Jack Dorsey's Block earns profit of $1.3B in Q1 / FTX will start trading stocks / Michael Barr says crypto needs to be regulated

N.Y. state's new bill causing bitcoin miners to consider relocating

Inside.com Part of   Network May 19, 2022

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Block, Jack Dorsey's company, continues to grow despite the crypto market crash, with gross profit up 34% year over year. The company hosts Cash App, Square, and Afterpay and netted $1.29B in gross profit in Q1.  More: Block has gained profit recently but also reported that operating costs were up by $1.52B in the first quarter.  The increase in operating costs can be attributed to the acquisition of Afterpay, the buy now, pay later service.  Block's revenues reached $3.96B from January to March 2022, down from the same period in 2021 due to a decrease in Bitcoin revenue.  "We are no longer just a payments company," CEO Jack Dorsey said in a keynote talk. The company no longer wants to be viewed as just a payment provider — it's like calling Amazon an "online bookstore."  Square started as a credit card reader for mobile phones, then offered peer-to-peer payments and banking products like Cash App. It also acquired Afterpay and Jay-Z's Tidal music streaming service and operates an FDIC-insured bank, and currently hosts a platform to offer crypto trading. Cointelegraph

FTX, a crypto exchange, will allow select U.S. users to start trading stocks and ETFs alongside Bitcoin and Dogecoin. The Bahamas-based crypto exchange is one of the world's largest crypto platforms and aims to offer new financial services on the app.  More: The service is available to a limited number of users but will be available to all U.S.-based customers in the near future.  FTX's goal is to create an app that offers a variety of financial services; therefore, it might also start offering trading of other financial assets including futures.  The app will not charge commissions for trading stocks and will not offer payment for order flows due to the ongoing scrutiny by regulators and lawmakers.  The company's revenue will come from crypto to subsidize the new services. President Brett Harrison of FTX wrote, "We don't necessarily have to see a profit on day one."  Other apps that are offering services include Robinhood, Block, and Public.com.  Washington Post

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Michael Barr, a former U.S. Treasury official and adviser to Ripple, says that crypto needs to be regulated in order to protect investors in the digital space. More: Barr was nominated by President Joe Biden to run the U.S. Federal Reserve's oversight and is now the dean of the University of Michigan Law School.  He explains that crypto needs to be regulated for two reasons: first, stablecoins pose financial stability risk, and it's essential for Congress to oversee crypto activity. Second, Crypto investors also need protection, which is the responsibility of regulatory agencies.  Sen. Elizabeth Warren also stressed the importance of investor protection in the cryptocurrency industry, citing last week's TerraUSD crash.  "Turns out, UST was not so stable. If you put $1,000 in Terra 10 days ago, you'd get $90." People were expressing outrage at the UST meltdown last week, which "smells a lot like 2008," says Warren.  Coindesk

The New York Senate's new bill calls for a two-year ban on bitcoin mining projects that rely on a carbon-based energy source. The bill is causing many cryptocurrency mining companies to reconsider their plans — either abandoning their projects or placing them on hold. More: New York state looks to fulfill its commitment to environmental sustainability goals; the bill was passed in late April and calls for a moratorium on proof-of-work mining.  Some crypto miners are considering relocating to Texas to continue business operations. Crypto mining activities that are fueled by nonrenewable sources are not banned and can continue operating.

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FEAR, a Web3-based game, is offering a proprietary metaverse, NFT, and play-to-earn platform for immersive experiences backed by crypto. More: The play-to-earn concept is becoming increasingly popular among the crypto community. It allows gamers to monetize and get awarded with digital currencies or NFTS. FEAR is building a P2E gaming platform where users have NFT ownership and are rewarded with FEAR tokens to complete tasks. The company will focus on entertainment first and then leverage crypto to enhance the user experience by making the platform more interactive and enabling gamers to earn revenue. The FEAR token is built on multichain, including Ethereum, Polygon, and Binance Smart Chain, enabling users to earn rewards while playing the game. There is an in-game wallet built into the platform that is suitable for non-technical gamers. The company is partnered with Epik Prime, DAO Maker, Muon Network, and more. Cointelegraph

Avalanche (AVAX), led by Emin Gun Sirer, a former Cornell professor, has declined by nearly 16% in 24 hours, trading at $27.94. More: Avalanche is the 13th largest cryptocurrency with a market cap of $7.6B, according to CoinMarketCap.  The coin's all-time high was $146.22 in Nov. 2021, but has now dropped in value by 80%.  The total value locked (TVL) on Avalanche blockchain is $4.74B, down by 8.57% in just 24 hours compared to the TVL of $13.7B in late 2021.  Avalanche network has a total of 2.8 million active wallets, but the total transaction volume dropped to 358,474, down from 800,000.  Decrypt

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Gia Mattu is based in Calgary, Alberta. She is an entrepreneur with experience in climate technology, drones, AI, machine learning, and blockchain technology. When she's not working, she loves to hike the Canadian Rockies, try new cuisine, and travel.  Editor Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford.

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