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DPoS networks work really well with current offline custody architecture, says Coinbase Custody executive

Priya

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Coinbase Custody exec says: DPoS networks work really well with current offline custody architecture
Source: Unsplash

Sam McIngvale, Head of Product for Coinbase Custody, spoke about the new service provided by the platform, Staking and Governance, in an interview with Laura Shin for Unchained Podcast.

The interview began with Sam McIngvale speaking about the reasons behind Coinbase’s decision to offer staking service. McIngvale stated that all products and services offered on Coinbase custody were based on client demand, adding that buzz for staking started in Q4 of last year. He said,



“We started to hear this steady drumbeat specifically from our client, but also in the industry at large about large investors wanting to actively participate in the network they want to participate in”

He further stated that this “drumbeat” was usually for staking and governance, in particular. However, sometimes it was also about other mechanisms. McIngvale stated that this made sense from an institutional perspective as they have large stakes in these networks and want to support, adding that staking and voting was one of the ways this could be achieved. He went on to state,

“[…] we started hearing the drumbeat at large but it really crystallized for us when a large clients, at mid-Q4 said, ‘hey, we really enjoy the partnership we have with you all, we’re big fans of the platform but you are not getting this particular crypto unless you support staking’.”

McIngvale stated that this was when they “truly” began their research into it, looking at the possible measures they could take. During this process, the team learned about Tezos and Cosmos, resulting in them concluding that they could actually engage with these networks and also serve clients according to their needs by stake and earn staking rewards by keeping funds offline.

“[…] I guess the epiphany for us was that Delegated Proof of Stake networks work really well with our current offline custody architecture and that was what really went off and we knew that there was a lot of client demand […] and that’s when we sort of realized we had to start building.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Altcoins

FLiK case: Utility tokens take another hit in case allegedly involving Rapper TI, claims prominent lawyer

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Source: Unsplash

Stephen Palley, a prominent lawyer at Anderson Kill, spoke out about the FLiK token case via his official Twitter handle. Notably, unlike most tokens in the space, FLiK made headlines because of its celebrity backing.

Towards the end of last year, it was reported that the US Rapper Clifford Joseph Harris Jr., who goes by the stage name T.I. and T.I.P., was sued for $5 million over the alleged failure of the token promoted by him and his partner, Ray Felton. The rapper was being sued by a group of 25 individuals who claimed that that they invested around $1.3 million in the tokens.

Additionally, there were allegations that the rapper used the raised money to increase the token’s value, following which the duo sold their holdings after the coin crashed. Other well-renowned celebrities such as Kevin Hart and Mark Cuban were also reportedly associated with this project.

On the recent developments surrounding the case, Stephen Palley stated,



“Utility tokens” take another hit in case allegedly involving rapper TI. Court says FLiK ICO tokens = securities under Howey Test, for motion to dismiss purposes. That they offered some functionality ≠ relevant given buyers’ expect of profits solely from efforts of others. 1/4″

Source: Twitter

Source: Twitter

Source: Twitter
The lawyer further stated that,”use of funds” was already determined by the defendants, “per the FLiK token whitepaper.” He went on to state that there was a time problem, adding that Federal Law rules that “unregistered sale” of security tokens were supposed to be reported within 12 months after the violation.

The lawyer concluded by tweeting,

“ps — form was never going to be exalted over substance, so none of this is a huge surprise. Also, this is a ruling on Rule 12(b)(6) motion to dismiss so the Court takes the allegations as true for purposes of ruling. The merits still have to be litigated.”





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