Base Rekindles Fears of Ethereum’s Network Neutrality Loss

| 25. Februar 2023

– Coinbase recently announced the launch of its new product Base, an Ethereum layer 2 that enables anyone to build dApps cost-effectively.
– Chris Blec argued that Base is an integral part of WEF plans for CBDCs and a cashless society.
– There were no explicit narratives about Base being permissionless to use, with Blec warning it will be a KYC-chain, meaning only those who verify their identity will be granted access.

Coinbase Launches New Product “Base”

Coinbase recently announced the launch of its new product Base, an Ethereum layer 2 enabling anyone, anywhere to build dApps cost-effectively. The goal with Base is to make onchain the next online and onboard 1B+ users into the cryptoeconomy.

Suspicions Over Ethereum’s Network Neutrality

The news rekindled the discussion about Ethereum being co-opted by entities who seek to censor and centralize the chain. Following notice of U.S. Treasury sanctioning Tornado Cash mixer in August 2022, Ethereum was under fire over its lack of network neutrality in “bowing” to pressure and complying with authorities. The agency stated that over $7 billion of illicit funds had been laundered through the protocol including funds stolen by North Korean hacking group Lazarus.

What Makes Coinbase Base Different?

Unlike other ETH layer 2s Coinbase already has a captive userbase which developers have access to from the off. Additionally, Coinbase stated that Base would not incorporate a token; instead Ethereum will be used as native gas token for powering transactions on platform’s decentralized applications (dApps).

Base As A Cornerstone Of WEF Plans?

Chris Blec warned that despite being permissionless to build on, there are still no explicit narratives about it being permissionless to use; making it more likely for it become KYC-chain where only those who verify their identity are granted access – thus becoming integral part of WEF plans for CBDCs and cashless society initiatives..

Conclusion

Coinbase’s newly announced product “Base” is a crucial aspect of World Economic Forum (WEF) plans for Central Bank Digital Currency (CBDC) tech according to Chris Blec; however there are still suspicions around network neutrality due its potential KYC requirements and ability to control usage on chain

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FTX’s Nishad Singh Set to Plead Guilty, Face Charges

| 19. Februar 2023

• FTX’s former employee Nishad Singh is reportedly preparing to reach a plea deal with U.S. prosecutors.
• He previously served as the exchange’s director of engineering and is now said to face charges.
• The CFTC and SEC are also reportedly set to file charges against him in relation to activities such as campaign financing and software development for transferring funds between FTX and Alameda Research.

FTX Employee’s Legal Situation

FTX’s former employee, Nishad Singh, is reportedly approaching a plea deal with U.S. prosecutors according to Bloomberg News on February 17th. Singh served as the exchange’s director of engineering and is now said to face charges from both the U.S Attorney’s Office for the Southern District of New York, as well as from the CFTC and SEC who plan to file additional charges related to activities such as campaign financing and software development for transferring funds between FTX and Alameda Research.

Cooperation Deal Discussed

Bloomberg news reported that Singh had discussed a cooperation deal back in January 10th which was likely leading towards a plea deal at that time, though he was not accused of any wrongdoing yet. According to reports starting Jan 5th, authorities were already investigating Singh for possible illegal activities which could potentially provide assistance in the criminal case against Sam Bankman-Fried, co-founder and former CEO of FTX.

Plea Deals Reached Before

If Singh reaches a plea deal it will be his third fellow FTX associate after Caroline Ellison (former Alameda Research CEO) and Gary Wang (co-founder) who have both pled guilty in December for cooperating against Bankman-Fried who awaits trial still today.

No Confirmation from Agencies

None of the above agencies have publicly confirmed Bloomberg’s statements yet, so this story remains incomplete until further news comes out about this situation or if any confirmation is made by any agency involved when more details come out later on regarding this developing story concerning FTX’s former employee Nishad Singh’s legal situation .

Conclusion

The implications that this case has on not only banks but crypto exchanges should be taken into account when looking at how businesses are run within these industries moving forward because they may become stricter due cases like this one coming up down the line if similar situations arise again soon enough in other places around the world eventually leading towards tighter regulations depending on what happens with cases like these ones involving Nishad Singh very soon enough in 2021 or 2022 accordingly at some point later on down the road possibly sooner rather than later depending on many different factors going forward essentially long term inevitably

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SEC Demands Documents on Charges Against FTX Founder SBF

| 12. Februar 2023

• The US House Committee on Financial Services has requested documents related to charges filed against FTX founder Sam Bankman-Fried by the Securities and Exchange Commission (SEC).
• Due to this, the lawmakers want the Commission to provide all records and communications of its employees between Nov. 2 to Feb. 9. in the enforcement division and office of the chairman relating to the SBF charges.
• The SEC is currently facing backlash over its recent enforcement action against the crypto exchange Kraken.

Charges Filed Against Sam Bankman-Fried

The United States House Committee on Financial Service has requested documents related to charges filed against FTX founder Sam Bankman-Fried by the Securities and Exchange Commission (SEC). The lawmakers wrote that the timing of the SEC’s charges against SBF raises „serious questions about its process and cooperation“ with the US Department of Justice (DoJ).

Request for Documents from SEC

Due to this, the lawmakers want the Commission to provide all records and communications of its employees between Nov. 2 to Feb. 9. in the enforcement division and office of the chairman relating to the SBF charges. The Committee further asked the financial watchdog to provide similar documents of its interactions with the DoJ during said period. The SEC has been asked to produce these documents before Feb. 24th.

SBF Arrested in Bahamas

SBF was arrested on Dec 12 in Bahamas after US Attorney Damian Williams filed criminal charges against him. On Dec 13, both SEC and Commodity Futures Trading Commission (CFTC) have also filed their own charges against him as well.

Backlash Against SEC Enforcement Action

The SEC is currently facing backlash over its recent enforcement action against crypto exchange Kraken which sparked a debate around regulation by enforcement for staking activities conducted by exchanges like Kraken, Binance etc.,

Conclusion

In conclusion, it appears that there are many raised questions regarding how exactly did SBF get charged, what was his relation with DOJ prior being arrested? Moreover, why is there such a sudden pushback towards crypto exchanges conducting staking activities? All these questions remain unanswered as we await more information from official sources involved in these cases

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Crypto Bottom? On-Chain and Macro Data Analyzed For Answer

| 6. Februar 2023

• The crypto market has seen significant turmoil in the past few months, culminating with the collapse of FTX in November 2022 and a three-year low of $15,500 for Bitcoin.
• Since then, Bitcoin has recovered and posted notable returns, but the market is still unstable due to ongoing bankruptcy proceedings and macro uncertainty.
• CryptoSlate analyzed on-chain and macro data factors to present both sides of the argument as to whether or not Bitcoin has bottomed.

Crypto Market Turmoil

The crypto market has been through a tumultuous period over the past few months due to significant sell-offs from prominent industry players such as Terra (LUNA) in June 2022 and FTX in November 2022. This culminated with a three-year low of $15,500 for Bitcoin.

Recovery But Unstable Market

Since then, Bitcoin has recovered somewhat and posted notable returns – hovering around $23,000 since the end of January 2023 – but the market remains unstable due to ongoing bankruptcy proceedings for FTX and other large companies as well as macroeconomic uncertainty caused by an impending recession.

Analyzing On-Chain & Macro Data

CryptoSlate looked at different on-chain and macro data factors that could either push Bitcoin down to a new low or suggest that it has already bottomed out. These included analyzing net position change in addresses holding over 1,000 BTC; long-term holder supply; perpetual funding rates; total supply in profit; various on-chain indicators; as well as Fed interest rate hike policy shifts.

Whales Accumulating & Long Term Holder Supply Increasing

The net position change analysis indicated strong cycle bottoms with whales embarking on an accumulation spree during the Terra collapse in June 2022 while long term holders were also increasing their supplies of Bitcoin similarly throughout this period. Perpetual funding rates were no longer negative while total supply in profit was growing which all showed positive signs that suggested a potential bottom had been set.

Fed Policy Shifts & Uncertainty Around Narratives

On top of this positive data analysis, shifts in Fed policies have also paused interest rate hikes which would provide some level of stability for cryptocurrencies going forward although there is always uncertainty around narratives which could further push Bitcoin down if things don’t go according to plan.

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