Reading 4 min Views 8 Published Updated
Just over six months after the dramatic crash of FTX, the crypto industry can finally begin to analyze the aftermath of the crash. The rapid ripple effect for other crypto companies has drained liquidity from the industry and prolonged the crypto winter, with Silvergate Bank, BlockFi and Genesis Global Capital among those affected by the collapse of the exchange.
The bankruptcy of FTX also had an impact on the regulatory framework for cryptocurrencies, as authorities began cracking down on companies—in some cases, using controversial methods—to avoid the ever-increasing mingling of traditional finance with cryptocurrencies.
Companies that have closed their US operations, citing regulatory pressure in recent months, include Bittrex, Nexo and Unbanked, just to name a few. Coinbase CEO Brian Armstrong said this week that China would benefit the most from a restrictive U.S. policy on cryptocurrencies, but only time will tell if this is true.
Companies are also reviewing their business operations due to increased scrutiny from regulators. According to its CEO, Changpeng Zhao, in recent months, Binance even considered buying the bank in response to the termination of banking operations with crypto companies. The cryptocurrency exchange is now preparing for a layoff that will boost its compliance and regulatory capabilities.
As the industry digests recent developments, new FTX management says FTX 2.0 could launch as early as next year to join the club of crypto companies looking to stay in business beyond November 2022.
Cryptocurrency Biz is also looking at Tether’s Bitcoin (BTC) mining operations in Latin America this week, the Tabi funding round, and Nvidia’s efforts to build a new generation of artificial intelligence (AI) machines.
Buying a Bank Won’t Solve Cryptocurrency Debanking Problem – Binance CEO
Binance is unlikely to buy up any banking institutions, but plans to make minority investments in financial institutions that “hopefully will influence their more cryptocurrency-friendly attitude,” Zhao commented on the growing concern about the debanking of cryptocurrency companies. The collapse of several U.S. banks in 2023 raised concerns that the pool of crypto-backing banks is shrinking. Former key banking partners Silvergate, Silicon Valley Bank and Signature Bank capitulated this year. The exchange is also reportedly exploring a solution to mitigate counterparty risk by allowing institutional clients to store their trading collateral in a bank rather than on a cryptocurrency platform.
Tether Switches to Bitcoin Mining in Uruguay
The stablecoin issuer Tether has announced that it will launch Bitcoin mining operations in Uruguay in cooperation with a local licensed company. According to Tether, the venture will use renewable energy aimed at “sustainable” Bitcoin mining and plans to hire additional team members. The mining announcement followed Tether’s plan to “regularly allocate up to 15%” of its profits to buy BTC. Tether cited Uruguay’s ability to generate 94% of its electricity from renewable sources such as wind, solar and water, as well as its reliable grid. Job listings on his website also suggested expansion to South Africa and Brazil.
Nvidia Unveils AI Supercomputer to Build ChatGPT Successors
Nvidia continues to forge ahead in the development of AI tools and applications as the company has announced plans to release more products. Its CEO Jensen Huang recently unveiled a new AI supercomputing platform called the DGX GH200 that will help tech companies develop successors to the popular ChatGPT AI chatbot. Major tech firms such as Microsoft, Meta and Alphabet are expected to be among the early adopters of supercomputing hardware. Microsoft is also developing its own AI chip, which claims it intends to cope with the rising costs of developing its own and OpenAI projects.
BNB NFT Marketplace Tabi Raises $10M Angel Funding
The Tabi Non-Fungible Token (NFT) Market, formerly known as Treasureland, has completed a $10 million angel funding round hosted by venture capital firms Animoca Brands, Draper Dragon, Hashkey Capital, Infinity crypto Ventures and Youbi Capital. Along with the NFT trading and launchpad features, Tabi converts user actions online into “experience points” that can be redeemed for future rewards and giveaway earnings. The protocol also contains a gaming platform that combines gaming transactions and entertainment on the blockchain. The funds will be primarily used to develop the Tabi gaming ecosystem and create a network identity protocol.
Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered straight to your inbox every Thursday.
Reading 4 min Views 8 Published Updated
Just over six months after the dramatic crash of FTX, the crypto industry can finally begin to analyze the aftermath of the crash. The rapid ripple effect for other crypto companies has drained liquidity from the industry and prolonged the crypto winter, with Silvergate Bank, BlockFi and Genesis Global Capital among those affected by the collapse of the exchange.
The bankruptcy of FTX also had an impact on the regulatory framework for cryptocurrencies, as authorities began cracking down on companies—in some cases, using controversial methods—to avoid the ever-increasing mingling of traditional finance with cryptocurrencies.
Companies that have closed their US operations, citing regulatory pressure in recent months, include Bittrex, Nexo and Unbanked, just to name a few. Coinbase CEO Brian Armstrong said this week that China would benefit the most from a restrictive U.S. policy on cryptocurrencies, but only time will tell if this is true.
Companies are also reviewing their business operations due to increased scrutiny from regulators. According to its CEO, Changpeng Zhao, in recent months, Binance even considered buying the bank in response to the termination of banking operations with crypto companies. The cryptocurrency exchange is now preparing for a layoff that will boost its compliance and regulatory capabilities.
As the industry digests recent developments, new FTX management says FTX 2.0 could launch as early as next year to join the club of crypto companies looking to stay in business beyond November 2022.
Cryptocurrency Biz is also looking at Tether’s Bitcoin (BTC) mining operations in Latin America this week, the Tabi funding round, and Nvidia’s efforts to build a new generation of artificial intelligence (AI) machines.
Buying a Bank Won’t Solve Cryptocurrency Debanking Problem – Binance CEO
Binance is unlikely to buy up any banking institutions, but plans to make minority investments in financial institutions that “hopefully will influence their more cryptocurrency-friendly attitude,” Zhao commented on the growing concern about the debanking of cryptocurrency companies. The collapse of several U.S. banks in 2023 raised concerns that the pool of crypto-backing banks is shrinking. Former key banking partners Silvergate, Silicon Valley Bank and Signature Bank capitulated this year. The exchange is also reportedly exploring a solution to mitigate counterparty risk by allowing institutional clients to store their trading collateral in a bank rather than on a cryptocurrency platform.
Tether Switches to Bitcoin Mining in Uruguay
The stablecoin issuer Tether has announced that it will launch Bitcoin mining operations in Uruguay in cooperation with a local licensed company. According to Tether, the venture will use renewable energy aimed at “sustainable” Bitcoin mining and plans to hire additional team members. The mining announcement followed Tether’s plan to “regularly allocate up to 15%” of its profits to buy BTC. Tether cited Uruguay’s ability to generate 94% of its electricity from renewable sources such as wind, solar and water, as well as its reliable grid. Job listings on his website also suggested expansion to South Africa and Brazil.
Nvidia Unveils AI Supercomputer to Build ChatGPT Successors
Nvidia continues to forge ahead in the development of AI tools and applications as the company has announced plans to release more products. Its CEO Jensen Huang recently unveiled a new AI supercomputing platform called the DGX GH200 that will help tech companies develop successors to the popular ChatGPT AI chatbot. Major tech firms such as Microsoft, Meta and Alphabet are expected to be among the early adopters of supercomputing hardware. Microsoft is also developing its own AI chip, which claims it intends to cope with the rising costs of developing its own and OpenAI projects.
BNB NFT Marketplace Tabi Raises $10M Angel Funding
The Tabi Non-Fungible Token (NFT) Market, formerly known as Treasureland, has completed a $10 million angel funding round hosted by venture capital firms Animoca Brands, Draper Dragon, Hashkey Capital, Infinity crypto Ventures and Youbi Capital. Along with the NFT trading and launchpad features, Tabi converts user actions online into “experience points” that can be redeemed for future rewards and giveaway earnings. The protocol also contains a gaming platform that combines gaming transactions and entertainment on the blockchain. The funds will be primarily used to develop the Tabi gaming ecosystem and create a network identity protocol.
Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered straight to your inbox every Thursday.