Is the Foundation using Coinbase for payments to staff or otherwise. If so, for what all and why? Can they not use a DEX rather? Coinbase itself wants to possibly leave the US because of the hostile regulatory environment in the US with the Sec that now seems to be accusing Coinbase of selling unregistered securities i.e. crypto tokens.
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Hello @ApeForLife,
Yes, the Foundation currently uses Coinbase Prime to custody the Treasury. They only hold $APE, so a comprehensive custody solution was chosen at launch. There is a Treasury Working Group Charter AIP Draft designed in an attempt to create redundancy and address this potential point of failure.
-Amplify
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Thanks for reply @amplify.admin .Things are coming along nicely. The US is probably the last place you want to be holding your crypto at this point, that gives the Sec jurisdiction that they might otherwise not have, if it was rather held in say the Cayman Islands. I understand the problem of wanting to hold a huge amount of Ape safely though. Who then holds it, transfer of private keys etc
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The US and the Sec specifically seem to be getting more crypto unfriendly by the day, with threats against Coinbase etc, while they are being urged on by some crypto hating Senators and members of the US Congress, the Sec might just on a whim decide to seize all crypto held at Coinbase, while serving a cease and desist on them. It might never go this far, but Gensler made it clear that, as far as he is concerned, most (probably all) POS cryptos are securities in the US and the FTX debacle was fuel on the fire for their crypto prosecutions.
The most important and urgent hurdle would thus seem to be to get the Apecoin out of Coinbase, while at the same time being able to still hold it safely.
It seems El Salvador is currently the most crypto friendly country, but whether it can yet be held safely there and third party payments and trades effectively executed from there is another question. The decentralised options that the working groups will focus on with regards to treasury is probably the most important task at hand in my opinion to overcome this hurdle.
And look what now happened today!
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Extreme warning!!! Coinbase could be next!!!https://twitter.com/tier10k/status/1666177953686773763?t=sBJzUt-4D-p5ej7vs8tshA&s=19
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SEC Sues Coinbase, Alleges It Is Unregistered Broker - SEC Sues Coinbase, Alleges It Is Unregistered Broker - WSJ
101-Page SEC Filing Against Coinbase - https://www.sec.gov/litigation/complaints/2023/comp-pr2023-102.pdf
136-page SEC Filing Against Binance - https://www.sec.gov/files/litigation/complaints/2023/comp-pr2023-101.pdf
This appears in the action against Binance:
SEC named ten non-Binance-issued tokens as securities: SOL (Solana), ADA (Cardano), MATIC (Polygon), FIL (Filecoin), ATOM (Cosmos), SAND (The Sandbox ), MANA (Decentraland ), ALGO (Algorand), AXS (Axie Infinity ), and COTI (Coti)
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Yes, Apecoin is at least not incuded there, hopefully the fact that Apecoin may not be staked by US citizens is the saving grace and I think there was no ICO of apecoin either, as long as they don’t ask an order to freeze the whole exchange to investigate.
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True. In a discussion today @Amplify correctly noted that those were originally ICO’s and have a group in control, along with active official social media accounts, and I’ll add that at least by implication, if not tacit or explicit promotion, those token holders might expect an increase in value especially if the tokens have no other true utility.
@0XSword came up with a good phrase of “different potential attack vectors”.
And of course logic or non-correlations count for nothing if dragged into such a suit and forced to spend years and countless dollars in defense of legal attacks and bad press, or if tokens are frozen along with everything else in an exchange that’s under attack rightly or wrongly (in anyone’s opinion).
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Also relevant. Draft bill introduced in U.S. House of Representatives last week that aims to govern #crypto - https://docs.house.gov/meetings/AG/AG00/20230606/116051/HHRG-118-AG00-20230606-SD003.pdf
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