Btefnet

• GoerliDAO, a decentralized autonomous organization, is advocating for keeping the Ethereum Goerli test network active.
• GoerliDAO hopes to use goerli ether (gETH) to incentivize activity on the network.
• This would create a canary network closely resembling the mainnet and pave the way for future innovation in decentralized finance.

Goerli Test Network Could Become Ethereum’s Canary Network

The future of the Ethereum Goerli test network remains uncertain, but a little-known Ethereum community is rallying behind the network in the hope that a solution can be found to keep it going. GoerliDAO, a decentralized autonomous organization, is making the case to continue Goerli as an active blockchain network and using goerli ether (gETH) to incentivize activity on the network.

Advantages of Incentivized Canary Networks

An incentivized canary network like Goerli offers unique advantages to builders and users alike, and the concept has seen success on many blockchains – most notably with Kusama in relation to Polkadot. The preservation of Goerli as a canary network will not only fill a crucial need within the Ethereum ecosystem but also pave the way for future innovation and incentivization in the world of decentralized finance.

What Are Testnets?

Testnets are testing environments that mimic real-world blockchain usage, allowing developers to find and patch critical bugs for upcoming products or features meant to be deployed on a blockchain’s main, or live, network. Much of the testing of Ethereum’s major upgrades such as The Merge have been conducted on Goerli; thus keeping such testing environments alive is what those behind GoeriDAO are advocating for.

What Is A Canary Network?

A canary network is an independent chain that emulates most or all features of its corresponding mainchain; it serves as an environment where new updates and products can be tested out before they get released onto mainnet – thus providing an additional layer of security when deploying new code onto production networks.

Conclusion

The creation of an incentivized canary network like Goerli could provide numerous benefits both builders and users alike by better enabling secure deployment onto production networks; furthermore it could also open up opportunities for greater innovation within Decentralised Finance ecosystems like Ethereum’s own DeFi platforms in order ensure their stability & longevity into the future.

• Meta Platforms announced the end of its NFT program, which hindered Web3 creators.
• AI is making inroads to Web3 and there are rules around IP rights for works created with AI.
• NFT artists shared their views on utilizing AI in their work.

Meta Platforms Ends Support for NFTs

Meta Platforms, the parent company behind Facebook and Instagram, recently announced it would be winding down its support for non-fungible tokens (NFTs). This decision could potentially hinder Web3 creators who used the feature to mint and sell their creations on the platforms and collectors to display their NFTs. Stephane Kasriel, Meta’s head of commerce and financial services said in a statement that they „learned a ton“ from this program but would continue to build products to support creators and people looking to buy digital collectibles.

AI’s Impact on Web3

Artificial Intelligence (AI) is making its way into Web3, bringing up potential issues surrounding intellectual property (IP) rights of works created with the help of AI. The Airdrop spoke with several NFT artists about their view on utilizing AI in their work, including whether or not it should be considered as an infringement of copyright laws.

Yuga Labs New CEO

In other news related to Web3, Yuga Labs welcomed Daniel Alegre as its new CEO—his first public appearance since assuming the position. He is expected to make some significant changes within Yuga Labs during his tenure as CEO.

Deputy Managing Editor for Web3 News Section

Rosie Perper was appointed Deputy Managing Editor for the Web3 news section. She focuses on topics such as metaverse, NFTs, DAOs and emerging technology like VR/AR; she has extensive experience working across breaking news, global finance tech culture and business. Additionally, Rosie holds a small amount of BTC and ETH along with several NFTs.

The Airdrop Newsletter

The Airdrop newsletter covers all the biggest stories within the world of Web3 each week; readers can sign up here to get it delivered directly into their inboxes every Friday.

• The U.S. Department of Justice and the Securities and Exchange Commission were investigating Signature Bank for lax money laundering monitoring procedures.
• The Federal Reserve shut down Signature Bank on March 12th due to state regulations.
• Binance US has offered a $1 billion deal to purchase assets from bankrupt crypto lender Voyager Digital, but the U.S. government has put this on hold until legal objections are solved.

Signature Bank Investigated by DOJ and SEC

The U.S. Department of Justice (DOJ) in Washington D.C., and in New York, as well as the U.S Securities and Exchange Commission (SEC), were investigating possible lax monitoring at Signature Bank to prevent money laundering, according to people familiar with the matter, reported Bloomberg Wednesday.

Signature Bank Shut Down By State Regulators

New York-based Signature Bank which had a number of crypto clients was shut down by state regulators on March 12th, said the Federal Reserve at the time of closure. Spokespeople for the Federal Deposit Insurance Corp.(FDIC), DOJ, the U.S Attorney’s Office in Manhattan and SEC declined to comment when asked by Bloomberg about why exactly they were looking into Signature Banks activities or money laundering concerns that may have been present prior to its closing down by state regulators earlier this month

Binance US To Purchase Assets From Voyager Digital

Binance US has offered a $1 billion deal to purchase assets from bankrupt crypto lender Voyager Digital; however, this is currently being held up pending legal objections from the U.S government before it can be finalized .

Hash Panel Discusses Latest Developments And Regulatory Implications Around Voyager-Binance Deal

The Hash panel discussed some of latest developments and regulatory implications around proposed Voyager-Binance deal following its announcement earlier this week .

Conclusion: Regulatory Concerns Surrounding Crypto Deals

It is clear that regulatory concerns surrounding crypto deals are increasing significantly with more investigations being carried out into potential suspicious activities which could lead to larger issues if not addressed properly moving forward .

• FTX has recently filed for Chapter 11 bankruptcy, disclosing a “massive shortfall” in assets.
• The identified deficit between customer payables and total assets was $1.6 billion in bitcoin and $870 million in ether.
• This article provides an analysis of FTX’s most recent bankruptcy documents and its MAPS problem.

FTX Bankruptcy Documents Analysis

FTX has recently filed for Chapter 11 bankruptcy, citing a “massive shortfall” in assets worth $2.2 billion and counting. A presentation was made by the exchange detailing the asset categories of Category A (tokens with a market capitalization of at least $15 million and an average daily trading volume of at least $1 million) and Category B (tokens that do not meet those criteria or are largely held or controlled by the estate).

Category A Assets

Category A assets include cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and cash. According to the filing, the identified deficit between customer payables, which are customer balances, and total assets was $1.6 billion in Bitcoin and $870 million in Ether.

MAPS Problem

The MAPS problem is an acronym for Margin Account Protection System which is meant to protect customers from losses due to forced liquidations on margin positions taken out with borrowed funds from the exchange itself. While this system theoretically should have been able to protect customers from losses due to price fluctuations, it appears that it failed spectacularly in this case due to either fraudulent activity or mismanagement of funds by FTX’s leadership team.

Consequences

The magnitude of these deficits could have serious consequences for investors who had their funds locked up at FTX during its bankruptcy proceedings. It also raises questions about whether there were any other potential liabilities that may be revealed when more details become available during the course of FTX’s bankruptcy process.

Conclusion

As John J Ray III leads FTX through bankruptcy proceedings, more details will be revealed about how exactly this massive deficit came about – whether it be through fraudulent activity or mismanagement of funds by FTX’s leadership team remains to be seen – but one thing is clear: FTX’s creditors will likely bear significant losses as a result of these findings outlined in their bankruptcy filings.

• Term Finance, a DeFi protocol for fixed interest borrowing, is preparing to launch at the end of March.
• Term Labs, the platform’s builder, raised $2.5 million in seed funding led by Electric Capital with participation from Coinbase Ventures, Circle Ventures and others.
• The goal of Term Finance is to create a benchmark yield curve for the DeFi space that can facilitate short-term borrowing and lending transactions.

Term Finance Readies for Business

Term Finance, a decentralized finance (DeFi) protocol for fixed interest borrowing, is preparing to go live around the end of March. The platform aims to bring fixed-rate lending and interest-rate derivatives to DeFi and provide a benchmark yield curve for the space.

Funding Round Led by Electric Capital

Term Labs, the platform’s builder, raised $2.5 million in a seed round led by Electric Capital with participation from Coinbase Ventures, Circle Ventures and others. There was also angel investment from the founders of DeFi stalwarts Aura, Balancer, Hashlow and Llama.

Goal of Creating Benchmark Yield Curve

The goal of Term Finance is to create a benchmark yield curve for the DeFi space that can facilitate short-term borrowing and lending transactions similar to traditional centralized finance operations without any hidden transaction costs or slippage. According to Dion Chu (founder & CEO of Term Labs), this will be „the lubricant of entire financial market“.

Risk Mitigation Measures in Place

In order to reassure institutional investors after last year’s crypto scandals, it is important that risk mitigation measures are put into place such as over-collateralized loan agreements and tamper-proof digital contracts which were available on most decentralized lending platforms last year when centralized ones failed due to lack of trustworthiness or security breaches.

Conclusion

Overall this new platform looks promising as it provides an efficient way for users to borrow money securely while allowing lenders an opportunity to earn returns on their investments without having any hidden fees or risks involved in their transactions. This could potentially revolutionize how people access capital in future years as more people become interested in investing within cryptocurrencies and blockchain technology applications like this one!

Summary

• Zipmex, a Southeast Asian cryptocurrency exchange, plans to restart customer withdrawals once a deal it signed with a venture capital firm last month is finalized.
• The company’s scheme manager, investment firm KordaMentha, aims to finalize withdrawals on the condition an investment deal will close by Mar. 21.
• Zipmex is facing a probe from Thailand’s securities regulator over whether it was operating without permission.

Background

In November 2020, Zipmex found itself embroiled in a credit crunch due to its issuance of two loans worth $53 million that were not repaid. It is reported that the exchange is now under investigation from Thailand’s securities regulator over whether it was operating without permission. In order to avoid further financial issues, Zipmex reached an agreement with a venture capital firm and announced plans to restart customer withdrawals once the deal has closed.

Withdrawal Process

To facilitate the withdrawal process, all eligible creditors are required to fill out a form with the amount owed by Feb. 21. Investment firm KordaMentha will then be able to finalize withdrawals on the condition that an investment deal closes by Mar. 21.

Status of Rescue Deal

According to Zipmex CEO Marcus Lim, the „rescue deal“ between Zipmex and the venture capital firm has been „signed but not closed.“ However he noted that progress has been made and they are hopeful for closure soon.

Risk of Investigation

Since November 2020, Zipmex has been at risk of investigation from Thailand’s securities regulator about its operations without permission; however this does not seem prevent them from reopening their customer withdrawal system once their rescue deal is completed and closed.

Conclusion
It appears as though Zipmex will be able to reopen customer withdrawals soon providing their rescue deal agreement is finalized and closed according to schedule . All eligible creditors must submit details regarding funds owed by Feb 21st in order for KordaMentha to complete their side of the bargain before March 21st .

• Bitcoin and Ether fell on Monday due to investors fretting over inflation data, stablecoin regulation and the Kraken exchange incident.
• The New York Department of Financial Services issued an order for Paxos to stop minting new Binance USD tokens (BUSD).
• Investors will be eyeing Tuesday’s consumer price index (CPI) to see if the U.S. Federal Reserve’s monetary policy has continued to chip away at inflation.

Cryptocurrency Markets Drop

Cryptocurrency markets experienced a downturn on Monday as Bitcoin dropped 1.4% to trade around $21,640, while Ether fell below $1,500. This decrease was caused by investors worrying over upcoming inflation data, stablecoin regulation and the recent Kraken exchange incident.

Regulatory Activity in the Stablecoin Sector

The New York Department of Financial Services ordered Paxos to stop minting new Binance USD tokens (BUSD), claiming that the token was not being managed in a safe manner. As a result of this order, BUSD dropped to 0.9950 cents against its rival tether (USDT) on the Binance exchange, according to crypto data firm Kaiko.

Consumer Price Index (CPI)

Investors are looking forward to Tuesday’s consumer price index (CPI) report which will indicate whether or not the U.S Federal Reserve’s monetary policy has been successful in reducing inflationary pressure and predicting potential interest rate hikes in the future. In December 2020, CPI dipped 6.5%, signaling downward momentum that has positively impacted riskier asset markets; however Fed governors remain concerned about over-tightening money supply and causing economic recession..

Kraken Incident

Bitcoin had previously traded above $24000 as recently as February 1st 2021 but since then BTC’s value has decreased significantly after crypto exchange giant Kraken agreed to shut down its staking service within US borders and pay a fine of $30 million for settlement with the US Securities & Exchange Commission (SEC).

Conclusion

To conclude, cryptocurrency markets have seen significant drops due regulatory activity in terms of stablecoin regulations as well as inflation expectations from tomorrow’s CPI reports along with an incident involving crypto exchange giant Kraken which is expected to have long-term consequences for BTC prices going forward

• DCG and Genesis have reached an agreement with a key group of creditors to sell the Genesis Trading Unit as part of its bankruptcy restructuring.
• Cleary Gottlieb attorney Sean O’Neal explained that DCG will contribute the Genesis Global Trading unit to Genesis Global Holdco, which will be marketed and sold as a package.
• The proposed deal also involves a restructuring of debt between DCG and Genesis Holdco, with two tranches denominated in U.S. Dollars and Ethereum.

DCG Creditor Pact Revealed With Plan to Sell Genesis Trading Unit as Part of Bankruptcy

Earlier Monday, CoinDesk reported that DCG and Genesis had reached an agreement with a key group of creditors. By Nikhilesh De, Nick Baker Feb 6, 2023 at 10:02 p.m. UTCUpdated Feb 7, 2023 at 2:59 p.m. UTC

Details of Agreement

Digital Currency Group (DCG) intends to sell its subsidiary Genesis‘ crypto trading business as well as its lending arm, which is restructuring through bankruptcy, a Genesis attorney said Monday as the company revealed a pact with creditors. Cleary Gottlieb attorney Sean O’Neal, representing Genesis, explained the proposed settlement during the status hearing for the crypto lender which filed for bankruptcy protection last month. Under the settlement, DCG would contribute that entity [Genesis Global Trading] to [Genesis Global Holdco] … that will happen on the effective date,“ O’Neal said“. In addition to this transaction there will be a restructuring of debt owed from DCG to Gensis Holco under new terms involving two tranches denominated in U.S dollars and Ethereum .

CoinDesk’s Coverage

CoinDesk reported earlier Monday that DCG and Gensis had reached an agreement with key creditors regarding these matters . CoinDesk , like Gensis is owned by DCG .

About Digital Currency Group

Digital Currency Group founder Barry Silbert (DCG) is dedicated to building digital currency businesses globally by providing thought leadership through investing , media , public policy advocacy , development capital ,and recruitment services .

Conclusion

In conclusion , Digital Currency Group has come to an agreement with their subsidiaries Gensis regarding selling off their trading unit while also restructuring debt via two tranches denominated in USD & ETH . This was first reported by CoinDesk who are owned by Digital Currency Group just like Gensis itself .

• Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in New York.
• Even as Genesis‘ crypto-lending business entered bankruptcy court protection, the company’s trading arm, which remained out of Chapter 11, is still moving money around on blockchains – a sign the business was still running at least somewhat as normal.
• About $125 million was sent to exchanges in the run-up to Genesis‘ lending division filing for Chapter 11 protection. More was moved the next day.

Genesis Global Holdco LLC, the holding company of the troubled cryptocurrency lender Genesis Global Capital, recently filed for Chapter 11 bankruptcy protection in New York. This filing was made after the company was hit hard by two of the biggest industry collapses of 2022. Despite this, CoinDesk News Desk Managing Editor Danny Nelson reports that the company’s trading arm, which remained out of Chapter 11, is still moving money around on blockchains – a sign that the business is still running at least somewhat normally.

Before the filing for Chapter 11 protection, around $125 million was sent to exchanges. Even more money was moved the next day, with the Genesis over-the-counter (OTC) trading desk sending funds to multiple wallets, including some owned by exchanges such as Huobi and Coinbase. This suggests that the trading arm is still operating, indicating that the business could still be relatively normal despite the bankruptcy filing.

The news of the trading arm’s activity comes at a time when the crypto industry is facing a period of uncertainty due to the recent tumult. While the bankruptcy filing of Genesis’ lending division is a sign of the industry’s fragility, the fact that the trading arm is still active is a sign of relative normality. It’s a reminder that despite the current state of the industry, there are still some aspects of the market that remain stable and functioning.

This stability is important for the crypto industry, as it helps to bring reassurance to investors and traders that the market can still function even in the face of uncertainty. As the industry continues to grow, this stability will be increasingly important, and it’s reassuring that the trading arm of Genesis is still active.

Although the exact implications of the trading arm’s activity remain to be seen, it’s clear that the crypto industry is still functioning, even in the face of turmoil. This is a sign of relative normality and could help to bring some much needed stability to the market.

• In November, crypto lending firm Genesis held $5.1 billion in liabilities.
• This was revealed in a first-day motion in the U.S. Bankruptcy Court for the Southern District of New York.
• The liabilities came following Genesis‘ freeze on withdrawals due to the collapse of FTX and sister company Alameda.

Crypto Markets Today reported on the news that crypto lending firm Genesis held $5.1 billion in liabilities in the weeks following its freeze on withdrawals in November. This was revealed in a first-day motion in the U.S. Bankruptcy Court for the Southern District of New York, which was signed by interim CEO Derar Islim. The motion provided a breakdown of Genesis’ financial state heading into its restructuring.

The liabilities stemmed from the collapse of FTX and sister company Alameda, which sparked a “run on the bank” as customers demanded Genesis repay $827 million in loans. Consequently, the lending units were forced to freeze withdrawals, leaving Genesis with $5.1 billion in liabilities. This move caused the three Genesis entities – Genesis HoldCo, Genesis Global Capital LLC and Genesis Asia Pacific PTE. LTD – to file for Chapter 11 bankruptcy protection.

The events leading up to Genesis’ financial troubles began with the crash of FTX and Alameda. In October, the two companies lost $5.5 billion in assets and faced negative market sentiment due to the risks associated with their business model. This caused extreme volatility in the crypto markets, resulting in losses for many companies.

The losses were especially difficult for Genesis, as its business model relied heavily on FTX and Alameda. As a result, Genesis was left with no other option but to suspend withdrawals and file for bankruptcy protection.

The news of Genesis’ financial troubles had a ripple effect throughout the crypto markets, as investors became more cautious about their investments. This caused the price of Bitcoin to dip slightly, as well as the prices of other cryptocurrencies.

Despite the news, many in the crypto industry remain optimistic about the future of the sector. Many believe that the crypto markets are still in a nascent stage and that the sector will continue to grow in the coming years.

In the meantime, Genesis is in the process of restructuring its business model and developing a new strategy for the future. The company is working to create more transparency for its customers and to ensure that its business practices are in line with regulatory standards.

Genesis’ financial troubles have been a lesson for the entire crypto industry. It has highlighted the importance of having robust risk management practices in place and of being aware of the risks associated with investing in the crypto markets. It has also demonstrated the need for more regulation in the sector to protect investors’ interests. As the industry continues to grow, it is likely that similar situations will arise in the future, so it is important to be prepared.