A Look at the Latest Crypto Market Trends and Innovations from Neal Mohan, Huobi Global, Paxos, and More - Web 3 With FTC for Thursday February 23rd 2023

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Welcome to Web3 with FTC by Fintech Confidential for

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Thursday February 23rd, 2023

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2023.

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"Get ready for some fresh and thrilling insights on the world of Web3,

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Crypto, Blockchain, NFTs, and Fintech world, right here on Web3 with FTC!

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No more stale, regurgitated stories, we've got the hottest

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and newest updates for you."

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Today we've got a jam-packed show, from Hong Kong's bid to become the crypto hub

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of Asia to YouTube's appointment of Neal Mohan as CEO and Web3 Technology advocate.

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We'll also be covering everything from the Bank for International

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Settlements' analysis of crypto investments to Zambia's pioneering

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move to test technology and pave the way for cryptocurrency regulations.

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Let's get started with today's Highlights!

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Neal Mohan's appointment as YouTube's CEO and Web3 Technology advocate

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has got the industry buzzing.

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With a focus on revolutionizing content creation, ownership, and distribution,

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YouTube is set to become the leader of the Metaverse, and we can't

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wait to see what the future holds."

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Google's agreement with Tezos to become a validator is a

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game-changer for Web3 applications.

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With access to Google Cloud specific features, developers can now build

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more innovative and secure apps on the Tezos network, setting the standard

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for Web3 development and growth."

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Hong Kong is vying to become the crypto hub of Asia and Huobi Global, led by

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Justin Sun, is seeking to jump on the bandwagon by applying for a crypto trading

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license and setting up a local exchange.

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With Hong Kong regulators easing crypto rules, Huobi Global is

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positioning itself as a trusted and secure platform for investors in Asia

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who want to join the crypto market.

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The Bank for International Settlements' analysis reveals the inherent deception

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in crypto investments, as retail investors chasing the market's highs can lose up to

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80% of their investments, highlighting the need for a sustainable investment model

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to protect investors and their funds.

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Focusing on long-term growth and stability with a clear understanding

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and appreciation of potential risks is essential to balance crypto investments.

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Coinbase weathered the ups and downs of the cryptocurrency market throughout

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2021 with preparation and flexibility, including targeting attractive users

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and implementing cost-saving strategies.

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Their efforts paid off, resulting in a fourth-quarter revenue that

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beat expectations, illustrating the importance of resilience and

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agility in times of uncertainty.

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The Illinois proposed bill to ban smart contracts from having immutable records

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on the blockchain is unworkable, bad public policy, and runs counter to

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the core principles of the technology.

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It threatens to stifle innovation, reduce confidence in decentralized

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networks, and undermine law enforcement's ability to keep accurate records

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of blockchain-based transactions.

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Paxos's stablecoin, BUSD, has been told by the S E C that it should

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have been registered as a security, potentially requiring Paxos to

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submit registration documents to the securities and Exchange Commission.

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While this move could enhance transparency and trust in the digital asset space,

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it also highlights the need for businesses to navigate the changing

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regulatory landscape and be on the lookout for potential security risks.

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Zambia is taking the lead in Africa's adoption of the digital economy, as

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the government tests technology to pave the way for cryptocurrency regulations.

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This move could revolutionize peer-to-peer transactions, promote economic

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development, and provide financial security, while demonstrating Africa's

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commitment to technology and innovation.

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The recent resignation of Composable Finance's CTO, Karel Kubat, amid

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allegations of legal violations involving the company's CEO, Ciaran

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Gaffney, has created a tense situation.

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While Gaffney denies the accusations, the legal and ethical considerations of

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the situation could have a significant impact on the future of the company.

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Solana Spaces' innovative approach to onboarding the world to Solana

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may have come to an end with the closure of their flagship stores, but

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it was a successful experiment that introduced thousands of people to

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the world of blockchain and provided physical infrastructure for the Solana

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network to support other businesses.

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The lessons learned from this experience will no doubt be

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applied to future projects, moving the web3 ecosystem forward.

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Those are the highlights for February 22, 2023 so stay here for the rest

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of the story, on Web3 with FTC."

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Let's jump back in to todays stories starting with our first stories on

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the adoption of Web3 by corporations is changing the game and enabling

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developers to build more innovative and secure apps, setting the standard

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for Web3 development and growth.

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Recently, YouTube made the news official, announcing Mohan as

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their new Chief Product Officer and Web3 Technology advocate.

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The tech giant stated, “We are confident in Neal’s ability to lead us into a

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new era of innovation and technology, with a strong focus on the emerging

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Web3 and Metaverse technology.”2

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Mohan has big plans for YouTube, and has declared ambitious goals

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to integrate Web3, blockchain and metaverse technology into the platform.

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As he said in his initial press release,

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“It is time to revolutionize digital content creation, ownership and

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distribution and to empower artists by focusing on new technologies and

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business models in the digital space.

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My team and I are working to deliver on YouTube’s ambitious vision of a

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metaverse that blurs the boundaries of the real and virtual worlds.”

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This is a major turning point for YouTube, which has been innovatively

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integrating Web3 technology into its existing platform for a few years now.

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The list of Web3-driven features that YouTube has already started to

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integrate encompasses Blockchain IDs, NFTs, metaverse content and streaming

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services for video game developers.

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The first step that YouTube has taken with Mohan on board is the formalization

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of their virtual world initiative, which was first announced in June.

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This initiative is designed to bring communities of creators,

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gamers, and general users into a metaverse-style 3D environment,

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where users can create and manage their own digital world and presence.

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The virtual world initiative brings with it a host of new possibilities not just

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for YouTube, but for other companies which plan to use Web3 technology in their

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media and content creation businesses.

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YouTube is open to collaborating with app developers and content

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creators, who can create virtual worlds powered by the YouTube platform and

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promote them on their own channels.6

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Mohan is also looking at developing NFTs, which can be used by content

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creators to store digital content, as well as monetize their work.

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The YouTube team has been working closely with the developers of the Cryptovoxels

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platform to create NFTs that could be used to grant access to special

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content, or even grant ownership of digital objects within the metaverse.

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As YouTube goes forward on the NFT front, the team is keen to ensure user safety

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and identify potential abuse cases.

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The team is also talking to game developers on how they could

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use their game worlds to act as incentives for content creators

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on their platform, or even create monetization opportunities using NFTs.

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It is clear that YouTube is now looking to be the leading player in the Web3 space,

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and they believe that having Mohan as their new CEO is the best way forward.

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He is an innovative and experienced technologist who understands the potential

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of this new technology, and has already had a proven track record of success.

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Introducing Web3 and metaverse technology is proving to be a savvy

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move for YouTube, as it's currently one of the most difficult and

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misunderstood technologies to use.

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Mohan is the perfect person to bridge the gap between traditional

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and modern technology, spurring innovation and transformation in

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the way content is produced, owned, distributed and consumed via the Web.10

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Neal Mohan’s appointment as YouTube’s CEO and being a Web3 Technology

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advocate is a sign of things to come.

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With his vision of web3 and metaverse technology, he hopes to

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revolutionize content creation, ownership and distribution to

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empower artists around the world.

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Thanks to Mohan’s extensive experience in this space, YouTube is on

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track to become the leader of the Metaverse, and will no doubt be at

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the forefront of Web3 technology.

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Google Cloud continues to make waves in the cryptocurrency world by

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announcing their agreement to become a validator on the Tezos network.

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This move is seen as a another major step forward in the development

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of Web3 applications and will undoubtedly have an impact on the

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way people use blockchain technology.

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With this agreement, Google Cloud customers will now be able

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to deploy Tezos nodes and build applications on the network.

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So, what Does the New Agreement Mean?

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The new agreement is an indication of Google’s belief that Tezos is the

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blockchain of choice for businesses looking to develop Web3 applications

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that support a wide variety of use cases.

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It also demonstrates the commitment of Google Cloud to the development

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and growth of the Tezos network.

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This agreement will expand the number of validators on the network,

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making it easier for developers to build and deploy applications.

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It also means that Google Cloud customers will have access to Google

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Cloud specific features when deploying and managing their applications.

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You might be asking; Why is this Important for Web3?

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The integration of Google Cloud with the Tezos network signifies

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an important step forward in the development of Web3 applications.

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We use Web3 as a term to describe the next generation of decentralized,

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innovative applications that are supported by blockchain technology.

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The arrival of Google Cloud onto the Tezos network enables developers

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to build apps more securely and efficiently than ever before with robust

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tools that allows them to target a large and established customer base.

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It will be interesting to see how this and the Solana partnerships with the

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Google Cloud team play out One thing seems to be clear, by adding the Tezos

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network, Google works towards setting the standard for Web3 development.

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Developers can take advantage of Google Cloud's expertise and resources to create

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innovative and secure applications.

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This agreement will certainly provide a major boost to the development

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of Web3 applications and the growth of the web3 ecosystem as a whole.

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Next we tackle some of the stories revolving around the Crypto Market and

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Regulations highlighting the need for businesses to navigate the changing

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regulatory landscape and be on the lookout for potential security risks.

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Justin Sun's Huobi Global Seeks Crypto Trading License and Plans to Set up Local

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Exchange in Hong Kong as the regulators are easing crypto rules, and market

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players are making moves to establish the region as the crypto hub of Asia.

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In this latest development, Justin Sun's Huobi Global has applied for a

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crypto trading license and plans to set up a local exchange in Hong Kong.

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The new exchange will comply with local regulations, cater to institutional

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investors and high-net individuals, and position itself as a trusted and

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secure platform for investors in Asia willing to join the crypto market.

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The Securities and Futures Commission (SFC) of Hong Kong recently released

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a consultation paper that notes retail investors could trade larger crypto

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coins on licensed crypto exchanges.

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This move would allow exchanges to provide safeguards such as risk

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profiles, knowledge tests, and reasonable limits on exposure.

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Huobi Global's announcement of its application for a crypto trading

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license comes just an hour after the Bloomberg report that Hong Kong

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regulators are planning to allow retail investors to trade larger crypto coins.

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While the agency hasn't explicitly mentioned which crypto coins retail

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players could trade, it has said that the objective is to allow retail

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trading in the new licensing regime for crypto exchanges due on June 1.

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An SFC spokesperson said that two of the largest crypto assets are likely

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to be listed on Hong Kong platforms.

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Justin Sun, the founder of Tron and CEO of BitTorrent, has written that

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with the new license, Huobi Global will be able to expand its services

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and offerings to customers in Hong Kong, providing a wider range of

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crypto trading and investment options.

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This is great news for traders and investors who are looking for a

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trusted and reliable platform to buy, sell, and store digital assets.

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Huobi Global is positioning itself as a trusted and secure platform for investors

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in Asia willing to join the crypto market.

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The new exchange from Huobi will comply with all local regulations

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while offering a range of trading pairs and services to customers.

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The exchange will cater to offering trading services for

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institutional investors as well as high-net individuals in Hong Kong.

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Other traditional market players are also seeking licensing for

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crypto customers in Hong Kong.

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The move by Justin Sun's Huobi Global to apply for a crypto trading license

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in Hong Kong and set up a local exchange comes at a time when Hong Kong

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regulators are easing crypto rules.

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The move will expand Huobi Global's services and offerings to customers in

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Hong Kong, providing a wider range of crypto trading and investment options.

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The exchange will cater to offering trading services for institutional

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investors as well as high-net individuals in Hong Kong, positioning itself as a

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trusted and secure platform for investors in Asia willing to join the crypto market.

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The BIS, known as Bank for International Settlements, compared the seven years

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prior to 2022 to the period since then, showing that retail investors chasing

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the crypto market’s highs in some cases lost up to 80% of their investments.

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Cryptocurrency has caused waves in the financial markets for over

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a decade, but what hasn't been discussed as much is the deception

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inherent in this new asset class.

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Crypto investments – and even the most reliable ones – could almost never

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guarantee the financial returns that many investors have been promised.

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As such, it’s not surprising to learn that retail investors have

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collectively lost a huge portion of their capital to crypto investments.

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Just like stocks and other monetary vehicles.

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By diving into the data from seven years prior to 2022, retail investors

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chasing bitcoin's stratospheric highs saw some significant losses.

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According to data from the Bank for International Settlements,

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these losses sometimes were as high as 80% when purchasing at

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the all time highs of the market.

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The analysis also found that the majority of retail investors in the short term were

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losing money overall, regardless of the price performance of their chosen asset.

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The patterns of risky trading behavior can be easily spotted.

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Investors would often buy into a cryptocurrency, expecting quick gains and

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overly relying on wishful thinking, only to find out that the asset was no longer

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profitable and may even have declined.

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It is important to note that we should always be reinforcing

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a sustainable investing model.

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Financial institutions, investors and regulators are looking for ways to

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protect retail investors and ensure that their funds remain secure even

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through the volatility of the market.

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The report suggests a low risk approach of focusing on encouraging

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financial institutions to direct clients to sustainable investments

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that are focused on traditional long-term perceived stabile

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growth assets with less volatility.

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When you look at it the, pursuit of crypto gains through leverage

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has been a dangerous game.

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While we all need to protect retail investors from becoming victims of

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the devastating effects of crypto fraud, we also have to remember that

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a long-term investment strategy is the key to growing one's capital,

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both digitally and off-line.

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The latest analysis from the Bank for International Settlements communicates

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their position on how they view crypto today as a risky investment and that

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retail investors should lean toward and more traditionally stable investments.

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It is never good when one leverages themselves to the

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hilt in a world of physical or digital assets, is not the answer.

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Instead, focusing on long-term growth and stability is a

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much better course of action.

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Crypto investments can be beneficial, but only when they are balanced

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with a clear understanding and appreciation of the potential risks.

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By having such an understanding is important for retail investors to protect

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their funds, both digitally and off-line.

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Cryptocurrency exchange Coinbase has certainly endured

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a rollercoaster of a year.

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Despite the core elements of the industry remaining strong, the

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cryptocurrency market endured several swings throughout 2022.

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In a time of market volatility, Coinbase's fourth-quarter revenue beat

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estimates, with revenue of $604.9 million.

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Despite a 57% drop in year-on-year revenue, the firm and the industry

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have shown resilience and long-term fundamentals remain strong.

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Coinbase has reported revenue of 604.9 million dollars for the fourth

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quarter of 2022, beating FactSet estimates of 589 million dollars.

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Although full year revenue came in 57% lower than 2021 levels, at 3.1 billion

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dollars from over 7.3 billion dollars, the exchange has proven resilient in a market

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that has seen major shocks to the system.

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In a call with The Block, Coinbase VP of Investor Relations Anil Gupta

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attributed the drop in trading volumes to retail holders "stepping back and

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Hodl-ing" as well as lower volatility.

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Coinbase's adjusted EeBidDa for the fourth quarter came in at negative

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$124 million, in line with estimates, with the full year's adjusted EeBidDa

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of negative 371 million dollars , down from over 4 billion dollars in 2021.

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Although blockchain rewards, mostly made up of staking revenue, came in at 62.4

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million dollars, slightly below estimates of 63 million dollars, staking based

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revenue increased to 275.5 million dollars in 2022 from 223 million idollarsn 2021.

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Shares in Coin fluctuated in after-hours trading before

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rising by 2.7% on TradingView.

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The company discussed its outlook for the year, stating that it is prepared to

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manage the business through a range of transaction revenue scenarios in 2023,

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including possible increases, decreases, or stabilization of crypto market

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capitalization and crypto asset volatility compared to levels at the end of 2022.

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Coinbase's fourth-quarter revenue beating estimates highlights the resilience of

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the firm and the industry as a whole.

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The drop in year-on-year revenue indicates that the market is still

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experiencing volatility, but the exchange's ability to manage the

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business through a range of scenarios is a positive sign for the future.

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Although blockchain rewards were slightly below estimates, staking based revenue

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increased from the previous year, showing a positive trend for Coinbase.

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The company's outlook for the year shows that they are prepared for

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whatever the market may bring.

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Recently, a Senate Bill in the Illinois legislature was introduced to ban smart

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contracts from having immutable records of stored data on the blockchain.

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While this bill was well-intentioned, it is unworkable and could lead

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to a chilling effect if enacted.

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Today we will outline why this proposed legislation is bad public policy

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and what the consequences could be.

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The proposed bill was intended to create a safeguard to prevent bad

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actors from using the immutable nature of the blockchain to their advantage.

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However, Drew Hinkes, a Florida-based lawyer specializing in blockchain,

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described the bill as “the most unworkable state law” related to blockchain and

: 00:20:19

cryptocurrency that he has ever seen.

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In its current form, the bill would essentially ban the entire concept

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of blockchain immutability by preventing smart contracts from having

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immutable records of stored data.

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The goal of preventing immutable data from being kept on the blockchain

: 00:20:35

is misguided, as the technology simply cannot operate without it.

: 00:20:39

By eliminating immutable data, decentralized networks would be forced

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to rely on a centralized system for data storage, which runs counter to

: 00:20:47

the basic principles that make the blockchain so secure and reliable.

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Immutability is a vital aspect of decentralized network security,

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as it provides trust and assurance that all data stored on the

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blockchain is safe and secure.

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Furthermore, these immutable records are essential for government and

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law enforcement, as they ensure that records of all transactions are securely

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stored, making it easier to track and trace illicit activities, such

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as money laundering and terrorism.

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Finally, the proposed legislation threatens to undermine the role of

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regulators looking to capitalize on the guaranteed transparency of the

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blockchain for fraud prevention and to increase financial transparency.

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By prohibiting immutable records, the Illinois legislature would be sending

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a chilling message to innovators and entrepreneurs who view the blockchain as

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a key asset to help them stay competitive in the increasingly complex digital world.

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Wrapping this crazy story up.

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The Illinois legislature has proposed a bill that would ban smart contracts from

: 00:21:47

having immutable records of stored data on the blockchain is unworkable and counter

: 00:21:52

to the core principles of the technology.

: 00:21:54

Not only is it facing serious opposition from legal experts, but it runs the risk

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of stifling innovation, undermining the confidence in decentralized networks,

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and reducing the ability of law enforcement to keep an accurate record

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of all blockchain-based transactions.

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Ultimately, this proposed ban is bad public policy, and by rejecting it,

: 00:22:14

we can ensure that the blockchain remains a safe and secure tool for

: 00:22:18

those looking for a secure, immutable, and transparent digital asset.

: 00:22:23

Businesses have long looked for innovative ways to use—and secure—emerging

: 00:22:27

technologies, and the demand for cryptocurrency-based products and

: 00:22:31

services has never been higher.

: 00:22:33

Paxos, the firm behind some of the Binance stablecoins, recently found

: 00:22:37

itself in the spotlight after the U.S.

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Securities and Exchange Commission (SEC) told the company it should have

: 00:22:43

registered the token as a security.

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Let’s find out what this could mean for both Paxos and the broader

: 00:22:48

industry, and explore how the changing regulatory landscape might affect

: 00:22:52

the future of digital currency.

: 00:22:54

With the global cryptocurrency market estimated to be worth $1.2 trillion,2

: 00:23:00

it’s no surprise that the U.S.

: 00:23:01

securities and exchange commission has increasingly been monitoring

: 00:23:05

the use of digital currencies and digital asset offerings.

: 00:23:09

According to an internal email from Paxos CEO Charles Cascarilla, the

: 00:23:13

regulator recently notified Paxos that its stablecoin, Binance U S

: 00:23:18

D also referred to as BUSD, should have been registered as a security.

: 00:23:22

This means that Paxos must submit registration documents to the S

: 00:23:26

E C to sell and issue BUSD, or otherwise face potential legal action.

: 00:23:31

But what does registering BUSD as a security actually mean?

: 00:23:35

Well, According to the S E C, securities are “investment contracts” that

: 00:23:39

enable “ownership rights in assets.

: 00:23:42

This can mean anything from stocks and bonds to stocks, notes, investments

: 00:23:46

contracts, and even digital assets.

: 00:23:48

By registering B U S D as a security, the S E C is essentially allowing companies

: 00:23:53

to offer products and services backed by digital assets; an important distinction

: 00:23:58

given how digital assets are typically not registered like stocks and bonds.

: 00:24:03

The news of Paxos’s potential security registration could have implications

: 00:24:07

not only for the future of the stablecoin but for the broader industry.

: 00:24:11

Increasing regulations could lead to greater investor confidence, as

: 00:24:15

they know they are purchasing and trading digital assets in compliance

: 00:24:19

with US laws and regulations.

: 00:24:21

It could also enhance transparency and trust, both of which are the

: 00:24:25

cornerstone of web3 and digital assets

: 00:24:27

. As, this move by the regulator

: 00:24:31

the use of digital currencies.

: 00:24:33

As major financial institutions and companies increasingly enter the

: 00:24:37

space, a trusted regulatory body helps ensure that cryptocurrency is used as

: 00:24:42

a vehicle for responsible investments.

: 00:24:44

Additionally, as more companies jump on board, it could help to foster competition

: 00:24:49

and ultimately, drive innovation forward.

: 00:24:51

We will continue to see digital assets like cryptocurrencies become more

: 00:24:55

widespread, the regulations surrounding them are likely to continue to evolve.

: 00:25:00

With Paxos’s potential registration as a security is a prime example of how

: 00:25:05

businesses must navigate the changing regulatory landscape and be on the

: 00:25:09

lookout for potential security risks.

: 00:25:11

By working with the U.S.

: 00:25:13

Securities and Exchange Commission on establishing compliance , Paxos and

: 00:25:17

other businesses have the opportunity to foster investor confidence

: 00:25:21

and help to ensure that digital assets are made available safely.

: 00:25:26

As the industry continues to evolve and change,  Global Innovation and

: 00:25:30

Ethics considerations are at the forefront of the digital assest industry.

: 00:25:34

Zambia's decision to embrace the digital economy through cryptocurrency regulation

: 00:25:39

is a bold move that could revolutionize the region's peer-to-peer transactions

: 00:25:43

and promote economic development.

: 00:25:45

The African continent has taken the first steps to establish a crypto technology

: 00:25:50

hub with Zambia at the forefront.

: 00:25:52

The government has announced testing of technology that will pave the way for

: 00:25:56

cryptocurrency regulations, demonstrating their commitment to remain at the

: 00:26:00

forefront of technology and innovation.

: 00:26:03

This is a huge first step to showing the world that Africa is serious about

: 00:26:07

adapting to the digital economy as a legitimate source of value and currency.

: 00:26:11

Zambia’s Minister of Finance, Ngandu Mangaliso reportedly said, “We are

: 00:26:16

ready to join in the efforts and enhance legislation and encourage the

: 00:26:20

development of cryptocurrency innovation”.

: 00:26:22

He has been praised for his forward thinking by many in the sector who,

: 00:26:26

in a continent where infrastructure and banking services are woefully

: 00:26:30

inadequate, the use of cryptocurrencies could prove revolutionary.

: 00:26:34

It is no secret that Zambia, like other African countries, has had to face

: 00:26:38

its fair share of economic problems.

: 00:26:40

From abysmally low unemployment rates to extreme poverty, the

: 00:26:44

introduction of a technology like cryptocurrencies to Zambia could be

: 00:26:48

the silver bullet to end these woes.

: 00:26:50

Cryptocurrency provides an efficient and secure way to simplify peer-to-peer

: 00:26:54

transactions and to send digital money, with fewer overheads.

: 00:26:58

The technology enables users to digitally sign their transactions

: 00:27:02

instead of using the traditional paper and ink method of signing.

: 00:27:05

This reduces the number of transactions costs involving the exchange of

: 00:27:10

currency, whilst expanding the cost of sending the money globally.

: 00:27:14

In addition, cryptocurrencies allow for transactions to take

: 00:27:17

place swiftly and securely.

: 00:27:19

Blockchain technology, the core of virtual currency Bitcoin, makes

: 00:27:23

transactions traceable and detectible.

: 00:27:25

This removes the possibility of fraud as every transaction is

: 00:27:29

cryptographically secure as it is monitored and recorded in the blockchain.

: 00:27:33

As a result, crypto users can trust that their transactions

: 00:27:37

are truly anonymous and private.

: 00:27:39

The move to support cryptocurrency in Zambia follows similar moves in South

: 00:27:44

Africa, Kenya, Rwanda and Uganda – all of which recognize the power of virtual

: 00:27:48

currency and the opportunities it brings.

: 00:27:51

The embrace of cryptocurrencies could simultaneously promote economic

: 00:27:55

development and financial inclusion, while also providing financial security.

: 00:28:00

The continent is leaping forward thanks to Zambia's bold decision to

: 00:28:04

embrace the digital economy through cryptocurrency regulation is a promising

: 00:28:08

sign for the future of Africa, and a welcome sign for the crypto sector.

: 00:28:12

It shows that the government is committed to remaining at the forefront

: 00:28:15

of technology and innovation, and that it is fully aware of the potential

: 00:28:19

blockchain technology and cryptocurrencies have to help turn the economy around.

: 00:28:24

Through this move, Zambia will provide its citizens access to the global digital

: 00:28:29

economy, and just maybe, open the door for other African nations to follow suit

: 00:28:34

and benefit from this digital revolution.

: 00:28:37

The recent allegations and subsequent resignation at Composable Finance

: 00:28:41

highlight the ethical considerations involved in blockchain technology.

: 00:28:45

Allegations have surfaced that Composable and its CEO, Ciaran

: 00:28:49

Gaffney, had violated numerous legal regulations while operating the company.

: 00:28:54

The recent news that the CTO of Composable Finance, Karel Kubat,

: 00:28:58

resigned from the DeeFi-focused infrastructure firm amid allegations of

: 00:29:02

legal violations involving the company’s CEO, Ciaran Gaffney, has been met with

: 00:29:07

intense scrutiny and disagreement.

: 00:29:09

Kubat has accused Gaffney of knowingly violating regulations in a March 2020

: 00:29:14

Deefi campaign, while Gaffney has maintained that any issues were related to

: 00:29:18

a compliance matter and not a legal one.

: 00:29:21

We will explore the backgrounds of both positions, presenting the evidence

: 00:29:25

from both sides and taking a deep dive into the ethical considerations at

: 00:29:29

play in order to help inform you of the situation and draw your own conclusions.

: 00:29:33

Karel Kubat levied allegations of legal violations against Gaffney after

: 00:29:38

stepping down from Composable Finance.

: 00:29:40

In a Feb.

: 00:29:41

20th in a Twitter post, accused Gaffney of knowingly violating regulations.

: 00:29:46

"When our temporary legal counsel recommended that Composable Finance

: 00:29:50

use an unregistered broker-dealer for our $150,000 Defi campaign

: 00:29:55

launch - rather than an S E C -regulated one - Gaffney chose to

: 00:29:59

ignore their advice," ; Kubat wrote.

: 00:30:01

This accusation that Gaffney knowingly violated regulations related to the

: 00:30:05

company’s $150,000 Deefi campaign launch.

: 00:30:09

According to Kubat, Composable was recommended by their legal counsel

: 00:30:13

to use an unregistered broker-dealer instead of one regulated by the

: 00:30:17

Securities and Exchange Commission (SEC).

: 00:30:19

Kubat has refused to back down from his claims, asserting that Gaffney knew the

: 00:30:23

regulations and chose to ignore them.

: 00:30:26

Gaffney’s Response has been to vehemently denying Kubat’s accusations,

: 00:30:30

maintaining that any perceived violations were related to a compliance

: 00:30:34

issue rather than legal ones.

: 00:30:35

In a statement released on Feb.

: 00:30:37

20th, Gaffney noted that Composable had directly reported the incident to

: 00:30:41

the S E C as soon as they had become aware of it, and had taken steps

: 00:30:45

to ensure their current compliance with the applicable regulations.

: 00:30:49

He has insisted that Kubat’s accusations are “baseless” and “unsubstantiated”.

: 00:30:54

The main legal considerations at play in this situation have to do with

: 00:30:58

whether or not Composable actually violated any regulations when conducting

: 00:31:02

the 150,000 dollar Deefi campaign.

: 00:31:06

If they did, then the S E C may take action and impose penalties.

: 00:31:09

On the other hand, if they were not in violation of any laws, then Gaffney

: 00:31:13

will be cleared of any wrongdoing.

: 00:31:15

The legal considerations also go beyond just the laws themselves.

: 00:31:19

It is possible that Gaffney and Kubat may soon be in a situation where they are both

: 00:31:24

taking legal action against one another.

: 00:31:26

If Gaffney believes Kubat’s claims to be untrue, then he may

: 00:31:30

take legal action against him.

: 00:31:31

Kubat may respond in kind if he believes that Gaffney did

: 00:31:35

actually violate regulations.

: 00:31:37

This is going to be something to watch and see how The accusations levied against

: 00:31:41

Ciaran Gaffney, the CEO of Composable Finance, and the subsequent response

: 00:31:45

from both parties will bring forward some important ethical considerations.

: 00:31:50

There’s no denying that the potential legal repercussions of the incident

: 00:31:53

could have a significant impact on the company’s future, regardless of who is

: 00:31:57

ultimately proven to be in the right.

: 00:32:00

For our last story of the day Solana Spaces' experimental approach to

: 00:32:04

onboarding the world to Solana provided valuable lessons that will shape

: 00:32:08

future projects in the Web3 ecosystem.

: 00:32:11

Solana Spaces launched seven months ago with a bold ambition – to

: 00:32:15

onboard the world to Solana.

: 00:32:17

But with ambitious dreams come risky endeavors, and today that

: 00:32:20

daring experiment comes to a close.

: 00:32:22

On February 21st , Solana announced the closure of their flagship

: 00:32:27

stores in New York City and Miami.

: 00:32:29

It was a brave move that resulted in some big successes and valuable lessons.

: 00:32:33

When the Solana Spaces rental shops opened in both cities last year, it was designed

: 00:32:38

to show users an immersive experience with the Solana crypto ecosystem.

: 00:32:43

The point was to educate the masses on a technology that is often

: 00:32:46

seen as too complex or alien.

: 00:32:49

To do this, the stores turned a ledger into a library, an asset into art

: 00:32:53

and a blockchain into a bookstore.

: 00:32:55

Solana CEO Anatoliy Knyazev admitted that the footprint of the stores was too large

: 00:33:00

for the short amount of time they were aiming for: “We aimed to onboard more

: 00:33:03

users over this period, but the reality is that we weren’t able to meet our targets.”

: 00:33:08

Knyazev stressed that the experiment was part of the company’s efforts to

: 00:33:12

onboard more people onto Solana, and that the goal wasn’t just to make a buck.

: 00:33:16

While it’s true the flagship stores didn’t draw in as many people as

: 00:33:20

anticipated, it’s also worth noting that there were some big successes.

: 00:33:24

The flagship stores educated and connected thousands of people to the

: 00:33:28

Solana network, introducing them to a revolutionary new technology that has

: 00:33:32

been transforming the world of money, art, and technology over the past decade.

: 00:33:37

Knyazev added, “The response we got from the market was overwhelming

: 00:33:41

– people were excited to learn more and be part of the Solana community.

: 00:33:44

We’ll be taking what we learned and applying it to different

: 00:33:47

projects we’re working on and are optimistic about the future.”

: 00:33:51

The experience also resulted in some much-needed physical infrastructure for

: 00:33:55

the Solana network which can be used to support and promote other businesses,

: 00:34:00

including by catering for payment for goods and services with Sole tokens.

: 00:34:04

It is great to see that Solana Spaces pushed the boundaries of

: 00:34:07

ambitious innovation, designing an immersive experience to bring

: 00:34:11

users into the Solana network.

: 00:34:13

The initial targets they set out to achieve may not have been

: 00:34:16

accomplished, but the experiment was successful in other ways.

: 00:34:20

It introduced thousands of people to the concept of blockchain, how it works and

: 00:34:24

how it powers the Solana network, and it provided physical infrastructure for

: 00:34:29

the Solana network that can be used to support and promote other businesses.

: 00:34:33

The journey of Solana Space may have reached its final destination

: 00:34:37

temporarily, but this is certainly not the end of the road.

: 00:34:40

The lessons learned from the Solana Spaces experience will no doubt be

: 00:34:44

applied to better shape future projects and move the web3 ecosystem forward.

: 00:34:50

As, we wrap up today's episode of Web3 with FTC by Fintech Confidential.

: 00:34:55

Today we've covered some of the biggest stories that are shaking up the Web3

: 00:34:59

world and what they mean for you.

: 00:35:01

Today we talked about, the adoption of Web3 by corporations is rapidly

: 00:35:05

changing the game, with Neal Mohan leading YouTube's mission to become

: 00:35:09

the leader of the Metaverse and Google Cloud integrating with Tezos to set

: 00:35:13

the standard for Web3 development.

: 00:35:15

The cryptocurrency market is full of surprises, with Coinbase

: 00:35:19

smashing Q4 revenue expectations and Paxos's misclassification of

: 00:35:23

BUSD as a non-security emphasizing the need for businesses to navigate

: 00:35:28

the changing regulatory landscape.

: 00:35:30

Finally, ethical considerations and innovation are at the forefront of

: 00:35:34

the industry, highlighted by Zambia's bold decision to embrace the digital

: 00:35:38

economy, the recent allegations and resignation at Composable Finance,

: 00:35:42

and the valuable lessons learned from Solana Spaces' experimental approach to

: 00:35:47

onboarding users to the Solana network.

: 00:35:49

The future of the Web3 ecosystem is bright, and we

: 00:35:52

can't wait to see what's next.

: 00:35:54

Thanks for tuning into “Web3 with FTC”, where we cover what’s behind the

: 00:35:59

disruptive and innovative world of Web3, Blockchain, Crypto, NFTs and Fintech.

: 00:36:04

And remember to follow us on our Telegram Channel, Linkedin, Facebook,

: 00:36:09

and Instagram, and sign up for the latest news delivered straight to your inbox at

: 00:36:13

access dot fintech confidential dot com.

: 00:36:15

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Cryptocurrencies are highly volatile financial assets, so research and