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GM to one and all, and welcome to Tokengraph. Weâve got a great lineup today â but first, an announcement:
Moving forward, weâll be moving from sending a newsletter every weekday to once per week.
I know, some of you may be sad â but this is actually going to help us build even better newsletters for you, believe it or not. This shift will enable us to focus on bringing you the biggest, highest-value stories and podcast recaps. We want to give you the best newsletter possible, and thatâs what weâre aiming for with this transition. Thank you!
Without further adoâŚ
CZ and Binance Sued by CTFC
Coinbase Creating a Stablecoin?
Bitcoin Is Getting ZKProofs!
Gucci Collab with Yuga Labs
Polygon zkEVM Launches Beta Mainnet

Binance and its CEO, CZ, have been officially sued by the United States Commodity Futures Trading Commission (CFTC) for trading and derivatives violations.
đ¨ Breaking News đ¨
#Binance is sued by US CFTC for allowing users to... trade on its exchange. đ¤Ł
The US will have to do better than that to break Binance monopoly.
This feels personal.
Those 196 Congress Members are probably salty @cz_binance rekt their #FTX sugar daddy.
— Duo Nine ⥠discord.gg/ycc (@DU09BTC)
Mar 28, 2023
The exchange has actually been under investigation since 2021, and this suit is the result of that investigation â the CFTC believes that Binance has failed to fulfill regulatory duties by not registering with the regulator for derivatives.
1/23
Oh boy
Case is up and it's bad.
This is the CFTC attempting to strike *fatal* blow to Binance, and at first read through... I think they actually have really strong chances here of succeeding in toppling the Binance empire.
— Adam Cochran (adamscochran.eth) (@adamscochran)
Mar 27, 2023
To go deeper into the explanation, the CFTC is alleging that Binance has provided trading services to lots of US customers, despite having a policy banning use by users in the US. Hereâs the wording directly from the suit:
âAll the while, Binance, Zhao, and Lim, the platformâs former Chief Compliance Officer (âCCOâ), have each known that Binanceâs solicitation of customers located in the United States subjected Binance to registration and regulatory requirements under U.S. law.â
Accountant: "In March 2023, why did you swap BUSD to USDC then to USDT then withdrew it to Binance then to Coinbase then to your bank account back to Kraken back to Binance and then to Bybit?"
Me: "Just trying not to get rugged."
— Tree of Alpha (@Tree_of_Alpha)
Mar 27, 2023
Some believe that this case has serious implications for the exchange (and for other crypto exchanges), but time will tell whether this ends in a fine for CZ and nothing more, or much larger consequences like the removal of services or shutting down the exchange.

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Speaking of big exchanges, Coinbase has put out a call to builders to start using their new Layer 2, Base â including something called âflatcoins.â
Are you a builder passionate about making the onchain economy grow, but looking for where to start?
We just published a Request for Builders: four areas weâd love to see builders explore on Base (with funding from the Base Ecosystem Fund) đ§ľ
— Base (@BuildOnBase)
Mar 24, 2023
Flatcoins are inflation-pegged stablecoins that negate economic uncertainty caused by the legacy financial system, which is especially important in light of current market conditions.
Coinbase wants developers on its Base network to look into developing an inflation-pegged âflatcoin" amid recent banking turmoil. cointelegraph.com/news/coinbase-âŚ
— Cointelegraph (@Cointelegraph)
Mar 27, 2023
Hereâs what Base had to say about it:
â[We] are particularly interested in âflatcoinsâ â stablecoins that track the rate of inflation, enabling users to have stability in purchasing power while also having resiliency from the economic uncertainty caused by the legacy financial system.â
Coinbase is making a Request for Builders on their L2 and one of the products they want to incubate is a non-fiat pegged stable đ
— âłiLLiÎđđŽâł (@0xmillie_eth)
Mar 26, 2023
These stablecoins wouldnât be pegged to the sheer value of a national currency â they would be pegged to the actual price of living, which is what inflation tracks (albeit imperfectly).
This is the best explanation for why a CPI denominated "flatcoin" RAI may be preferable to USD denominated RAI
if USD inflates quickly (CPI spikes), USD-RAI holders would lose value quickly
CPI-RAI holders would be OK in the short term, but the rates would spike negative
— ameen.eth (@ameensol)
Mar 27, 2023
Flatcoins arenât the only thing that they want builders to develop on their chain. Base is also interested in seeing an on-chain reputation system, an on-chain limit order book (LOB) exchange, and safety tools for the DeFi ecosystem.
We wish them the best of luck in building the future of blockchain, and we salute Base and projects like it that are choosing to build in the face of regulatory uncertainty.


Who holds the most Coinbase ($BASE) stock in the world?
A. AH Capital Management LLC B. ARK Investment Management LLC C. Nikko Asset Management Co., Ltd. B. The Vanguard Group, Inc.
Scroll down to the bottom to see if you're right!

Other Top Stories Today đ˘
Swiss nonprofit ZeroSync Association is creating a way for the Bitcoin network to use zkProof technology without having to download the whole blockchain itself or use a third party. The tool could totally change the way that Bitcoin transactions are validating, enabling transaction processing to be done off-chain and freeing up the network to run smoother and faster than before.
Â
The company behind the Bored Apes Yacht Club (BAYC) NFT collection has announced a collaboration with luxury designer Gucci. Itâs unclear what their new digital project will be, but this is what Gucci had to say about it on Twitter: âContinuing to explore the Metaverse, the House comes together with Yuga Labs," tweeted Gucci. "Stay tuned as a new narrative takes shape, blurring the boundaries between the physical and digital." Apparently, itâs a multi-year partnership, and this announcement marks the beginning of chapter 1.
Â
Described as the âholy grail of Ethereum scaling,â Polygonâs zero-knowledge Ethereum Virtual Machine (zkEVM) is stepping up to its mainnet beta stage. The network promises lower transaction costs, increased throughput, and massive scalability through transaction batching. âImagine you computed a whole business transaction somewhere else off-chain on layer 2, but on Ethereum, you submitted a very succinct proof, and Ethereum 200% knows that you computed it correctly,â Sandeep Nailwal, Polygonâs co-founder, said. âThatâs why itâs a game changer. The community knows that Optimistic Rollups are like crutches before Ethereum figured out ZK. And now that ZK is there, it kind of makes Optimistic Rollups obsolete. This is the end game basically.â

â Trivia Answer
Answer: A.
Although you might think ARK and Cathie Woods hold the most Coinbase stock from all the headlines they make, AH Capital Management LLC holds the most at over 14M shares (7.84% total).

Web3 Resource of the Day

Polygon zkEVM Launch with Mihailo Bjelic and Jordi Baylina | Podcast from Bankless
Just in time for Polygonâs zkEVM launch, Bankless comes to the rescue with a new podcast, featuring Mihailo Bjelic (Polygon Co-founder) and Jordi Baylina (Technical Lead for the zkEVM). In this episode, Bankless covers everything from what Polygon zkEVM is to how it works, how it stacks up against Proof-of-Stake (PoS) chains, and how this new chain from Polygon stands to revolutionize the way we transact in blockchain.

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Tokengraph

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