified to perform the service or services required (including an organization which provides such services, or arranges for their availability, on a prepayment basis), who undertakes to provide him such services.

This law is full of the kind of “individual-centric language” demanded by Talevski. It provides a right to “any individual.” It provides that these individuals “may obtain” care from their chosen provider. And it concludes with a pronoun (“him”) which refers back to the individuals who benefit from this law.

There is simply no way to reconcile Gorsuch’s Medina opinion with Talevski.

So how does Gorsuch try to get around Talevski?

The Republican justices largely try to get around Talevski by ignoring it, or by misrepresenting what it said. Notably, the key words laying out Talevski’s legal rule — that federal laws are enforceable through private lawsuits if they are “phrased in terms of the persons benefited” — appear nowhere in Gorsuch’s opinion.

Instead, Gorsuch introduces some new principles into federal Medicaid law that are likely to confuse judges who must apply his decision to other provisions of the Medicaid statute.

In its brief, for example, South Carolina suggested that a federal law must use the magic word “right,” or it is unenforceable under Section 1983. Gorsuch’s opinion doesn’t go quite this far, but it does repeatedly point out that the provision of Medicaid law at issue in Talevski, which the Court held to be enforceable, uses this magic word in its text.

Unlike Talevski, however, Medina does not articulate a clear legal rule which lower court judges can apply to other provisions of Medicaid law. It does not even explicitly overrule Talevski. Instead, Gorsuch mostly just points to some random features of the law at issue in Medina, and then leaves readers to guess how to determine which Medicaid laws are still enforceable.

Gorsuch, for example, finds it quite significant that a different provision of federal Medicaid law allows states to exclude some providers who are convicted of a felony from their Medicaid program — a fact that is completely irrelevant under Talevski. He also notes that the provision at issue in Medina “appears in a subsection titled ‘Contents.’”

It’s hard to understand how this title is relevant. Moreover, this segment of Gorsuch’s opinion appears to conflict with the explicit text of a federal law, which states that a provision of Medicaid law “is not to be deemed unenforceable because of its inclusion in a section…specifying the required contents of a State plan.”

Gorsuch also includes an ominous line suggesting that, in the future, his Court will read Medicaid laws very narrowly: “Though it is rare enough for any statute to confer an enforceable right,” Gorsuch claims, “spending-power statutes like Medicaid are especially unlikely to do so.”

Thursday’s decision, in other words, is likely to have sweeping implications for low-income Americans’ health care, even if it was handed down solely to wound Planned Parenthood. Federal Medicaid law is riddled with provisions governing how states must operate their Medicaid programs, including requirements governing who must be covered, and rules governing patient safety. The Talevski case, for example, concerned a law which prohibits nursing homes from using psychotropic drugs “for purposes of discipline or convenience” when they are “not required to treat the resident’s medical symptoms.” Under Medina, many of these laws may now be rendered unenforceable.

It should be noted that, even under Gorsuch’s decision, there is still one possible way to enforce the law permitting Medicaid patients to choose their health providers — the federal government could cut off some or all Medicaid funding to South Carolina. Realistically, however, this remedy would only make matters worse. It does not help Medicaid patients to take away their funding, and so the federal government has historically been exceedingly reluctant to use this blunderbuss of an enforcement mechanism.

After Medina, that means that much of federal Medicaid law may effectively cease to function.

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Billionaire Winklevoss Twins-Backed Exchange Gemini Files With SEC For Planned IPO https://earlybirdsinvest.com/billionaire-winklevoss-twins-backed-exchange-gemini-files-with-sec-for-planned-ipo/ https://earlybirdsinvest.com/billionaire-winklevoss-twins-backed-exchange-gemini-files-with-sec-for-planned-ipo/#respond Sat, 07 Jun 2025 01:32:21 +0000 https://earlybirdsinvest.com/billionaire-winklevoss-twins-backed-exchange-gemini-files-with-sec-for-planned-ipo/

Gemini Space Station Inc., the crypto exchange and custody platform founded by Cameron and Tyler Winklevoss, has taken a significant step toward becoming a publicly traded company.

The firm announced Friday that it has confidentially submitted a draft registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC), signaling its intent to pursue an initial public offering (IPO) of its Class A common stock.

While specific details around the size and valuation of the offering remain undisclosed, the move positions Gemini among a growing list of crypto-native firms seeking a foothold in traditional capital markets.

The crypto exchange has been taking major steps to go public in the U.S., including hiring Goldman Sachs and Citigroup as its financial advisors for the IPO. Gemini had also settled a $5 million lawsuit by the Commodity Futures Trading Commission, while the SEC ended its investigation into the exchange earlier this year.

The timing aligns with renewed interest in digital asset IPOs after stablecoin issuer Circle (CRCL) started trading on the New York Stock Exchange (NYSE) this week. Shares of Circle surged in its first day of trading Thursday, closing at $83 after going public at $31. The stock is currently trading around $113, almost 264% higher than its IPO price.

Gemini’s offering, if completed, would mark a major milestone not just for Gemini but for the crypto industry’s ongoing quest for mainstream financial legitimacy.

The company noted that the IPO will proceed after SEC review and pending market conditions, per standard disclosure protocols.

Read more: Circle Shares Surge on NYSE Debut, Signalling Strong Appetite for Stablecoin Issuers

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Ethereum’s planned blob increases insufficient to sustain L2 transaction growth https://earlybirdsinvest.com/ethereums-planned-blob-increases-insufficient-to-sustain-l2-transaction-growth/ https://earlybirdsinvest.com/ethereums-planned-blob-increases-insufficient-to-sustain-l2-transaction-growth/#respond Sat, 19 Apr 2025 10:51:40 +0000 https://earlybirdsinvest.com/ethereums-planned-blob-increases-insufficient-to-sustain-l2-transaction-growth/

Ethereum (ETH) must address its scalability constraints to sustain the growth of layer-2 (L2) networks and avoid future transaction bottlenecks, according to The DeFi Report. 

The firm said in a recent report that as L2 networks scale user adoption and transaction throughput, competition for Ethereum’s limited blob space could increase costs and undermine the network’s broader scaling roadmap.

Ethereum supports L2s through “blobs,” low-cost data storage mechanisms introduced with Ethereum Improvement Proposal 4844 (EIP-4844). However, the current capacity of three target blobs per block risks becoming inadequate. 

Even after the upcoming Pectra upgrade, which will raise the target to six blobs per block, forecasts suggest that rapid L2 expansion could outpace available bandwidth. 

Simulations show that a 10x increase in transactions per second across major L2s, such as Base, Arbitrum, and Optimism, could push transaction fees to unsustainable levels, potentially reaching $0.64 per transaction.

Although planned upgrades, such as PeerDAS and Fusaka, are expected to expand blob capacity further, projections indicate that Ethereum will need to support at least 33 blobs per block to keep L2 transaction costs below $0.02. 

Without these upgrades, Ethereum risks congestion that could threaten the viability of the L2-centric scaling strategy.

Base as a case study

Base, Coinbase’s layer-2 blockchain, provides a tangible example of the opportunities and challenges inherent in Ethereum’s current model. Since its launch, Base has generated over $106 million in user fees, onboarded more than 155 million addresses, and bridged 1.9 million ETH, representing 1.6% of Ethereum’s circulating supply. 

Applications operating on Base have accrued $768 million in cumulative fees, reflecting substantial user demand and network activity.

Since its inception, Base has also contributed approximately $4.5 million in blob and settlement fees to Ethereum’s layer-1 validators, highlighting the intended economic synergy between L2 growth and Ethereum’s revenue model. 

However, despite Base’s success in expanding Ethereum’s reach, it also exemplifies the pressure placed on L1 infrastructure. Over the past six months, Base alone has averaged 93 transactions per second, a figure that, when multiplied across several scaling L2s, raises concerns about the sustainable allocation of blob space.

Although Base drives net-new demand for Etehreum and strengthens the broader network through applications and stablecoin growth, currently securing nearly $10 billion in total value, its scaling trajectory highlights the urgent need for Ethereum to maintain affordability and speed for end users across all L2s.

Outlook for Ethereum’s L2 strategy

The L2 roadmap represents a deliberate strategic pivot for Ethereum, moving toward a business model focused on security provision, settlement, and scalability services for external networks. 

In this model, L2s such as Base could offload transaction activity from the mainnet while generating economic value through blob fees.

However, the report argues that this model’s success hinges on Ethereum’s ability to scale blob capacity without introducing prohibitive costs. 

If scaling upgrades fail to keep pace with L2 adoption, Ethereum could face competitive pressure from alternative data availability solutions or even from competing L1s that can offer lower transaction costs at scale.

Current projections suggest that if transaction volume across major L2s expands dramatically without proportional upgrades to blob throughput, Ethereum will return to current fee levels on its base layer, negating the cost benefits intended by the L2 strategy. 

Ethereum’s annualized revenue under a tenfold L2 scaling scenario would approximate $1.4 billion, roughly equivalent to its fee generation over the past year.

In summary, Ethereum’s capacity to support a flourishing L2 ecosystem depends on continuous technical progress and execution related to the mainnet.

Failing to expand blob space effectively could jeopardize its role as the backbone of decentralized applications and settlement for the next generation of blockchain infrastructure.

Mentioned in this article
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Kraken to Offer Superfast Trading With Planned Launch of Colocation Service https://earlybirdsinvest.com/kraken-to-offer-superfast-trading-with-planned-launch-of-colocation-service/ https://earlybirdsinvest.com/kraken-to-offer-superfast-trading-with-planned-launch-of-colocation-service/#respond Mon, 17 Mar 2025 07:25:32 +0000 https://earlybirdsinvest.com/kraken-to-offer-superfast-trading-with-planned-launch-of-colocation-service/

Crypto exchange Kraken plans to launch a new colocation service in the coming weeks that will offer clients ultra-low latency trading, the company said in a press release Monday.

The service is for customers who need high speed execution, Kraken said, and traders operating out of London can expect latency of under a millisecond.

“Many exchanges offer colocation services, but Kraken’s approach is unique – we’re making it accessible to all partners and clients, not just institutions,” said Shannon Kurtas, head of exchange at Kraken, in the release.

Trading is all about speed, especially in volatile markets such as crypto, where a fraction of a second can make all the difference. Low latency services make use of sophisticated technology to give traders an edge by enabling them to execute orders in less than a millisecond.

“Colocation services in crypto are typically not widely accessible,” Kurtas said in emailed comments. “Kraken, however, has structured its offering to prioritize fairness and accessibility” and “our colocation service will be available to all clients, aligning with crypto’s core values of an open, fair, and transparent marketplace.”

“In addition to individuals and institutions who trade directly on Kraken, we also work with brokers, exchanges, and fintech companies that use our liquidity for their own products,” Kurtas said, and “these partners will also have access to colocation services once they become available.”

The exchange’s clients will have access to ultra-low latency trading from Kraken’s European data center by renting cloud compute from Beeks (BKS), a cloud computing and connectivity provider, that is listed in the U.K..

Select clients will be able to install physical hardware at Kraken’s data center, and access colocation services directly, the exchange said.

The crypto firm is considering launching an initial public offering (IPO) by the first quarter of 2026. The company believes the regulatory environment in the U.S. has sufficiently changed to make a public listing viable, Bloomberg reported earlier this month, citing people familiar with the matter.

Read more: SEC Plans to Drop Its Case Against Kraken, Firm Says

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Japan ushers in stablecoin era with SBI VC Trade’s landmark license and planned USDC listing https://earlybirdsinvest.com/japan-ushers-in-stablecoin-era-with-sbi-vc-trades-landmark-license-and-planned-usdc-listing/ https://earlybirdsinvest.com/japan-ushers-in-stablecoin-era-with-sbi-vc-trades-landmark-license-and-planned-usdc-listing/#respond Tue, 04 Mar 2025 17:37:06 +0000 https://earlybirdsinvest.com/japan-ushers-in-stablecoin-era-with-sbi-vc-trades-landmark-license-and-planned-usdc-listing/

SBI VC Trade has become Japan’s first company to receive official approval to handle stablecoins like USD Coin (USDC), marking a significant step in the country’s crypto market.

On March 4, the firm announced its registration as an “Electronic Payment Instruments Business Operator” under Japan’s updated regulatory framework. This milestone allows the platform to facilitate the use of stablecoins, following the revised Fund Settlement Act and Banking Act.

SBI VC Trade CEO Tomohiko Kondo confirmed the development on X, stating that the company is now the only firm in Japan with a stablecoin license.

He emphasized the company’s commitment to expanding USDC adoption and offering secure, compliant digital payment solutions.

A new era for stablecoins in Japan

With the new registration, SBI VC Trade plans to introduce a beta version of its USDC-related services on March 12.

According to the firm, a limited group of users will gain early access after scheduled system maintenance. The company aims to expand USDC support in phases, ensuring compliance with local regulations while enhancing Japan’s digital asset landscape.

SBI Holdings, the parent company of SBI VC Trade, has been actively strengthening its position in the stablecoin market. In November 2023, the financial giant signed a memorandum of understanding with Circle, the issuer of USDC, to explore new business opportunities.

This latest approval adds to the firm’s existing financial licenses, which include the Electronic Payment Instruments Business (No. 00001), Cryptocurrency Exchange Business (No. 00011), and the Type 1 Financial Instruments Business (No. 3247).

SBI VC Trade stands at the forefront of Japan’s evolving digital finance sector. The firm plans to introduce new services integrating crypto and stablecoin transactions, ensuring seamless and efficient digital payments.

USDC’s growing market advantage

SBI VC Trade’s move comes as USDC is gaining global regulatory recognition.

The digital asset is currently the only major stablecoin compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulations, giving it a competitive advantage over Tether’s USDT in the region.

Over the past months, major exchanges such as Binance have removed non-compliant stablecoins from their European platforms, leading to a shift in market dominance.

As a result, USDC has seen increased adoption, with its circulating supply rising by 6% in the past month, reaching an all-time high of over $56 billion.

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Palantir Sinks on Planned Pentagon Budget Cuts. Is It Time to Sell the Stock? https://earlybirdsinvest.com/palantir-sinks-on-planned-pentagon-budget-cuts-is-it-time-to-sell-the-stock/ https://earlybirdsinvest.com/palantir-sinks-on-planned-pentagon-budget-cuts-is-it-time-to-sell-the-stock/#respond Mon, 24 Feb 2025 02:57:16 +0000 https://earlybirdsinvest.com/palantir-sinks-on-planned-pentagon-budget-cuts-is-it-time-to-sell-the-stock/

Palantir Technologies (PLTR -4.63%) shares have been red hot for the past couple of years, but the stock was tumbling after Defense Secretary Pete Hegseth ordered the Pentagon to slash its $850 billion budget by 8%, or about $50 billion.

Even more alarming is that the White House is looking to reduce the budget of the Department of Defense (DoD) by 8% a year over the next five years. The government was Palantir’s largest customer in 2024, representing nearly 42% of its total revenue, with most of that coming from the DoD and branches of the military.

Palantir CEO Alex Karp has also adopted a new Rule 10b5-1 plan, which is used by executives and other insiders to sell their company’s shares based on a set of parameters that they give to brokers. These plans are used to avoid any illegal insider selling and can be as simple as selling shares on set dates regardless of price, to using more complicated triggers. In the past, Karp’s plans have been more complex, and he began to greatly increase his selling last September.

Under his old plan, Karp sold 37.6 million shares, generating nearly $1.5 billion in proceeds. Under the new plan, he will be able to sell nearly 10 million shares through mid-September. He still had the ability to sell about 11 million shares under his old plan when he canceled it for the new plan, so it appears that he wanted to change the selling parameters.

Defense spending cuts

Under the directions of Hegseth, the Trump administration wants the DoD spending cuts directed toward “woke” programs such as fighting climate change, as well as excess bureaucracy, while directing funds toward projects such as securing the country’s borders, drones, and the Iron Dome for America missile defense system.

While there likely won’t be any cuts to Palantir’s programs, the question becomes how much room for growth will there be. An 8% annual DoD budget reduction combined with military money being directed toward border control and a big missile defense project appears to leave less room for other projects.

The opposing argument, though, is that Palantir’s artificial intelligence (AI) solutions can help create efficiency, and thus more money could be directed toward the company’s software platform.

In the past, Palantir has seen its government revenue growth be a bit unpredictable. In 2023, its government revenue growth hit a trough of 14% after seeing 19% growth in 2022 and 47% in 2021. It picked back up to 30% growth in 2024, including jumping 45% in the fourth quarter. The company was seeing strong momentum as the government was becoming more receptive to its new AI solutions.

At the same time, the stock became a Wall Street darling due to the strides it was making in the U.S. commercial sector, which saw revenue climb 54% in 2024, including a 64% surge in the fourth quarter. Palantir has been gaining a lot of momentum in the commercial sector from its AI platform, which can be used to address mission-critical tasks across various industries.

The running joke is that most Palantir investors don’t actually know what the company does. Its roots are as a data gathering and analytics vendor for the government, finding non-obvious patterns. These solutions have been used to fight terrorism and track coronavirus cases.

With AI, however, it has evolved to become an AI operating system, where it uses logic, functionality, and rigorous testing so that customers can use AI to accomplish tasks in real world environments. It has spurned building AI models, focusing instead on the application and workflow layers of AI.

Palantir has been able to attract a lot of commercial customers to its platform. However, many of these newer customers are still in the proof-of-concept stage with AI, with the company having a big opportunity to them into production.

Data analysts looking at data on a big screen.

Image source: Getty Images

Should investors buy the dip or sell?

The biggest negative against Palantir has largely been valuation. Even with the big drop in price, the stock still trades at a forward price-to-sales (P/S) multiple of 62 times 2025 analyst revenue estimates.

To put that in context, at its peak a few years ago, the software-as-a-service (SaaS) sector was trading at around 20 times sales with over 30% average revenue growth. Palantir grew total revenue by 29% last year and has forecast 31% growth at the high end of its guidance for 2025.

PLTR PS Ratio (Forward) Chart

PLTR PS Ratio (Forward) data by YCharts

The company has a chance to grow into its valuation if it can continue to move customers from proof-of-concept into production. However, if growth once again dries up at its largest customer, the government, then it will be really difficult to justify the stock’s current valuation.

At this time, exactly how DoD budget cuts will affect Palantir Technologies is an unknown, but I don’t want to be holding a stock trading at 62 times sales with it facing this type of potential risk. As such, I’d move to the sidelines.

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