FTX Dreams of Reboot Fade Amid Technical Woes

• The Wall Street Journal reported in January that FTX was thinking of rebooting the exchange, sparking excitement within the industry.
• However, interviews with former customers of FTX raise questions about whether there is anything worth bringing back.
• Woefully high latency, bugs in the API traders use to interface with FTX and coding mishaps plagued the exchange since its inception and have complicated potential revival plans.

Dreams of Rebooting FTX Face Reality

When John J. Ray III told The Wall Street Journal in January that he was thinking of rebooting cryptocurrency exchange FTX, it made a splash in the industry. Despite financial woes ultimately leading to its collapse in November 2022, there seemed to be something worth bringing back – exciting both creditors and former customers alike.

Technical Problems Challenged Revival Plans

However, interviews with people at major trading firms who did business at FTX reveal that technical issues may be complicating any potential revival plans. Woefully high latency, bugs in the API traders used to interface with FTX and coding mishaps were all present since its inception, making it difficult for Ray to make progress on his reboot plans after two months.

FTX Technology Was Not Well-Regarded

The technical side of FTX was not well-regarded by former clients who spoke to CoinDesk about their experiences using the exchange’s technology. Latency issues caused slowdowns which could lead to missed opportunities when trading or entering trades too late due to delays or errors in communicating between users’ computers and those of other users on the platform. Additionally, bugs found in APIs used by traders made it difficult for them to rely on data from sources hosted by FTX and coding mishaps led many traders away from using their services altogether.

Anthony Scaramucci’s Involvement

Anthony Scaramucci has been involved with this project as well as a part of “FTX: What Happened” which aims to uncover more information about why exactly this platform failed so quickly after its launch into the market. He will be joined by Brett Harrison (Founder & CEO) and Architect Don (President of U.S arm) during this event held online where they will provide crucial insight into what went wrong with FTX’s short-lived success story.


Based on interviews with former customers and other experts within the industry it appears that while dreams of reviving this short lived success story remain alive; realities show that technical problems have played a huge role in keeping these plans from coming into fruition so far. With Anthony Scaramucci joining forces with Brett Harrison & Architect Don during “FTX: What Happened” we can gain further insight into why exactly this platform failed so quickly after its launch into the market but until then speculation remains rife regarding whether or not a successful reboot is even possible at this point given how much damage has already been done due to poor technical design choices made during its creation process..

Minting NFTs at the Ends of the Earth: FOTO’s John Knopf

• John Knopf is an Emmy Award-nominated landscape photographer who works for National Geographic, and was an early adopter of NFTs.
• Together with seven other prominent photographers, Knopf helped found FOTO, a collective geared at training artists to work in Web3.
• Time magazine partnered with FOTO on its own NFT drops and Knopf’s work has also been featured in other notable galleries.

Photography and Web3: A Perfect Match

Good photography often requires both technical skill and artistic sensibility – making it ideal for experimentation in the world of Web3. However, many non-fungible token (NFT) creators and collectors have noted that it took a while for “photography NFTs” to take off.

John Knopf and the Founding of FOTO

Emmy Award-nominated photographer John Knopf was an early adopter of crypto technology, entering the space during the bull market era of NFTs in hopes of making a quick buck. But instead he became enthralled with what distributed networks could do for digital art – leading him to found FOTO alongside seven other prominent photographers: Alejandro Cartagena, Ben Strauss, Cath Simard, Dave Krugman, Isaac “Drift” Wright, J.N Silva and Ravi Vora.

FOTO’s Goals

The goal behind FOTO is to train artists to work within Web3 as well as elevate digital art through sponsored galleries exhibitions and events – all without profiting from any artist sales or purchases. In 2021 alone Time Magazine partnered with FOTO on their own NFT drops while John’s work has been featured in other notable galleries such as one from cryptocurrency exchange Coinbase earlier this year.

Why Photography?

Knopf explains that photography is especially well suited to be used within the world of Web 3 due to its need for both technical skill and artistic sensibility which can be combined together using modern technologies like blockchain or cryptocurrencies such as Ethereum or Bitcoin Cash. This allows photographers to create unique pieces that can be collected by enthusiasts around the world without having ever met them face-to-face or even knowing their exact location!

The Future of Photography NFTs

As more people become aware of crypto technology’s potential use cases like photography NFTs will only continue to grow in popularity over time – creating new opportunities for artists everywhere! With his experience working within the industry already it will be interesting to see what else John Knopf can bring us in terms of innovative applications between digital culture & blockchain technology going forward into 2023 & beyond…

Siren Collection Drops: Starbucks Odyssey Releases Limited-Edition NFTs

• Starbucks Odyssey, the coffee company’s Web3 loyalty program, today released its first limited edition non-fungible tokens (NFTs).
• Members of the program were able to buy two stamps each starting at 12 p.m. ET and could pay by credit card or by connecting their MetaMask wallet.
• Despite some issues with the site being overwhelmed by traffic, the collection sold out in 18 minutes and secondary sales quickly soared, with the floor price for a Siren Stamp already passing $550.

Starbucks Odyssey Releases ‘The Siren Collection’

Starbucks Odyssey, the coffee company’s Web3 loyalty program, recently released its first limited edition non-fungible tokens (NFTs), titled “Stamps,” from an edition of 2,000 featuring its iconic siren.

Available For Purchase

Members of Starbucks Odyssey were able to purchase up to two “Stamps” starting at 12 p.m ET on March 9th 2021 and could pay by credit card or by connecting their MetaMask wallet.

Launch Issues

Unfortunately, the launch was not without issues as many members experienced problems accessing the site and error messages due to overwhelming traffic.

Sold Out Quickly

Despite these issues, within 18 minutes all Stamps had sold out and secondary sales quickly soared with the floor price for a Siren Stamp already passing $550 USD.


The release of this NFT was successful despite some technical issues encountered during launch due to heavy demand for these unique digital assets which are now trading significantly above initial sale prices.

Shapella: Ethereum Devs’ New Name for Upcoming Upgrade

• Ethereum developers have started to refer to the upcoming hard fork as “Shapella.”
• This is a combination of the Shanghai upgrade (execution layer) and Capella (consensus layer).
• Both upgrades are expected to roll out sometime next month.

What is Shapella?

Ethereum developers have started to refer to the blockchain’s upcoming hard fork – in this case a key upgrade – as “Shapella.” This is a combination of the Shanghai upgrade (execution layer) and Capella (consensus layer), which are both expected to roll out sometime next month.

Understanding Ethereum Before The Merge

To understand what the two layers are, one needs to understand Ethereum prior to when it went through the last upgrade, the Merge. Ethereum’s old proof-of-work blockchain was also known as the execution (application) layer. When Ethereum began its proof-of-stake (PoS) chain, also known as the consensus layer, developers were originally going to transition over to just the PoS chain. But that seemed to be too complicated of a task for developers, so they decided to merge the two chains together – hence the “Merge.”

The Shanghai Upgrade

The reason this matters – in regards calling it Shapella – is that each layer has different names for their respective upgrades. The execution layer will undergo the Shanghai upgrade while on the consensus side it’s known as Capella. Therefore, merging both names into one – “Shapella” – creates an easy way for developers and other users of Ethereum’s network alike can reference both updates without confusion or difficulty.

The Impact Of Shapella On The Crypto Space

The imminent launch of Shapella will bring many changes within Etheruem’s network such as increased transaction speeds, lower gas fees and improved scalability overall. This could potentially allow more users access onto Ethereum’s platform due to its new capabilities allowing for faster and cheaper transactions than before Shapella’s launch.


In conclusion, Shapella is not just another update within Etheruem’s network but rather a combination of two separate upgrades occurring within different layers of Ethereum . By merging these two updates into one – “Shapellla” – brings ease and clarity when referencing this highly anticipated change coming soon.

Platypus to Repay 63% of User Funds After $9M Hack

Platypus Finance Repays 63% of Funds After $9M Hack

  • Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins, has announced that it will repay at least 63% of funds to users after last week’s attack.
  • The hacker used a Binance account that went through know-your-customer checks and Platypus managed to recover part of the stolen digital assets with the help of blockchain security firm BlockSec.
  • The protocol also worked with crypto exchange Binance to confirm the exploiter’s identity and has filed a complaint in France.

Exploit Details

Last week, an exploit occurred in the Platypus platform’s solvency check mechanism which allowed hackers to steal $9.2 million worth of digital assets. This included Circle’s USDC, Tether’s USDT, Maker’s DAI and Paxos’ binance USD from the protocol’s main pool. The exploit consisted of three consecutive attacks: the first attack drained a total of $8.5 million in stablecoins while the second mistakenly transferred $380,000 worth of stablecoins to lending protocol Aave.

Recovery Efforts

Platypus was able to recover $2.4 million of stolen USDC stablecoins with the help of blockchain security firm BlockSec. Additionally, Tether froze $1.5 million worth of stolen USDT tokens. The protocol has submitted a proposal to Aave’s governance forum for the release of those assets and some $287,000 worth were also recovered from other sources according to its blog post on Thursday.

Binance Collaboration

Platypus worked with crypto exchange Binance to identify the exploiter responsible for last week’s attack and contacted law enforcement as well as filing a complaint in France regarding this incident.

User Repayment

In conclusion, Platypus Finance will be repaying at least 63% back to users affected by this hack using their own funds as well as any recovered funds from external sources such as Blocksec or Tether freezing wallets associated with this incident.

Coinbase Downgraded to Neutral: Time to Take Profits?

• DA Davidson downgraded Coinbase (COIN) from buy to neutral as the stock has more than doubled this year.
• Regulatory concerns and a weak Q4 earnings report are adding to the near-term uncertainty for Coinbase.
• Despite the downgrade, D.A. Davidson remains bullish on Coinbase over the long term, raising their price target to $60 from $55.

Coinbase Downgraded Ahead of Earnings

D.A. Davidson analyst Chris Brendler has downgraded Coinbase (COIN) to Neutral from Buy after its big run higher early this year sent the shares surging past his $55 price target.

Rising Cryptocurrency Prices

Coinbase shares are up 108% to above $69 this year alongside a broader rally in cryptocurrencies that earlier Thursday pushed bitcoin (BTC) past $25,000 for the first time since August.

Growing Regulatory Concerns

With Coinbase’s upcoming Q4 earnings and growing regulatory concerns, Brendler suggests now is a good time to take some money off the table, even as he remains bullish on the stock over the longer term.

Q4 Earnings Worry

In addition to recent regulatory concerns, there is also worry about Coinbase’s earnings report due Feb. 21, which is expected to show weakness in assets under management and interest income.

Price Target Adjusted

< p >Alongside the downgrade, Brendler boosted his price target on COIN to $60 from $55.< / p >

Crypto Banking Problem: Regulators Keep Digital Assets Out of US Banking System

• U.S. Regulators are trying to keep crypto assets away from banks and the traditional financial system.
• The Federal Reserve Board recently rejected a crypto-focused Custodia Bank’s application for membership.
• The Biden Administration has urged Congress to step up its efforts in regulating the crypto industry and avoid allowing mainstream institutions to invest in cryptocurrency markets.

Crypto’s Banking Problem: Industry Needs Access but US Regulators Keep Digital Assets at Bay

Regulatory Actions Aiming to Ring-fence Crypto from U.S. Banking System

Federal banking regulators seem to have free rein over crypto’s U.S. destiny – and they’re using their power to push it out of banking. Several recent regulatory actions – including the Federal Reserve Board’s (FRB) January decision to reject crypto-focused Custodia Bank’s application for membership – indicate federal regulators are coordinating on policy that aims to ring-fence crypto from the broader U.S. banking system, experts say.

The FRB Rejects Custodia’s Membership Application

The FRB’s rejection of Custodia’s membership application came hours after the Biden administration put out a statement urging Congress to “step up its efforts” to regulate the crypto industry and, when crafting new legislation, avoid “greenlighting mainstream institutions … to dive headlong into cryptocurrency markets,” which the statement warned would be a “grave mistake” that “deepens ties between cryptocurrencies and the broader financial system.” Shortly after Custodia’s membership application was denied, the Federal Reserve Bank of Kansas City dealt another blow to the crypto bank, denying its long-pending application for a master account.

The White House Urges Stricter Regulations on Crypto Industry

Less than two weeks after Custodia’s double-whammy rejections and the White House’s warning against crypto contagion, fresh rumors about more crypto banking crackdowns have begun to circulate among insiders in Washington D.C., signaling further clampdowns are likely on their way as regulators continue their concerted effort against digital assets gaining access into U.S.-regulated financial systems..

Crypto’s Fate in Hands of Regulators

Crypto can’t become what many of its proponents want it to be without banks, but U.S regulators are circling wagons around banking system they oversee which is only getting wider as Federal Reserve and other agencies turn away firms trying link with traditional financial system..


In conclusion, it is evident that US regulators are determined not allow any type of digital asset access into its regulated banking system due its fear of contagion risk posed by cryptocurrency investments . As such , it is likely that current trend will continue unless there is some sort of legislative or policy changes that could potentially reverse this situation .

Make DMV More Efficient With Blockchain: Oxhead Alpha Uses Tezos

• Oxhead Alpha is partnering with California’s DMV to use the Tezos blockchain to modernize vehicle titling solutions.
• Andrew Smith of Oxhead Alpha explains the choice behind Tezos, referencing the blockchain’s governance structure.
• Paper car titles will be reflected as digital assets on-chain via the Tezos blockchain.

Oxhead Alpha Partnership with California’s DMV

Oxhead Alpha is partnering with California’s DMV to use the Tezos blockchain to modernize vehicle titling solutions. The aim is to make a “very clear case of better, faster [and] cheaper” for citizens in the state. The paper car titles will be reflected as digital assets on-chain via the Tezos blockchain.

Choice Behind Tezos

The choice behind selecting Tezos was based on its governance structure and consensus algorithm which can reduce forking issues and create a robust security model. Andrew Smith of Oxhead Alpha discussed why they chose this particular blockchain in an interview with CoinDesk TV’s “First Mover” program.

Tezos Blockchain Advantages

Using the Tezos platform offers several advantages such as improved efficiency and cost savings for citizens in California when registering their vehicles; it also eliminates bureaucracy associated with traditional paper titling processes which are slow and prone to errors. Additionally, it provides a secure environment that allows users to manage their digital assets conveniently and safely without having to worry about vulnerabilities or double spending from malicious actors.

Tezos Governance Model

The use of on-chain governance also helps ensure that all changes made on-chain are done responsibly and securely, while allowing users more control over their transactions thanks to its self-amending nature which ensures that any changes made on-chain do not require hard forks or other protocols being changed manually by developers or miners respectively.


In conclusion, using the Tezos blockchain provides many benefits when it comes to modernizing vehicle titling solutions, especially in California where there are thousands of drivers who must register their cars each year. By providing an efficient and secure platform for managing these digital assets, users can be sure that their transactions are not vulnerable against outside attacks and manipulation from malicious actors while still enjoying cost savings compared to traditional paper titling processes.

Regulators Clamp Down on Crypto: Regulatory Clarity is Key

• Regulatory clarity has become a buzz phrase in the crypto industry, with companies wishing to offer value-creating products in a compliant manner.
• The past year of enforcement actions has shown that financial regulators are comfortable using existing rules to investigate and prosecute crime in crypto.
• Gareth Rhodes, a managing director at Pacific Street, formerly served as deputy superintendent and special counsel at the New York State Department of Financial Services, has offered his thoughts on the issue.

Regulatory clarity has become increasingly important in the cryptocurrency industry, with companies such as Nexo, Binance, Coinbase and Circle all expressing a desire to be able to offer value-creating products in a compliant manner. This is something that is not only important for the companies themselves, but also for the users of the products, who want to ensure that their investments are protected.

The past year of enforcement actions from financial regulators has demonstrated that the authorities are willing to use existing rules to investigate and prosecute criminal activity in the crypto space. This has included the U.S. Securities and Exchange Commission (SEC) taking legal action against a number of companies, such as the aforementioned Nexo, for alleged securities violations.

Gareth Rhodes, a managing director at Pacific Street, has offered his thoughts on the matter. Mr. Rhodes formerly served as deputy superintendent and special counsel at the New York State Department of Financial Services, and has a deep understanding of the regulations in the industry. He believes that while there are still some grey areas, the financial watchdogs have made it clear that they are willing to enforce the existing rules.

Mr. Rhodes also believes that the authorities are open to the development of new regulations to govern the crypto space, as long as they are designed to protect consumers and ensure that financial crime is prevented. He also believes that it is important for the industry to engage with regulators, so that both parties can work together to create a secure and stable environment for the industry.

Ultimately, the crypto industry is still in its infancy and regulatory clarity is something that is still evolving. However, with the enforcement actions of the past year, it is clear that the financial watchdogs have made their stance on the issue very clear. Companies must continue to work with regulators to ensure that they are compliant with the rules, and that they are offering secure and value-creating products to their users.

Genesis Global Files for Chapter 11 Bankruptcy: Implications for Crypto Lending

1. Genesis Global Holdco LLC, the holding company of crypto lender Genesis Global Capital, has filed for Chapter 11 bankruptcy protection.
2. Wilk Auslander LLP Partner Eric Snyder discussed the legal and industry implications of the filing.
3. It is currently unknown how much of a “haircut” Genesis’ creditors could suffer.

Genesis Global Holdco LLC, the holding company of crypto lender Genesis Global Capital, recently filed for Chapter 11 bankruptcy protection, creating uncertainty and implications for both the legal and industry sectors. Wilk Auslander LLP Partner Eric Snyder recently discussed these implications on CoinDesk TV’s “First Mover”, noting that it is currently unknown how much of a “haircut” Genesis’ creditors could suffer.

The filing of bankruptcy protection for three of Genesis’ crypto lending businesses has creditors worried about the potential losses they may face. Snyder noted that it may take a long time to figure out the assets and liabilities of Genesis, so creditors may have to wait to find out just how much they may lose. He also weighed in on Gemini CEO Cameron Winklevoss threatening to sue DCG CEO Barry Silbert over the repayment of a $900 million loan. DCG is the parent company of CoinDesk and Genesis.

Snyder explained that this case is unique in the sense that it is the first to involve a crypto lending business, and it has the potential to set a precedent for future cases involving cryptocurrency. He added that Chapter 11 bankruptcy protection offers Genesis an opportunity to reorganize its debt and assets in a way that may be more beneficial to the company and its creditors.

When it comes to cryptocurrency, the legal implications are often much more complicated than traditional debt and asset cases. Snyder noted that this case will likely require a complex analysis of the many different types of assets and debts that Genesis is dealing with, including cryptocurrency and fiat currency.

Overall, this case will be a learning experience for lawyers, financial institutions and creditors dealing with cryptocurrency. It will be interesting to see how it plays out, and if it does set a precedent for other cases involving cryptocurrency. As for Genesis and its creditors, it remains to be seen if the company can reorganize its debt and assets in a way that is beneficial for all parties involved.