Web3 with FTC - Fed Says NO, Sidechain gets a toolkit, Floor buys WGMI, & $70M for Core Scientific

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​ Tedd Huff - 002: Welcome to Fintech

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latest news and insights in the world of Web3, blockchain crypto, and Fintech.

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I'm Tedd Huff, and this is your daily dose of Web3 with FTC For

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February second twenty twenty three

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Today, we bring you updates on

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the Federal Reserve's decision on Custodia Bank's membership application,

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the launch of Cardano's Sidechain Toolkit, Floor Acquires NFT analytics

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platform WGMI dot i o, and Core Scientific plans to borrow $70 million.

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Our first story is

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about the U.S.

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Federal Reserve Board Denying Custodia Bank's Membership Application

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The U.S.

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Federal Reserve Board has denied Wyoming-based Custodia Bank's application

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to become a Federal Reserve member.

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According to the Fed, Custodia's crypto-focused business model needed

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to be more consistent with safe and sound banking practices, and cited its

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lack of Federal Deposit Insurance and insufficient risk framework as red flags.

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Founded by Wall Street veteran Caitlin Long, Custodia Bank, formerly Avanti

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Bank, aims to bridge the gap between traditional finance and crypto.

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With the passage of 13 crypto laws in Wyoming, the state has become a hub

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for crypto projects and companies.

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The Federal Reserve's decision shows that a state charter does not guarantee

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admission as a Federal Reserve member.

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Custodia Bank could be fighting a losing battle unless laws are

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refreshed to include crypto custodians.

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Custodia was surprised and disappointed with the Federal Reserve's decision,

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as they believe to have exceeded the regulation requirements

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governing traditional banks.

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This rejection is something that they will most likely continue to litigate.

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After a long awaited release Cardano Finally Launches Sidechain Toolkit

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Cardano, the proof-of-stake blockchain network, has finally

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launched its Sidechain Toolkit.

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Developed by Input Output Global, the toolkit offers a wealth of new

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possibilities for stakeholders, including enhanced revenue streams for

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Stake Pool Operators and delegators, as well as new platforms for

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innovation and custom-built solutions.

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Input Output Global expects the Sidechain Toolkit will create

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a wealth of new possibilities.

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From more revenue streams for Stake Pool Operators and delegators to

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new platforms for more innovation and custom-built solutions.

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With the aim of being the most-used blockchain protocol ahead of Ethereum,

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Cardano has paid serious attention to the consistent improvement

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and upgrading of its network.

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The Sidechain Toolkit allows developers to build an entirely new sidechain with

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its own consensus mechanism and algorithm.

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Floor, the startup behind the NFT portfolio tracking app, has made a

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big move to expand its offerings.

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They've acquired NFT analytics platform WGMI.io to enhance the app's

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capabilities and reach a wider audience.

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The acquisition will allow Floor to deliver a more complete experience for

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NFT collectors by integrating WGMI's analytics features into the platform.

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Floor CEO and co-founder Chris Maddern shared that the acquisition of WGMI.io

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provides an opportunity to add new features like trading analysis and trait

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pricing, where users can track demand for specific traits of NFT projects.

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In the long term, the aim is to present information and signals from the community

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to NFT collectors in a decentralized fashion, creating a hub for NFT owners.

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Despite the bear market conditions in the NFT market last year, Floor claims

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to have seen a 700% increase in its user base, with more than 10,000 active users

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and over 22,000 crypto wallets tracked.

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Floor also accounted for 8% of sales on the leading NFT marketplace,

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OpenSea, in December, pointing to a plugged-in audience of traders.

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Floor's larger vision is to become the go-to destination for NFT collectors,

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providing a one-stop hub for NFT owners to view their assets, track

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trends, receive project updates, and stay connected with the community.

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Floor has been steadily growing its user base, even during the NFT bear

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market, and aims to continue to provide the most comprehensive NFT tracking

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and analysis platform available.

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Our last story for today is.

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Bitcoin miner, Core Scientific, has agreed to borrow $70

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million from investment bank B.

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Riley.

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The loan will help the company replace an existing facility and

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keep it running as it goes through the Chapter 11 bankruptcy process.

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If the bankruptcy court approves, the loan will give the company up to 15 months

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of financial runway and flexibility.

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Core Scientific accounted for around 10% of the computing power on the

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Bitcoin network at the time of its bankruptcy filing in December.

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We'll keep a close eye on the progress of Core Scientific's

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request for loan approval.

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As the bitcoin mining industry continues to face challenges from declining crypto

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valuations and rising electricity costs, it will be interesting to see how this

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move affects the future of the company and the broader bitcoin mining industry.

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That's all the news for now, but stay tuned to Fintech Confidential for

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more news and insights on the world of Web3, Blockchain, crypto, and Fintech.

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access dot fintech confidential dot com.

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until next time; this is Tedd Huff signing off.