Institutional investment in crypto companies is likely to decrease as investors proceed with caution due to the sudden collapse of FTX. Some industry leaders have argued that the collapse of FTX is not related to the inherent value of Bitcoin and blockchain innovation but is the direct result of VC funds failing to conduct proper due diligence. More: - CFA Institute's 2022 investor trust survey revealed that 94% of state/government pension plan sponsors said they are currently investing in cryptocurrencies.
- In October 2021, Ontario Teachers Pension Plan invested $75M in FTX international and FTX US; in January 2022, it invested another $20M.
- Despite the growing allocation of institutional investments into crypto, it is likely that the aftermath of the FTX debacle will cause investors to pull back.
- "This is going to make it very difficult for crypto [companies] to get institutional capital," says Patrick Ghali, Co-founder of Sussex Partners.
Zoom out: - Kevin O'Leary, Shark Tank investor, was asked if he would invest in a Sam Bankman-Fried venture again, even though the founder admitted to pouring billions worth of customer funds into his hedge fund:
- O'Leary, after a few seconds of silence, says yes, that he would invest in SBF again. Whether you love him or hate him, SBF "does not have an evil bone in his body," says the Shark Tank investor.
- O'Leary was a spokesperson for FTX who recently admitted that FTX was one of his bad investments but said he is doing OK due to the diversification of his portfolio.
- He believed that FTX was the last place that he'd expect to get in trouble and also predicted that once a big player gets wiped out, then crypto would hit bottom, which he believes was FTX.
- Mr. Wonderful was a huge stakeholder in FTX international and FTX US, who now finds his accounts frozen.
| |
FTX founder Sam Bankman-Fried was said to be badmouthing Binance's Changpeng Zhao, one of SBF's early backers, at a private investor meeting at a conference in Saudi Arabia. It is no coincidence that SBF goes to the Middle East and 'comes back bankrupt,' says one source who believes this event led to the fall of FTX within days. More: - SBF traveled to Riyadh for the annual "Davos in the Desert" financial summit Oct. 25-27 to raise money from deep-pocketed investors in the region.
- Binance CEO Changpeng "CZ" Zhao is a highly respected member of the investor community in the region.
- Several sources tipped CZ to the occurrence that SBF had been slamming him behind his back.
- CZ was furious at the realization, leading many to believe this led to the ultimate fall of SBF and FTX.
- Days after FTX declared bankruptcy, SBF admitted to doing the same in Washington, D.C., and said the criticism "was not a good strategic move on my part."
- Coindesk published a report that Alameda Research's trading balance sheet relied on FTX's token, FTT, and not fiat or any other cryptocurrency.
- Soon after, CZ announced that Binance would sell its FTT holdings, which caused investors to panic, triggering the FTX bankruptcy.
| |
 A message from VESTABOARD Explore the beautiful messaging display that’s impressing editors at Rolling Stone, Wall Street Journal, GQ, and more. “Eight thousand, four hundred and forty-eight. That's how many magical spinning flaps make up the beautifully tactile heart of the Vestaboard. Ditching the cold, heartless world of simple screens, the Vestaboard is a smart display that can tell you anything from the weather to the time, as well as being controlled to show custom messages, appointments and more, via a handy app. Each plink of the physical flaps will put recipients in mind of old-fashioned train station displays, ensuring that physical objects can still spark joy in this increasingly digital world.” - GQ UK - Owners love using Vestaboard to create a focal point in their home, sharing daily inspiration with their kids and surprising each other with funny messages.
- Automate content from hundreds of channels, including updates from Spotify, major league sports, stocks and more.
See Vestaboard in action
| |
BlockFi halted withdrawals last week and may file for Chapter 11 bankruptcy. The company reached out to Binance for financial assistance. BlockFi accepted a $400M line of credit from FTX over the summer due to financial troubles. More: - BlockFi paused customer withdrawals late last week due to "significant exposure to FTX."
- The company wrote to its customers saying, "we do have significant exposure to FTX," given the large line of credit.
- The crypto firm has hired Haynes and Boone as counsel and BRG as a financial advisor.
- SALT, a crypto lending firm, has also halted customer withdrawals "effective immediately" due to the collapse of FTX.
- Shawn Owen, the CEO of SALT, denies allegations that the company is going bust, but issued a statement saying the "collapse of FTX has impacted our business."
| |
Over 4,000 crypto community members have signed a petition to demand an investigation surrounding the meeting between SEC chairman Gary Gensler and FTX founder Sam Bankman-Fried. Gensler has a relationship with SBF through their affiliation with MIT, but very little is known about the private discussion. More: - Attorney John Deaton has a website called CryptoLaw and wrote a statement saying, "Evidence has emerged that proves that Gensler met with […] [FTX CEO] Sam Bankman-Fried, before the $14B collapse of FTX."
- Tom Emmer, a Republican representative, tweeted on Nov. 10 that "Gary Gensler was helping SBF and FTX work on legal loopholes to obtain a regulatory monopoly."
- SEC documents confirm the meeting between the duo occurred in March 2022 to discuss "the unique risks associated with custody of digital asset securities."
Zoom out: - Kevin O'Leary, the Shark Tank investor, says that he was willing to throw FTX a lifeline hours before the exchange filed for bankruptcy.
- FTX was looking to raise $8B days before the collapse, and there was a possibility that sovereign wealth would have saved the company with additional funds.
- However, Gensler commented that the crypto industry was "significantly non-compliant" and needed more regulation.
- "The minute that occurred, that was the end of any sovereign wealth fund's interest," O'Leary said, diminishing the possibility of receiving additional capital.
| |
 A message from AIRSLATE airSlate is the best way to handle document workflows. Edit PDFs, create web forms, eSign documents, or automate workflows. Build, organize, complete, and automate everything that has to do with documents. Reclaim up to 40% of the hours spent completing tasks manually. - No-code setup: Time-consuming coding is a thing of the past. Automate your document workflows with airSlate’s no-code Bots in just a few clicks.
- All-in-one solution: Create simple document processes, automate your most complex workflows, edit PDFs, and eSign your documents.
- Natively multi-cloud: Integrate with any cloud service via no-code Bots. Automatically update spreadsheets, store documents, and pre-fill agreements.
Revolutionize how your business operates. Discover what airSlate document workflow automation can do for you. Start Free Trial
| |
Circle, the company behind the USDC stablecoin, announced support for Apple Pay to enable businesses to accept the coin for payments. The option is available for both traditional businesses and crypto companies to make payments faster, easier, and more secure. More: - Apple Pay can now be used to accept Circle USDC as a method of payment; payments can be made using Apple's Safari browser or iPhone, Apple Watch, or iPad.
- Apple Pay and Circle's Payments solution make it possible for crypto-native businesses to accept payments from customers who don't use crypto at all.
- The service is available for NFT marketplaces, crypto gaming, crypto exchanges, crypto wallets, and cross-border remittance providers to offer payment solutions.
- Traditional businesses can also use this retail payment service to offer digital currency options for their customers.
- Customers will no longer have to fill out lengthy forms or create an account to use the service.
- First, businesses will need to open a circle account and create an Apple developer account;
- Next, connect to the Circle payments solution via API integration that will allow Apple pay options.
- The move is a significant development in the crypto space, which can help boost adoption across businesses and existing users.
| |
The Federal Reserve Bank of New York and global banking giants, including Citigroup, HSBC, Mastercard, and Wells Fargo, will participate in a 12-week digital dollar pilot. The New York Fed innovation center is collaborating with the banks to advance the research of tokenized assets. More: - The project, called the regulated liability network, will issue tokens and settle transactions using central bank reserves.
- The pilot project is aimed at studying the feasibility of digital money on a distributed ledger.
- Federal regulators in the U.S. have not decided whether a CBDC will be released. However, the private sector has been exploring the possibility.
| |
Quick Hits: *This is sponsored content.
| |
| |
 |  | 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 and 1972 Fords. | |
The award-winning messaging display that’s not a digital screen. See it in action at vestaboard.com. | |
| |
Comments
Post a Comment