Silicon Valley Bank Parent Firm Files for Bankruptcy Protection

• SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection.
• The filing was submitted in the Southern District of New York and aims to preserve company value.
• Customers will receive funds from the Federal Deposit Insurance Corporation (FDIC).

Silicon Valley Bank Parent Firm Files For Bankruptcy Protection

SVB Financial Group, the parent company of Silicon Valley Bank, has filed for Chapter 11 bankruptcy protection in the Southern District of New York. This filing is intended to allow SVB to explore strategic alternatives as determined by a board-appointed restructuring team and preserve company value. The company believes it has $2.2 billion of liquidity, $3.3 billion of debt in aggregate principal amount of unsecured notes, and $3.7 billion of outstanding preferred equity. Joele Frank is involved in the case as well.

Services Remain Operational

Though Silicon Valley Bank has failed, services such as SVB Capital and SVB Securities will continue to provide services; however they are no longer associated with the failed bank.

Emergency Funds Available For Customers

The Federal Deposit Insurance Corporation (FDIC) will cover any portion that had been insured by Silicon Valley Bank for customers affected by its failure; meanwhile an emergency plan from the Biden administration and U.S Treasury will provide additional assistance to those who need it concerning their deposits at Silicon Valley Bank..

Causes Of Failure

The collapse occurred shortly after it announced plans to over $2 billion of funds which triggered a bank run on weekend deposits with cryptocurrency companies like Circle and BlockFi being among those affected .

Conclusion

In conclusion, SVB Financial Group’s voluntary filing for a court-organized reorganization under Chapter 11 may help preserve company value while also allowing customers access to their funds elsewhere via FDIC insurance or through emergency plans set up by the Biden Administration and U.S Treasury department.

SEC Wells Notice: What You Need to Know and What’s Coming Next

• The SEC issued Paxos a Wells Notice, indicating that they were under investigation for breaching regulations with their BUSD stablecoin.
• The Wells Notice is a document commonly used by the SEC to inform entities of charges that the regulator plans to bring.
• The SEC has no obligation to issue a Wells Notice and it allows the respondent to submit a written statement before any action is taken.

What Is A Wells Notice?

In 1972, the Securities and Exchange Commission (SEC) established a committee (led by John Wells) to review and assess the Commission’s enforcement policies and practices. As a result of their findings, the SEC introduced the Wells Notice as an opportunity for prospective defendants to address decision makers before an action is taken against them. Although not legally required, it is common practice for the SEC to issue these notices.

Paxos Receives Wells Notice

On February 21, Paxos halted the issuance of new BUSD tokens after receiving a Wells Notice from the SEC which alleged that their stablecoin was an unregistered security. This notice indicated that further enforcement action may be taken in response. However, Paxos clarified that there were no other allegations made against them and this notice did not impact USDP-USD collateralized stablecoins managed by Paxos.

Why Does This Matter?

The issuing of this particular Wells Notice is significant as it indicates that further enforcement action may be taken against Paxos by the SEC in relation to their BUSD token breach of regulations. It also raises questions regarding other similar products out on the market today, such as USDP-USD which are essentially identical but rely on different networks for management and minting purposes.

Conclusion

The issuing of this particular Wells notice highlights both how seriously regulators are taking breaches in regulation as well as potential areas where future regulation could be tightened up or enforced more strictly in order to protect investors from potential harm or exploitation.

Key Takeaways

• The SEC issued Paxos with a Wells Notice indicating they were under investigation for breaching regulations with their BUSD stablecoin • The Well’s Notices is commonly used by the SEC when informing entities of charges they plan on bringing • This particular instance raises questions regarding other similar products out on the market today such as USDP-USD

Coinbase Acquires ORDAM to Enhance Institutional Crypto Access

• Coinbase announced the acquisition of One River Digital Asset Management (ORDAM) on Mar. 3.
• Under Coinbase, ORDAM will become Coinbase Asset Management (CBAM), providing institutional customers with industry-leading products and services.
• Eric Peters, ORDAM’s current CEO, will remain in his duty and continue chairing CBAM after the acquisition.

Coinbase Acquires One River Digital Asset Management

Coinbase announced the acquisition of one river digital asset management (ORDAM) on Mar. 3. ORDAM will transform into Coinbase Asset Management (CBAM), a wholly owned subsidiary that focuses on providing institutional consumers with industry-leading products and services.

About One River Digital

One River Digital Asset Management is an investment adviser registered with the U.S Securities and Exchange Commission (SEC). It offers investment products to its institutional clients by exposing them to different digital assets through Coinbase Prime.

Eric Peters To Remain as Chairman of CBAM

Eric Peters, ORDAM’s current CEO, will remain in his duty and continue chairing CBAM after the acquisition is complete. He shares an ethos grounded in prudent risk management with both companies which enabled them to successfully navigate recent market turmoil.

Shared Passion For Investor Safety

Both companies share a joint passion for investor safety which has driven their decision to join forces to build an innovative digital asset management infrastructure focused on safety and soundness.

Conclusion

This acquisition marks a significant milestone for both companies as they work together to provide enhanced access for institutions looking to invest in crypto assets through CBAM’s industry-leading services and products.

Coinbase’s ‚Base‘ Raises Suspicions of Ethereum Network Neutrality

• Coinbase announced the launch of its Base product on Feb. 23, which is an Ethereum layer 2 enabling “anyone, anywhere” to build dApps cost-effectively.
• Chris Blec argued that Coinbase’s Base is a WEF play for CBDCs and a cashless society.
• Jesse Pollack said that Coinbase already has a captive userbase, meaning Base developers have access to a large, existing user group from the off.

Coinbase Launches ‚Base‘ Product

On February 23rd, 2021, Coinbase announced the launch of its new product called ‘Base’. This product is an Ethereum Layer 2 that enables anyone to build decentralized applications (dApps) at cost-effective rates.

Suspicions Over Ethereum Network Neutrality

Chris Blec argued that this new product could be part of the World Economic Forum’s plans to bring about Central Bank Digital Currencies (CBDC) tech and ultimately lead to a cashless society in the future. This rekindled suspicions over Ethereum’s neutrality towards its own network as it had previously been accused of being co-opted by entities who sought to censor and centralize operations on the blockchain following sanctions from U.S Treasury which stated that over $7 billion of illicit funds had been laundered through their protocol including those from North Korean hacking group Lazarus in 2022.

Why Is Coinbase ‚Base‘ Different?

Coinbase clarified that unlike other ETH Layer 2s, there will not be any token incorporated into it; instead it uses Ethereum as its native gas token for all transactions done on it. Moreover, Jesse Pollack noted how developers can benefit from Base by having direct access to Coinbase’s existing user base when building dApps on it from the get go – making this platform more attractive than others in terms of user accessibility and convenience at no extra costs involved.

Is ‚Base‘ The Cornerstone Of WEF Plans?

Blec further added that while Base will allow developers create whatever they want without permission required, users may need to verify their identities first before they can gain access or use certain functions or applications on this chain – thus turning it into what he calls “a KYC-chain” where personal data is collected in order for users to continue using such services available on this network. Furthermore, he posited whether this could possibly be part of WEF’s plan going forward with their CBDC intentions by allowing them control over who gets access or not based on personal information gathered beforehand.

Conclusion

Overall Coinbase’s ‚Base‘ product looks set to become an important factor in helping facilitate WEF plans for CBDCs and a cashless society moving forward – but at what cost remains unknown considering possible privacy concerns due to identity verification requirements expected from users wanting full access or utilise certain features provided by these applications built upon this layer 2 network ?

FTX Warns Creditors: Justin Sun-Backed FUD Tokens are Unauthorized

• FTX has warned its creditors against patronizing unauthorized debt tokens, including the Justin Sun-backed FTX User Debt (FUD) token.
• At launch, about 20 million FUD was minted, with plans underway to issue additional tokens as soon as FTX confirmed the debt amount.
• Following the Huobi listing of FUD, trading activities have slowed and its trading volume sits at $231,300 according to Coinmarketcap data.

FTX Warns Against Unauthorized Debt Tokens

Bankrupt crypto exchange FTX has warned its creditors against patronizing unauthorized debt tokens, including the Justin Sun-backed FTX User Debt Token (FUD). FUD is a debt token issued by Debt DAO with a claim of issuing FTX users‘ debt as a bond token.

Minting of FUD Tokens

At launch, about 20 million FUD was minted, with plans underway to mint additional tokens as soon as FTX confirmed the debt amount. Justin Sun had earlier backed the listing of FUD on Huobi Global claiming that FUD is a „top quality FTX debt asset.“ Following the Huobi listing, FUD surged to a high of $115.

FTX Disassociates from Project

FTX tweeted on Feb. 17 to disassociate itself from the project and warned creditors against dealing with such unauthorized schemes. The crypto community had expressed pessimism about the token as the DebtDAO has no website and its Twitter account was last active on Feb 8.

Recent Trading Activities for FUD

Over the last 24 hours, trading activities have slowed for FUD as its price fell below $16 and its trading volume sits at $231,300 according to Coinmarketcap data.

Conclusion

Fed Finds Bitcoin Shares Most Features of ‚Store of Value‘

• The Federal Reserve Bank of New York published a report showing that Bitcoin is similar to gold, but unable to replace the US dollar due to its volatility.
• The researchers examined the price of Bitcoin around intraday changes in money market forward rates in thirty-minute and one-hour intervals before and after scheduled FOMC announcements.
• The report concluded that Bitcoin is orthogonal to all macro news except for CPI.

New York Fed’s Report on Bitcoin

The Federal Reserve Bank of New York recently released a report called „The Bitcoin-Macros Disconnect“ which compares Bitcoin to gold. In the 31-page report, it was stated that Bitcoin performs more kin to a precious metal like gold, but warned that it can never replace the US dollar due to volatility.

Methodology Used

Using a quantitative methodology known as principal components analysis, the researchers examined the price of Bitcoin around intraday changes in money market forward rates in thirty-minute and one-hour intervals before and after scheduled FOMC announcements.

Fed Chair’s Opinion

This new report builds on statements made by Fed Chair Jerome Powell who asserted back in 2021 that: „Crypto assets are highly volatile […] They’re more of an asset for speculation, so they’re not particularly in use as a means of payment. It’s more of a speculative asset. It’s essentially a substitute for gold rather than for the dollar.“

Conclusion

The main conclusion from this study is that Bitcoin is orthogonal to all macro news that was considered except CPI. This stands in stark contrast with other traditional assets such as gold, silver, S&P 500, and various bilateral exchange rates which respond strongly to macroeconomic news.

Inflationary Impact on Cryptocurrency

Ethereum Lags Behind as L1s Outperform BTC

• Ethereum has underperformed Bitcoin by 4% in the past two weeks while most Layer 1 tokens have outperformed BTC.
• Native Token Returns show that Atom has outperformed BTC by 9.7%, Matic has outperformed BTC by 14.98%, SOL has outperformed BTC by 3.3%, DOT has outperformed BTC by 0.9%, and BNB has underperformed against BTC by -0.9%.
• ETH, however, continues to be the worst performer, having underperformed against BTC by -4.45%.

Ethereum Underperforming Against Bitcoin

Ethereum (ETH) has been a major underperformer against Bitcoin (BTC) in the last two weeks, with its price falling to its lowest level in three months relative to that of Bitcoin’s. While many layer-one tokens have performed better than Bitcoin over the same period, Ethereum remains the worst performer among them all.

Native Token Returns

The Native Token Returns for different layer-one tokens compared to Bitcoin are as follows: Atom (ATOM) – 9.7%; Matic (MATIC) – 14.98%; Solana (SOL) – 3.3%; Polkadot (DOT) – 0.9%; and Binance Coin (BNB) -0 .9%. Meanwhile Ethereum continues to be the worst performer with a return of -4.45%.

Investment Disclaimer

CryptoSlate warns investors not to take any action based on content within this article as it may result in losses trading cryptocurrencies in general as it is considered a high-risk activity and due diligence is advised before taking any action related to content within this article or other articles on CryptoSlate platform or website network as a whole..

About The Author

James Van Straten is an experienced research analyst at CryptoSlate who is passionate about data, technology and identifying trends within cryptocurrency markets across different asset classes.. He believes that bitcoin is one of the greatest inventions of 21st century and advocates freedom & technology maximalism alike..

Conclusion

In conclusion, ETH/BTC broke down to its lowest price level in three months and continues to underperform against BTC while majority of other L1s have seen positive returns over the same period of time though Ethereum stands out as the worse performer among them all with a return of negative 4.45%.

Canto’s Price Surges: Is It Due to Note Volume or Something Else?

• Investors are questioning the sudden rise in Canto’s price and attributing it to a spike in Note volume.
• Note is a quasi-stablecoin issued by Canto and pegged to USDT/USDC.
• Canto provides a decentralized trifecta of offerings, including a Free Public Infrastructure, a zero-fee DEX, and a CLM lending market.

The crypto market has seen a surge in activity in recent months, and Canto is no exception. The Layer-1 decentralized token has seen its price rise sharply, leaving some investors scratching their heads. Some have suggested that the surge in Canto’s price could be attributed to a spike in the volume of Note, a quasi-stablecoin issued by Canto and pegged to USDT/USDC.

This has led some to speculate that the token may eventually face downward pressure due to its connection to Note, cautioning investors that a collateralized peg may be different only semantically to the TerraUSD/UST algorithmic stablecoin, which collapsed in 2022 after its peg fell short resulting in a run on nearly $45 billion worth of assets.

However, members in the Canto discord community were quick to dismiss the FUD, pointing out that Note is 100% collateralized by stablecoins, unlike UST which was not. They also highlighted the fact that Canto’s business model centers on what is known as Free Public Infrastructure, which it likens to free parking on a city street, with the Canto DEX being a zero-fee DEX for liquidity providers.

The business model also includes a Canto lending market (CLM), which provides users funds pooled through its lending compound v2 fork. Note completes the decentralized trifecta of offerings by Canto, described as a „full collateralized money-on-chain solution“.

In addition to Note, Canto also offers a range of other features, such as its own smart contract language and its Ether-based ecosystem. These features are designed to provide users with a secure and efficient way of transacting and exchanging tokens, as well as a platform for building decentralized applications.

Ultimately, only time will tell whether the rise in Canto’s price is due to a surge in Note’s volume, or if it is the result of something else. Nevertheless, Canto is a promising project that offers a range of features and services that could be of great benefit to the crypto community. As such, investors should keep a close eye on the project and its development.

SEC Must Take Lead on Crypto Fraud to Protect Investors: Warren

• Elizabeth Warren urged banking and environmental regulators to fight crypto fraud along with the Securities and Exchange Commission (SEC).
• The failure of crypto firms has especially impacted Black investors and people from underbanked communities.
• The senator said that with Gary Gensler at the helm, the SEC has held banks and public companies responsible for the risks of cryptocurrency custody.

U.S. Senator Elizabeth Warren recently spoke out about the importance of strictly regulating the crypto industry, saying that the solution to crypto fraud begins with the SEC. Warren stated that during the past 12 months the crypto industry has seen giants like Celsius and FTX collapse under the weight of their own „fraud, deceit, and gross mismanagement,“ creating an urgent need to protect „honest investors“ that are victimized.

The senator noted that the failure of these crypto firms has especially impacted Black investors and people from underbanked communities, and that the crypto industry is „scared“ of a strong SEC, spending millions to escape oversight. Warren asserted that the regulators‘ approach to crypto regulation has varied under different leadership, noting that during the administration of President Donald Trump, regulators gave a „green light“ to junk tokens and unregistered securities, rug pulls, Ponzi schemes, pump-and-dump schemes, money laundering, and sanctions evasion.

However, Warren said with Gary Gensler at the helm, the SEC „has made a good start,“ noting that the SEC has held banks and public companies responsible for the risks of cryptocurrency custody. It has also prevented the launch of a cryptocurrency ETF, Warren said, though she believes the SEC should also take a more active role in stopping crypto fraud. The senator suggested that the SEC should take a hard stance on firms that use their own tokens to create incentives to invest, and should also increase transparency and disclosure requirements for crypto firms.

In addition, Warren urged banking and environmental regulators to fight crypto fraud along with the SEC, and said that the regulators should take a closer look at the environmental impact of crypto mining. Warren concluded by saying that fighting crypto fraud is a problem that can be solved, and that the solution starts with the SEC.

Gemini Cuts 10% of Staff Due to Global Economic Crisis and Crypto Fraud

• Crypto exchange Gemini is set to cut 10% of its staff due to macroeconomic conditions and industry fraud.
• This marks the third major layoff in the past 8 months, with previous cuts of 10% and 15% due to market conditions.
• Gemini was forced to end its Earn product after a public spat with bankrupt crypto lender Genesis and its parent company Digital Currency Group (DCG).

Crypto exchange Gemini is the latest firm to be adversely affected by the macroeconomic conditions of the global marketplace, announcing a 10% cut in its staff. This marks the third major layoff in the past 8 months, following previous cuts of 10% and 15% due to market conditions.

Gemini co-founder Cameron Winklevoss blamed the latest layoff decision on „persistent negative macroeconomic conditions“ and „unprecedented fraud“ within the crypto industry. Winklevoss said the exchange was left „with no other choice but to revise our outlook and further reduce headcount.“

The crypto exchange also had to face a public spat with bankrupt crypto lender Genesis and its parent company Digital Currency Group (DCG), which forced them to end their Earn product. Gemini claims the lender owes its Earn user $900 million; however, Genesis court filing pegged the debt at $765.9 million.

The current market conditions have made it difficult for many crypto firms to thrive, as the pandemic has caused a global economic crisis. Gemini is yet another example of how the pandemic has affected the crypto industry, and the exchange is not alone in its struggles. Many other crypto companies have had to make cuts in order to stay afloat, and many more will likely follow suit in the near future.

The crypto industry is still in its infancy, and the current economic conditions have made it even more difficult for firms to survive. Despite the challenges, many firms have managed to stay afloat and have even grown despite the difficult times. As the industry continues to mature, it is likely that more firms will be able to weather the storm and continue to innovate and expand.