Just over six months after FTX's dramatic collapse, the cryptocurrency industry can finally begin to analyze the effects of the debacle. The rapid ripple effect on other crypto firms drained liquidity from the industry and prolonged the crypto winter, with Silvergate Bank, BlockFi, and Genesis Global Capital among those affected by the exchange's collapse.
The FTX bankruptcy also affected the regulatory landscape for cryptocurrencies, with authorities cracking down on companies, employing controversial methods in some cases, to prevent an ever-deeper mix of traditional finance with cryptocurrency.
Firms that have closed their operations in the United States citing regulatory pressure in recent months included Bittrex, Nexo, and Unbanked, to name a few. Coinbase CEO Brian Armstrong said this week that China is the one that will benefit the most of restrictive crypto policies in the US, but only time will tell if this is true.
Companies are also reviewing their business operations due to increased regulatory scrutiny. In response to the debanking of crypto companies, Binance has even considered buying a bank in recent months, its CEO Chanpeng Zhao said. Now, the crypto exchange is preparing for a layoff that will boost your regulatory and compliance capabilities.
As industry digests recent events, new FTX management calls for FTX 2.0 could launch as soon as next yearhopefully in time to join the club of crypto companies striving to stay in business after November 2022.
This week's Crypto Biz also takes a look at Tether's Bitcoin (BTC) mining operations in Latin America, the Tabi funding round, and Nvidia's efforts to power the next generation of artificial intelligence (AI) machines.
Buying a Bank Won't Solve Crypto Unbanking Problem: Binance CEO
Binance is unlikely to buy banking institutions, but plans make minority investments in financial institutions that will “hopefully sway them to be more crypto-friendly,” Zhao commented on growing concerns that cryptocurrency companies will be unbanked. The collapse of several US banks in 2023 has raised concerns that the pool of crypto-friendly banks is shrinking. Former key banking partners Silvergate, Silicon Valley Bank and Signature Bank have capitulated this year. The exchange also reportedly explore a solution to reduce counterparty risk by allowing institutional clients to hold their trade collateral at a bank rather than on the crypto platform.
Tether ventures into Bitcoin mining in Uruguay
Stablecoin issuer Tether has announced that Launches Bitcoin Mining Operations in Uruguay in collaboration with an authorized local company. According to Tether, the company would use renewable energy sources aimed at “sustainable” Bitcoin mining and planned to hire additional team members. The mining ad followed Tether's plan to "regularly allocate up to 15%" of their earnings on BTC purchases. Tether cited Uruguay's ability to generate 94% of its electricity from renewable sources such as wind, solar, and hydropower, and its reliable network. Job listings on his website also suggested an expansion into South Africa and Brazil.
Nvidia Introduces AI Supercomputer To Create Successors To ChatGPT
Nvidia continues to advance the race to develop artificial intelligence tools and applications as the company revealed plans to launch more products. Its CEO, Jensen Huang, recently unveiled a new AI supercomputer platform called DGX GH200 that will help tech companies develop successors to the popular AI chatbot ChatGPT. Big tech companies like Microsoft, Meta and Alphabet are expected to be among some of the early adopters of supercomputing equipment. Also Microsoft is developing its own AI chipwhich states that it intends to deal with rising development costs for internal projects and OpenAI.
BNB NFT Tabi Marketplace Raises $10 Million in Angel Funding
The Tabi non-fungible token (NFT) marketplace, formerly known as Treasureland, has completed a $10 million angel funding round seeded by venture capital firms Animoca Brands, Draper Dragon, Hashkey Capital, Infinity Crypto Ventures, and Youbi Capital. Along with NFT launchpad and trading features, Tabi converts users' chain activities into "experience points", which can be redeemed for future rewards and airdrop earnings. The protocol also contains a gaming platform that aggregates blockchain gaming entertainment and transactions. The funds will be used primarily to develop the Tabi gaming ecosystem and build an on-chain identity protocol.
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