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Overview of Traditional Finance Failing

• Legacy media blamed crypto for the collapse of FTX, Voyager, Celsius, and BlockFi last year.
• Two TradFi banks are now insolvent – Silvergate and Silicon Valley Bank – impacting the depeg of Circle’s USDC.
• The collapse of FTX showed that DeFi worked where TradFi failed.

Crypto Not at Fault

Despite accusations from legacy media outlets, none of the issues these failed companies faced were caused by blockchain. Instead, criminal activity, greed, poor risk management, novice business processes, hubris, and malicious acts were to blame – all occurring off-chain. The ‚Bitcoin is dead‘ mantra was heard 27 times in 2022 but this was down roughly 50% from the previous year.

DeFi Survives Contagion

During the collapse of FTX it became clear that DeFi loans connected to the contagion operated as intended and liquidations occurred without impacting the underlying DeFi protocols themselves. This has been seen again with Tether surviving bank runs and redeeming tens of billions over the last 12 months while operating without fault; blockchain record of USDT’s supply has proven itself time and time again. However Circle’s USDC may suffer a different fate due to its reserves which were held off-chain.

Blockchain Can Fix Issues

The issues negatively affecting crypto are not due to on-chain failures but rather issues within legacy financial markets which are only impacting crypto due to governmental resistance to adopting distributed ledger technology such as blockchain. Blockchain can fix many problems associated with traditional finance and will likely be adopted more widely in future years.

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It is clear that blockchain technology can provide solutions for many issues encountered in traditional finance markets. Whilst crypto has suffered as a result of legacy finance market collapses it is important to remember that this is not a problem caused by blockchain but rather by human error or government resistance. As adoption continues there will likely be more instances where blockchain outperforms traditional finance systems.

• Coinbase announced the acquisition of One River Digital Asset Management (ORDAM) on Mar. 3.
• Under Coinbase, ORDAM will transform into Coinbase Asset Management (CBAM), which will operate as an independent subsidiary wholly owned by Coinbase.
• CBAM will focus on institutional consumers and provide them with „industry-leading products and services.“

Coinbase Acquires One River Digital Asset Management

Coinbase announced the acquisition of One River Digital Asset Management (ORDAM) on Mar. 3 in an effort to enhance institutions’ access to crypto assets. Under Coinbase, ORDAM will transform into Coinbase Asset Management (CBAM), which will operate as an independent subsidiary wholly owned by Coinbase.

CBAM’s Focus

CBAM will focus on institutional consumers and provide them with “industry-leading products and services” in order to build innovative digital asset management infrastructure. The two companies share a joint passion for investor safety, making this partnership a perfect fit for both parties involved.

Eric Peters’s Role

The current CEO of ORDAM, Eric Peters, will remain in his duty and continue chairing CBAM after the acquisition is complete. Before the acquisition, ORDAM was a subsidiary of One River Asset Management, an investment adviser registered with the U.S Securities and Exchange Commission (SEC). As a digital asset manager, ORDAM focused on exposing institutional clients to digital assets by offering investment products.

ORMDM’s Use Of Coinbase Prime

According to the announcement, ORDAM had been using Coinbase Prime to offer investment products to its institutional customers before the acquisition was made official by both parties involved.

Conclusion

The joint venture between these two companies is beneficial for investors who are looking for reliable sources when it comes to cryptocurrency investments such as Bitcoin and other digital assets that have yet to be discovered or explored further within the market space. With this partnership in place, more people may feel encouraged or comfortable investing in cryptocurrencies knowing that they have trusted partners like Coinbase protecting their investments through sound risk management practices

• Circle CEO Jeremy Allaire believes the U.S. Securities and Exchange Commission should not be assigned to regulate stablecoins.
• Allaire suggests that stablecoins can be treated as payment systems, which would exempt them from being classified as securities.
• He also supports SEC regulations on qualified custodians, which would provide protection against bankruptcy and control assets held by exchanges.

Stablecoin Regulation Shouldn’t Be Assigned to U.S. SEC

Circle CEO Jeremy Allaire has expressed his belief that the U.S. Securities and Exchange Commission (SEC) should not be tasked with regulating stablecoins in an interview with Bloomberg on Feb 23rd.
Allaire insists that most regulators consider stablecoins a payment system, meaning they won’t be classified as securities and thus don’t fall under the SEC’s jurisdiction.
He further recommends separate SEC regulations that impose stricter rules around cryptocurrency custody, including rules for qualified custodians that will protect users from bankruptcy and control assets held by exchanges better than currently possible.

Binance USD & TerraUSD

The SEC recently took action against two prominent stablecoins – Binance USD (BUSD) and TerraUSD – to determine their legal status in the US market due to their respective price pegs of $1 USD each being maintained differently between them; Binance USD is backed by traditional assets while TerraUSD is algorithmically determined using crypto assets, leading it to lose most of its value in May 2022 after issuance earlier in 2021.. While Paxos had stopped issuing Binance USD following requests from New York regulators, rumors emerged shortly afterwards that Circle had received a similar notice ⁠— rumors which were quickly debunked by Circle themselves later on.

Gary Gensler’s Opinion

SEC Chair Gary Gensler has repeatedly suggested that stablecoins could come under the regulator’s jurisdiction, comparing them to certain securities last September when he spoke on the topic during a speech at Georgetown Law School. He further likened them to poker chips when speaking at a virtual event hosted by CoinDesk last October where he discussed how regulation could affect cryptocurrencies as a whole more broadly .

Lessons Learned

Allaire drew attention to lessons learned from random exchanges holding user assets, suggesting appropriate controls are needed through qualified custodian rules for asset security going forward if digital currencies are going have any chance at mainstream adoption in finance markets around the world .

Conclusion

Overall it seems clear based off both Allaire’s comments and Gensler’s opinion assessments over recent months that both parties agree some form of regulation is needed for stablecoins if they are ever going to become widely accepted within financial markets domestically or abroad

• Someone uploaded a one-second audio file of a wet fart to the Bitcoin Ordinal network and it sold for 12.3 Bitcoin, or $280,000.
• Ordinals are data stored on the Bitcoin blockchain network, similar to NFTs but without a centralized marketplace.
• The wild world of Ordinals continues to become increasingly weird and 4chan-like with each passing day.

What Are Bitcoin Ordinals?

Launched in January by software engineer Casey Rodarmor, Ordinals are essentially a protocol that allows for data to be stored on the Bitcoin blockchain network. Think NFTs but for Bitcoin – they’re so new you can’t even buy them via an online marketplace like OpenSea; you need special wallets to store and trade them, although this hasn’t stopped people from uploading strange and uncanny files onto the network. So far, over 100,000 inscriptions have been made via the Ordinal network – everything from encrypted files to digital art.

The Fart That Sold For $280K

On Feb 2nd inscription 2042 was uploaded onto the Bitcoin blockchain: a 1-second audio clip capturing the sound of someone passing gas. According to one Reddit user posting in r/CryptoCurrency, this sold for 12.3 Bitcoin – equivalent to $280k! It’s impossible to verify whether this transaction actually took place though as there is no centralized (or decentralized) marketplace for these kinds of transactions – most take place over-the-counter (OTC), usually among Bitcoin node operators themselves.

The Wild World Of Ordinals Continues To Get Weirder

The world of ordinals continues to become increasingly weird by the day; ever more reminiscent of 4Chan with each passing hour! From encrypted files being uploaded onto the blockchain network through digital artworks and now even farts… It seems that cryptocurrency is beginning to branch out into more bizarre forms than ever before!

Dorian Batycka: Contributor at CryptoSlate

Dorian Batycka is a journalist interested in art and technology who has previously contributed articles about cryptocurrencies such as CoinDesk, Decrypt, Artforum etc.. You can find him on Twitter and Instagram @temp_projects where he often posts his own memes about current financial news events in relation with art news scandals etc..

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• Ric Burton, co-founder of Balance.io, accused Uniswap founder Hayden Adams of not repaying him for helping get Uniswap off the ground.
• Adams denied the allegations and said Burton was offered an investor ownership stake and a cash repayment, both of which were turned down by Burton.
• Burton is now suing Adams to “right the wrong” he felt.

Allegations Against Uniswap Founder

Ric Burton, co-founder of Balance.io, recently posted a tweet thread accusing Hayden Adams, founder of Uniswap, of not repaying him for his help in getting Uniswap off the ground. According to Burton’s account, he had given unrestricted studio access and mentorship to Adams while also providing money—all with a verbal agreement that Adams would repay him from Uniswap’s investment funding. However, after going through a rough patch following the death of his grandmother, when their relationship became distant and he was asked to leave Balance, Burton claimed that he did not receive any repayment from Adams despite multiple requests.

Adams Denies Allegations

In response to these accusations, Adams released a statement asserting that there were untruths in Burton’s account ranging from „very misleading to outright lies.“ He further clarified that what was being referred to as repayment took the form of a post-money Simple Agreement for Future Equity (SAFE), where Burton could choose whatever amount he wanted for himself; however this offer was declined by BURTON due to low funds at Balance at the time. Additionally, another offer was later made but refused by BURTON as well.

Burton Suing To Right The Wrong

Unhappy with having been double-crossed and frozen out by Adams after all his help getting Uniswap off the ground in its infancy days on Ethereum (ETH), Ric Burton has decided to take legal action against him in order to right this wrong feeling he experienced over time.

Unanswered Questions Remain

There are still unanswered questions regarding this case such as why did Adams remain silent on this issue up until now or why didn’t he try harder earlier on when faced with requests for repayment? These are issues we will have more clarity about once more information comes forward during legal proceedings between both parties involved in this conflict over an alleged debt between them from years ago which seems now set be resolved through courts instead of friendly talks outside it like originally expected.

Conclusion

The situation between Ric Burton and Hayden Adam has taken an unexpected turn as it moved from private conversations into public courtrooms without either party being able to reach an agreement beforehand about how things should end up being resolved peacefully outside legal proceedings for something that happened so many years ago already before all these accusations started coming forth only recently via social media platforms such as Twitter among others

• Sam Bankman-Fried, former CEO of FTX, has denied allegations that he attempted to influence a potential witness.
• U.S. Attorney for the Southern District of New York Damian Williams has accused Bankman-Fried of contacting the FTX US General Counsel, Ryne Miller, via encrypted messaging app Signal.
• Williams stated that Miller may be a witness at trial and that Bankman-Fried attempted to influence Miller’s testimony.

Sam Bankman-Fried, the former CEO of the cryptocurrency trading platform FTX, has come under fire recently after U.S. Attorney for the Southern District of New York Damian Williams accused him of trying to influence a potential witness. In a Jan. 27 court filing, Williams suggested that Bankman-Fried had contacted the FTX US General Counsel, Ryne Miller, via encrypted messaging app Signal.

Williams noted that Miller has information that could incriminate Bankman-Fried, such as his presence at FTX around the time of the company’s collapse and his participation in online company groups. In the Jan. 15 message to Miller, Bankman-Fried wrote: “I would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.” This statement has been interpreted by Williams as an attempt to influence Miller’s testimony.

In response to the allegations, Bankman-Fried has denied that he tried to sway the witness, saying that he was merely trying to reach out and form a constructive relationship. He also noted that he was not aware at the time that Miller may have been a potential witness.

Williams has requested that the court impose restrictions on Bankman-Fried’s communications, including the restriction of any contact with Miller. He has also requested that Bankman-Fried be prevented from discussing the case with anyone other than his attorney. The court has yet to decide on these requests.

Meanwhile, Bankman-Fried awaits the court’s decision with anticipation as the allegations have caused significant damage to his reputation. If the court decides to implement the restrictions requested by Williams, it could have serious consequences for Bankman-Fried and his future endeavors.

• Bitcoin and gold have the highest correlation in over a year, with a 93% correlation.
• Gold is approaching its all time high, and the dust from the FTX collapse has settled.
• Bitcoin is seen as digital gold due to its fundamentals of supply and demand.

Amidst the ever-changing Bitcoin ecosystem, one narrative that remains constant is the notion of Bitcoin as digital gold due to its fundamentals of supply and demand. Over the past year, this correlation has been demonstrated in the market, with Bitcoin and gold having a significant correlation throughout 2022.

Recently, this correlation has reached a one-year high of 93%, while gold is on the brink of breaking out to an all-time high. This surge may be due to the dust settling from the FTX collapse, which had nothing to do with Bitcoin other than FTX holding Bitcoin on its balance sheet. Analysts believe this correlation could represent a shift in the global economy, where Bitcoin is seen as a safe-haven asset and a viable alternative to gold.

The potential of Bitcoin as an alternative to gold is further evidenced by the market’s response to the FTX collapse. When the news broke, Bitcoin’s correlation with gold dropped significantly, highlighting its resilience and potential as a safe-haven asset. This resilience is further evidenced by the fact that Bitcoin has not been affected by the recent US-China tensions and the US election, both of which have had an impact on gold prices.

While it is possible that this correlation could be a short-term blip, it is worth noting that Bitcoin is increasingly being seen as a viable alternative to gold. With gold reaching its all-time high, Bitcoin could prove to be a more attractive option for investors who are looking for a safe-haven asset with more upside potential. As such, it will be interesting to see if this correlation continues over the coming months and years.

Bullet Points:
– Digital Currency Group (DCG) is struggling to raise funds in order to cover Genesis‘ $3 billion debt burden.
– DCG is attempting to liquidate its venture capital holdings in order to raise funds, however external funding attempts have failed so far.
– DCG has invested in a range of companies such as Coinbase, Kraken, Chainalysis, Decentraland, Circle, and Dapper Labs.

DCG, the parent company of crypto lender Genesis, is in a scramble to raise funds in order to cover the lender’s $3 billion debt burden. According to a Financial Times report on Jan. 12, citing sources familiar with the matter, Genesis owes $900 million to users of Gemini’s Earn program, over $303 million to Dutch exchange Bitvavo, as well as money to users of crypto savings firm Donut.

In an attempt to cover the debt, DCG is attempting to liquidate its venture capital holdings, which are estimated to be worth $500 million. Although this is far less than the amount owed, it is the only option the company has right now. Talks with investment bank Moelis to explore other options have been unsuccessful, and external funding attempts have also failed.

DCG has invested in a range of companies and projects over the years. Some of the most notable investments include exchanges Coinbase and Kraken, crypto investigation platform Chainalysis, Decentraland, USD Coin (USDC) issuer Circle, and Dapper Labs, the firm behind NBA Top Shots and CryptoKitties non-fungible token (NFT) collections. The company also invested $250,000 in the now-defunct crypto exchange FTX in July 2021.

It remains to be seen whether DCG will be able to raise the funds necessary to cover Genesis‘ debt burden. As of now, the company will have to rely on its venture capital holdings, which seem to be a far cry from the amount owed. If DCG is unable to raise the funds necessary, it is likely that Genesis will have to default on its debt obligations, which could have serious consequences for the crypto industry as a whole.

• Fantom Foundation has received approval to reduce the burn rate from 20% to 5%.
• Eligible developers will receive about 15% of the transaction fees generated from their dApps.
• To be eligible for the affiliate rewards, the dApp must have existed on the Fantom Opera network for up to 3 months and completed over 1 million transactions.

The Fantom Foundation recently achieved an important milestone in its journey to offer developers a better experience on its blockchain network. The foundation has received approval to reduce the burn rate from 20% to 5%, so as to allocate the remaining as reward to high-performing dApps. This means that eligible developers on the Fantom network will receive up to 15% of the transaction fees generated from their dApps.

The gas monetization model is in line with the ad monetization model common to Web2 giants such as YouTube, which allocates up to 55% of ad revenue to creators. The Fantom Foundation announced on Dec. 4, that it has received approval to implement the gas monetization model. To be eligible for the affiliate rewards, the dApp must have existed on the Fantom Opera network for up to 3 months and completed over 1 million transactions.

The goal of the incentivization model is to further reward developers for their contributions to the growth of the Fantom network. It also helps to encourage more developers to build on the network, as they are assured of a stable income stream. The Fantom Foundation will continually adjust the eligibility criteria as the need arises, so as to curb spammy and clunky dApps looking to exploit the gas monetization model.

The approval of the gas monetization model is a major step in the right direction for developers on the Fantom network. It will open up new opportunities for developers to participate in the growth of the network and make a living from the applications they build. In addition, it will also give developers more financial security and stability, as they are assured of a revenue stream from the network.

Overall, the new gas monetization model is a win-win for both the Fantom Foundation and for developers on the network. The Fantom Foundation is committed to providing developers with the necessary support and resources to build successful applications on the network, and this approval is a testament to that commitment.

• G7 economies and over 20 additional countries are in development stages for CBDCs, according to the Atlantic Council.
• China’s CBDC pilot is set to expand to most of the country in 2023 — currently reaching 260 million people, according to the AC.
• Over 20 countries are set to take significant steps towards piloting a CBDC in 2023, including Australia, Thailand, Brazil, India, South Korea, and Russia.

The global move towards central bank digital currencies (CBDCs) has continued to gain momentum in the past few years. According to the Atlantic Council (AC), all G7 economies had moved into the development stage of a CBDC by December 2022. In addition, over 20 countries are set to take significant steps towards piloting a CBDC in 2023, including Australia, Thailand, Brazil, India, South Korea, and Russia.

The AC’s December 2022 report also found that 11 countries had fully launched a digital currency, while a further 17 were in the pilot phase, with 72 in the research and development phase. China’s CBDC pilot is set to expand to most of the country in 2023 — currently reaching 260 million people, according to the AC.

The adoption of CBDCs is seen by many as a way to improve cross-border payments, mitigate financial crime, increase financial inclusion and address risks posed by other forms of digital currency. The Bank of England, Federal Reserve Bank of New York, Monetary Authority of Singapore and central banks in Spain and Switzerland are some of the institutions that have already launched their own CBDCs.

In December 2022, the governor of India’s central bank also expressed a strong interest in pursuing a CBDC. This sentiment was echoed in the AC’s report, which noted that CBDCs „will increasingly become central to the future of global payments and the global financial system.“

The AC’s report highlighted the need for CBDCs to be designed carefully, with attention paid to security, privacy and scalability. It also suggested that CBDCs should be tailored to the needs of individual countries, and that their development should be closely monitored by governments.

The report concluded that CBDCs have the potential to revolutionize the way money is used, both domestically and internationally. As more countries move into the development phase of CBDCs, the global financial system is likely to undergo a significant transformation.