Mediakomm

• The SEC issued a Wells Notice to Coinbase for allegedly selling unregistered securities on its exchange and through its staking service.
• Brett Quick from the Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms.
• Coinbase has been meeting with the SEC in an effort to create reasonable crypto rules, but there are still hurdles in the way of establishing regulatory clarity in the US.

SEC Issues Warning to Coinbase

The U.S. Securities and Exchange Commission’s (SEC) issued a Wells Notice to crypto exchange Coinbase, alleging that they have been selling unregistered securities on their exchange and through their staking service. This warning serves as a reminder of how difficult it can be for crypto companies to operate within existing framework in America, but also demonstrates an effort from both sides to create reasonable regulations for this new industry.

Crypto Advocate Sees ‘Silver Lining’

Brett Quick from the Crypto Council for Innovation said that this warning could lead to clearer rules for digital asset firms, although it could mean that some companies may move outside of America in order to find a more friendly regulatory environment. He believes that this kind of enforcement action will ultimately help establish case law which will provide better guidance around how crypto should be regulated going forward.

Coinbase Seeks Reasonable Crypto Rules

Coinbase has actively been trying to work with the SEC over the past nine months, holding more than 30 meetings with them in order to come up with reasonable rules surrounding cryptocurrency products and services. It isn’t just about disclosure requirements or hefty fees associated registering these products, it is about finding ways make existing securities laws compatible with technological innovations like blockchain and cryptocurrency technology.

Regulatory Clarity is Vital

It is essential that regulatory clarity is established if America wants maintain its innovative edge when it comes to cryptocurrency technology – especially when other countries are embracing innovation and providing clear guidelines on how developers should adhere to regulations without sacrificing progress.

Conclusion

While there are currently many barriers standing between cryptocurrency companies and operating within US borders, both parties (the SEC & Coinbase) are making strides towards creating a set of fair regulations which will benefit everyone involved – especially those looking innovate using this technology!

• The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, active NFT traders dropped to its lowest point since November 2021.
• According to DappRadar, single NFT trades totaled 33,112 on that day and NFT trading volume has fallen 51% since the beginning of March.
• Despite this collapse, projects from NFT issuer Yuga Labs, including Bored Ape Yacht Club and CryptoPunks, saw their floor prices dip slightly on Saturday but quickly recovered.

Collapse of Silicon Valley Bank Tanked NFT Trading Volumes

The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, there were only 12,000 active NFT traders according to DappRadar – a number not seen since November 2021. Single NFT trades totaled 33,112 on that day; the lowest daily tally so far this year. Additionally, since the beginning of March there has been a 51% drop in overall trading volume and sales have decreased 16%.

Yuga Labs Projects Not Affected as Much

Not all collections of non-fungible tokens were affected in the same way though; projects from NFT issuer Yuga Labs including Bored Ape Yacht Club and CryptoPunks saw their floor prices dip slightly on Saturday but quickly recovered. One Twitter user compared CryptoPunks to USDC claiming it was more stable than the stablecoin which lost its peg to the U.S. dollar after Silicon Valley Bank’s collapse.

Animoca Brands Reacts and Discusses Web3 Outlook

Animoca Brands co-founder and Executive Chairman Yat Siu reacts to this report and discusses his outlook for the NFT market and the broader state of Web3 plus insights into Animoca backing Nuqtah Saudi Arabia’s first NFT marketplace platform.

First Public Apperance Since Assumption as CEO

Daniel Alegre is also featured in this article as he makes his first public appearance since assuming his position as CEO at Yuga Labs. Here he provides further insight into how his company has been affected by these changes in the market along with what actions they are taking next to secure their place within it going forward.

Conclusion

Although there have been drastic decreases in both active traders along with trading volumes within the world of non-fungible tokens due to Silicon Valley Bank’s collapse last week; there is still a wide range of opinions about what will happen next for both individual companies such as Yuga Labs along with Web3 overall from industry experts like Animoca Brands co-founder Yat Siu .

• Starbucks Odyssey, an invitation-only rewards program, released its first limited edition NFTs called Stamps.
• Members were able to buy up to two stamps each at a price of $100.
• Despite technical issues, the collection sold out in 18 minutes and secondary sales have already passed $550.

Starbucks Odyssey Program Releases First NFT Drop

Starbucks Odyssey, the company’s Web3 loyalty program, has released its first limited edition non-fungible tokens (NFT), referred to as Stamps. The 2,000-item “Siren Collection” features a version of the brand’s iconic Siren and was available for members to purchase up to two stamps each starting at 12 p.m. ET for a price of $100 via credit card or MetaMask wallet connectivity.

Technical Problems During Launch

Despite the launch of the collection, members of Starbucks Odyssey Discord group complained of problems accessing the site and error messages due to what seemed like an overwhelmed website from traffic.

Collection Sells Out Quickly

Despite these technical difficulties, the collection still managed to sell out within 18 minutes with secondary sales quickly soaring past $550 as of this update.

What Is An NFT?

Non-Fungible Tokens (NFTs) are unique digital assets that can be used for various applications across multiple industries such as gaming and art platforms among others. They differ from cryptocurrencies in that they are not interchangeable but rather represent something unique—a piece of art or a collectible item—and can be bought, sold or traded on blockchain marketplaces such as Nifty Gateway.

Conclusion

The launch of Starbucks Odyssey’s Siren Collection showcases how quickly these digital collectibles can gain value in just a short period of time while also highlighting some areas where improvements may need to be made regarding technical issues during launches like this one.

• Ethereum developers have started to refer to the upcoming hard fork as “Shapella”, as it is a combination of the Shanghai upgrade on the execution side and Capella on the consensus side.
• To understand what Shapella is, one needs to understand Ethereum prior to when it went through its last upgrade, called the Merge.
• The Merge was done by merging together two layers of the blockchain: an execution layer (proof-of-work) and a consensus layer (proof-of-stake).

What is Shapella?

Ethereum developers have started to refer to the blockchain’s upcoming hard fork – in this case a key upgrade – as “Shapella”. Shapella is technically not wrong to call it the Shanghai upgrade, but this is confusing since crypto traders, analysts and industry executives have mostly referred to the hard fork – expected by next month – as “Shanghai.” This is because Shapella combines both Shanghai on the execution side and Capella on the consensus side.

Understanding Ethereum Prior to Merge

To understand what Shapella is, one needs to understand Ethereum prior to when it went through its last upgrade, called the Merge. Ethereum’s old proof-of-work blockchain was also known as the execution (application) layer. When Ethereum started its proof-of-stake (PoS) chain, also known as the consensus layer, developers were originally going to transition over just PoS chain. But they decided that would be too complicated so they merged both chains together instead – hence ‘Merge’.

Merging Process Explained

The two layers had different names: The execution layer underwent what was called ‘the Shanghai Upgrade’ while on consensus layer it was known as ‘Capella’. As such developers cleverly merged these two names together into ‘Shapella’. By merging these two layers together they could transit from proof-of work system towards proof of stake system more efficiently and smoothly without making any drastic changes in system architecture or network topology.

Benefits Of Merging Layers

The benefits of merging these two layers are plenty; for example miners are now able to use their computing power more efficiently by using less energy than before due which will ultimately reduce electricity costs for miners significantly. Additionally it helps increase scalability thanks in part due improved data structure which allows more transactions per second than before merge process took place; meaning faster transaction speeds than ever before! Lastly Etherum has become even more decentralized with new staking capabilities enabled after merge process completed successfully.

Conclusion

In conclusion, Shapella combines both Shanghai upgrade on execution side with Capella on consensus side resulting in smoother transition from proof-of work system towards proof of stake system with many added benefits including lower electricity costs for miners, improved scalability and increased decentralization among others!

• Platypus Finance, a DeFi protocol for stablecoins, will repay at least 63% of user funds after a $9 million hack.
• The exploit used a bug in the platform’s solvency check mechanism to steal digital assets, leading to its native stablecoin USP losing its dollar peg.
• The protocol worked with crypto exchange Binance and blockchain security firm BlockSec to identify the exploiter and recover stolen funds.

Platypus Finance Hacked for $9M

Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins, was hacked last week for approximately $9 million worth of digital assets. The hacker exploited a bug in the platform’s solvency check mechanism that led to its native stablecoin USP losing its dollar peg.

Funds Recovered and Repaid

In response, the protocol worked with crypto exchange Binance to confirm the identity of the exploiter responsible for the attack. It also enlisted blockchain security firm BlockSec to help recover some of the stolen funds. As a result, Platypus announced it would repay users at least 63% of their original funds.

Attack Details

The attack consisted of three consecutive stages which saw digital assets such as Circle’s USDC, Tether’s USDT, Maker’s DAI and Paxos’ binance USD drained from Platypus’ main pool. A part of these assets were sent mistakenly to lending protocol Aave where Platypus has submitted a proposal requesting their release.

Law Enforcement Involved

Apart from repaying users’ funds and working with Binance and BlockSec on recovering lost assets, Platypus also contacted law enforcement authorities and filed a complaint in France against the hacker behind this attack.

Crypto Industry Problematic Security Situation

This incident is yet another example highlighting crypto’s ongoing problem with hackers targeting protocols’ weaknesses or exploiting bugs within their codes in order to siphon off large amounts of digital assets stored within them.

•TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour due to speculation over a Binance stablecoin transaction.
•The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is.
•TrustToken sold TUSD in 2020 to a firm called Techteryx and separated from the TrueFi protocol and was renamed Archblock last year.

TrueFi’s TRU Token Rallies Over 200%

The TRU token of decentralized lending protocol TrueFi rallied over 200% on Thursday in an hour, data by CoinMarketCap shows, after speculation about a Binance stablecoin transaction sparked among crypto traders.

Binance Mints $50 Million of TrueUSD

Prior to the rally, Binance had minted $50 million of its own version of TrueUSD (TUSD) stablecoin, according to blockchain data. This caused some confusion among traders as they thought it might be related to the TRU token.

TrueFI Issuers Separated Long Ago

However, the speculation about the TRU token was misplaced because the issuers of the TrueUSD and TRU tokens were separated a while ago. TrustToken sold TUSD in 2020 to a firm called Techteryx and was later renamed Archblock last year as TrueFi embarked on its journey towards decentralization.

TRU Surge Triggered By Misinformation

The misinformation led to many traders investing in TRU which triggered its surge as high as 14.6 cents from 4.4 cents on Binance before later paring some of the gains. The token was trading at around 11 cents at press time.

BUSD Drama Sets Stage for Stablecoin Market Reshuffling

The drama surrounding Paxos’ decision to halt minting BUSD set stage for reshuffling within the stablecoin market which could have been misinterpreted by traders who then made investments based on incorrect information leading them towards buying TRU instead of TUSD tokens

• The SEC is meeting in a closed-door session on Thursday to settle charges with crypto exchange Kraken over their offering of unregistered securities.
• Under the settlement, Kraken will “immediately” end its crypto staking-as-a-service platform for U.S. customers and pay $30 million to the SEC.
• This includes shutting down their crypto-lending product that offered up to 24% yield as well as their 20% APY staking rewards service.

Kraken Agrees to Shutter US Crypto-Staking Operations

The Securities and Exchange Commission (SEC) is meeting in a closed-door session on Thursday to settle charges with crypto exchange Kraken over their offering of unregistered securities. Under the settlement, Kraken will “immediately” end its crypto staking-as-a-service platform for U.S. customers and pay $30 million to the SEC. This includes shutting down their crypto-lending product that offered up to 24% yield as well as their 20% APY staking rewards service.

Details of Settlement

Kraken offers a number of services under its staking umbrella, including a crypto-lending product offering up to 24% yield which is also expected to shut down under the settlement according Bloomberg news report which stated that Kraken was close to a settlement with the SEC over offering unregistered securities on Wednesday.

SEC Confirmation

The SEC confirmed that Kraken would shut down its staking services for U.S customers after the publication of this article and an announcement may come later in the day from them regarding this matter according an industry source briefed on it who spoke with CoinDesk . A spokesperson from both Kraken and SEC declined comment before publishing this article but did confirm afterwords that this agreement has been made between them .

Implications for Crypto Regulation

CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discussed about wider implications for other cryptocurrency exchanges concerning regulation after this incident took place between the two entities . It will be interesting how other cryptocurrency exchanges respond by taking measures into consideration themselves or if they are forced by law like what happened here with Kraken .

Conclusion

In conclusion, it appears that Kraken has agreed upon settling charges brought against them by paying out $30 million dollars while also immediately ceasing all services relating to cryptocurrency staking within U.S borders in order to avoid any further consequences which could have otherwise been more severe if they weren’t willing to cooperate fully with authorities concerned .

• Bittrex, a Seattle-based cryptocurrency exchange, is laying off more than 80 people.
• The layoffs are attributed to the “new economic environment” in the crypto industry.
• This comes after other crypto exchanges announced similar layoffs due to market downturns.

Bittrex Laying Off More Than 80 People

Seattle-based cryptocurrency exchange Bittrex has confirmed it is cutting its staff by more than 80 people, citing new market conditions as the primary cause of the reductions. In a leaked email on Twitter, CEO Richie Lai told employees that they had been working to reduce costs and increase efficiencies but were unable to do so due to the current economic environment in the crypto industry.

Reasons for Layoffs

The “new economic environment” cited by CEO Richie Lai includes multiple failures in the crypto ecosystem which caused a market downturn by the end of 2020. This has led to Bittrex having to reset their strategy and balance investments accordingly. The layoffs have affected nearly all departments within Bittrex and have come at a time when other major exchanges such as Coinbase and Gemini have also announced cuts due to market declines.

Consequences of Job Losses

CoinDesk estimates that since April 2020, over 29,000 jobs across the crypto industry have been lost due to press releases and media reports related to these layoffs. The effects of job losses can be felt both throughout individual companies and across entire industries as workers struggle with reduced wages or no income at all during this unprecedented time.

Crypto Market Outlook

As cryptocurrency prices remain volatile and many exchanges continue announcing layoff plans, it remains unclear what kind of impact this will have on the global crypto markets going forward. While some experts believe that cryptocurrencies could become more mainstream if governments start issuing them as digital currencies, others are skeptical about how well these digital assets will fare in uncertain economic times like these.

Conclusion

It is clear that crypto exchanges like Bittrex have been hit hard by recent events in the markets, resulting in significant job losses for many individuals across various departments within these companies. However, despite current hardships faced by these firms and their employees, there is still hope for a brighter future for cryptocurrencies if governments continue adopting them into their national economies moving forward.

• The newly formed U.S. House of Representatives Subcommittee on Digital Assets, Financial Technology and Inclusion will make stablecoin regulation one of its top priorities, according to Rep. French Hill (R-Ark).
• The committee will also pursue a privacy statute federally and review how the SEC and CFTC oversee digital asset regulation.
• Rep. Hill said the committee’s draft on stablecoins could be used as a model for how the committee will approach digital asset regulation moving forward.

The United States House of Representatives is taking a step forward in the regulation of digital assets and financial technology with the formation of the Subcommittee on Digital Assets, Financial Technology, and Inclusion. Chaired by Rep. French Hill (R-Ark), the subcommittee has already made clear that stablecoin regulation will be one of its top priorities.

In an interview with CoinDesk TV’s “First Mover”, Rep. Hill highlighted the importance of the subcommittee and its work in the coming months. Stablecoin regulation is first on the list, as the subcommittee is currently drafting a draft that could be used as a model for how the committee will approach digital asset regulation moving forward.

The subcommittee will also be seeking to review how the SEC and CFTC currently oversee digital asset regulation and could be looking to create a federal privacy statute. This would provide more clarity and guidance for companies in the digital asset space.

Rep. Hill also noted that the subcommittee’s work would be of great importance to the crypto industry and the general public. He said that the committee’s work will provide a much needed clarity and stability to the digital asset market.

The subcommittee’s work could also have a significant impact on how the U.S. regulates digital assets in the future. By providing clear guidance on how the SEC and CFTC oversee digital assets, the subcommittee could help to create a more reliable and consistent regulatory framework for the industry.

The subcommittee’s work is likely to be welcomed by the crypto industry and the public at large. With the work of the subcommittee, the U.S. could be on its way to providing a more reliable and consistent regulatory environment in the digital asset space. This could lead to more stability in the market and greater protection for investors and users of digital assets.

• According to the Wall Street Journal, the new head of FTX, John J. Ray III, is exploring the possibility of reviving the bankrupt crypto exchange.
• Ray previously handled Enron’s restructuring and said that customers have lauded FTX’s technology and said it could be worth reviving the exchange.
• Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

John J. Ray III, the new head of crypto exchange FTX, is looking into the possibility of reviving the company which recently filed for bankruptcy. In an interview with the Wall Street Journal, Ray said that despite the accusations of criminal misconduct against former CEO Sam Bankman-Fried and other executives, customers have praised FTX’s technology and said it could be worth reviving the exchange.

Ray is no stranger to reviving defunct companies, as he previously handled Enron’s restructuring. He told the Wall Street Journal that “everything is on the table” when it comes to FTX and that he is considering all options, including restarting the exchange.

FTX has been a major player in the crypto market since its launch in 2019. The company quickly grew and gained a reputation for its innovative products and strong customer service. However, in December 2020, FTX filed for bankruptcy following allegations of criminal misconduct by Bankman-Fried and other executives.

The bankruptcy filing sent shockwaves through the crypto community, as many investors have lost money due to the closure of the company. However, Ray is optimistic that FTX could be revived and said that the technology is still sound. He is currently exploring a variety of options to get the exchange back on its feet and is looking for potential partners to help him do so.

Ray is also planning to attend the most important conversation in crypto and Web3, taking place in Austin, Texas, in April 2021. He hopes to use this opportunity to discuss the potential of reviving FTX and to meet with potential partners.

No matter what the outcome of Ray’s efforts, one thing is certain: the crypto community will be keeping a close eye on FTX’s journey back to life.