
Is Philip Martin a good guy? As an Army veteran, he served in the U.S. Army, where he spent years working on counterintelligence. He was a part of Amazon and Palantir before joining Coinbase to lead its security operations. So his views on the crypto industry's horrendous hacking problems carry considerable weight.
Last week, I caught up with Martin, who asked him what has been the industry beset by hackers since the very beginning has changed when it comes to security. While fundamental principles remain the same, the rise of smart contracts has made the job considerably harder.
Martin observed: 'I am able to make a decision that is right for me. However, he added that building and accessing smart contracts is extremely easy, but this has meant many core code libraries have gaping security holes.
Martin says it doesn't have to be this way, but many in the sector lack the incentives to build with security in mind. Coinbase, which has a robust track record in cyber defense, is looking to establish an example with its new Base blockchain-building an open-source monitor called Pessimism on the chain itself. Martin adds that Microsoft's security-by-design approach in Windows 7 is similar to that of Microsoft, which was introduced in 2009.
The crypto sector may not have a choice if it wants to grow and be taken seriously. I wrote recently about a embarrassing incident where a custody company, ironically named Fortress, let itself get robbed, and how this was just the latest in a long series of sloppy behavior that has made crypto a byword for hacking. The most dangerous threat is not rogue individuals, but a nation state-North Korea-and organized crime outfits in Eastern Europe. Companies are being robbed every week.
The news isn't all bad, though. Martin correctly notes that smart contracts are just five years old and that the basic building blocks of security to support them are still being built. It's also encouraging that large crypto companies, such as Coinbase and Binance, frequently help each other when it comes to unmasking and eradication of hackers.
Martin says the industry needs to move faster and act like grown-ups, but that's not what they're trying to do. If there's another crypto boom, it will need to be built around a new ethos that values security as much as prosperity.
The former CTO at FTX testified that Sam Bankman-Fried's hedge fund dipped into customer money as far back as 2019, and that the exchange lost or squandered $14 billion.
The new rules imposed by the U.K. financial regulator on crypto firms, including those outside the country, are in effect.
A Swiss firm uses Coinbase's Base blockchain to generate tokens that represent shares in a T-bill ETF, though it is only available outside the U.S. for regulatory purposes.
Yuga Labs has laid off a number of U.S. employees as its CEO said the company, known for its Bored Apes brand, has pursued too many projects.
The Bank of America note says U.S. Treasuries have been oversold-a situation that in the past has been a pre-requisite for major volatility in crypto.