Terraform Labs' new platform for building DAOs / Ukraine pauses integration with Binance platform / Dogecoin rises 8% in 24 hours

Also, Web3 and DeFi are still leading in emerging tech investment compared to biotech and fintech

Inside.com Part of   Network November 29, 2022

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Terraform Labs' current team launched a platform for building DAOs on its blockchain despite missing its founder, Do Kwon. Korean Authorities have issued a search warrant for Kwon, who has been missing since the collapse of Terra's ecosystem in May.  More:  Terraform Labs developed a "no-code" solution for DAOs looking to build on Terra. The current team still believes in the Terraform Labs ecosystem and chose to continue building on instead of rebranding the company.  Enterprise allows users to create DAOs, wallets, and new tokens on its blockchain; however, user details are unknown.  Kwon is still one of the most wanted people in crypto, and sources close to the matter say he is involved in enterprise creation as an advisor.  Zoom out:  South Korean prosecutors may charge Terraform labs co-founder Daniel Shin with fraud due to his involvement with the collapse and for promoting the stablecoin.  Financial Supervisory Service warned Shin several times that virtual assets cannot be registered as payments under the current Electronic Financial Transactions Act.  Shin's failure to comply has prosecutors considering charging him with fraud for violating Capital Markets Act.

BitGo has been selected as a custodian safeguard for FTX's assets during the bankruptcy proceedings. Acting CEO John Ray III appointed BitGo on Nov. 23, which will be confirmed on Dec. 16 in an official hearing.  More:  BitGo is a major player in the crypto custody space that holds various assets for institutional investors, banks, and crypto exchanges.  The list of clients includes Panterra Capital, Swissborg, Coinjar, Ripple, and Nexo.  The company helped recover $740M from FTX following the bankruptcy announcement.  BitGo CEO Mike Belshe said, "when you break down FTX subsidiaries, the ones that used BitGo products are solvent and safe. The ones that didn't aren't." The company is also looking to raise funds at a $1.2B valuation.

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Web3 and DeFi are still leading in emerging tech investment compared to biotech and fintech. Over the past year, $6.5B has poured into this space, which exceeds fintech at $2.7B.  More:  Investment in emerging tech has dropped 32% to $4.7B from $6.9B.   Healthtech, enterprise SaaS, and AI have been on the decline this year.  In 12 months, $6.5B has poured into the Web3 and DeFi space; third-quarter investment in the sector was $879M. The largest investment deals were in blockchain projects, including Mysten Labs ($300M) and Aptos Labs ($200M).   Adam Neumann's new real estate startup, Flow, raised $350M.  Safe's raised a $100M Series A, and Proof closed a $50M round. The collapse of FTX has slowed investment in early-stage crypto projects with a "negative impact on future investment levels," says pitchbook analysts.  Companies that are focusing on blockchain protocols are less affected.

Dogecoin rose 8% over 24 hours on Tuesday morning, increasing its market capitalization by another $1.5B. The meme coin is now touted as a standout performer, rallying with over 150% profit and gaining the attention of investors.  More:  Dogecoin now has a market capitalization of over $14B; the meme coin surged 38% over the week due to speculation that Twitter might use it as a payment.  Bitcoin (BTC) is up 1.7% to $16,500 at the time of writing; Ethereum rose 3.5% in the past 24 hours to $1,213.  The prices in some tokens are spiking despite the current volatility in the crypto markets.  Despite the FTX crisis, Dogecoin is making a massive rally, and some believe it will reach $1 if it maintains this momentum.

Coindesk content chief of staff Pete Pachal says that following the bankruptcy of BlockFi, we can expect to see more crypto companies crumble. Wall Street analysts believe that the fallout of FTX will have a broader effect on stock markets and accelerate the decline in commodity prices.  More:  The FTX collapse will result in a domino effect in the crypto industry, and anyone exposed to the company will likely be affected, Pachal said. BlockFi halted customer withdrawals due to "significant exposure" to FTX and filed for bankruptcy.  Pachal is concerned about the multitude of companies that will come forward with financial troubles in the coming weeks or months; it "might get worse before it gets better," he says.  Mike McGlone, senior commodity strategist at Bloomberg, also predicted that the fallout of FTX will have wider market repercussions exceeding crypto, including the stock market. FTX's fallout will likely cause a decline in commodity prices as the world economy enters a period of recession.

Ukraine is pausing its plan to integrate Binance crypto payments into the government's app. Ukraine faced backlash from the crypto community due to Binance's business relationship with Russia; "It's not patriotic and not safe for the government," says Vadym Hrusha, head of Trustee Plus.  More:  Local crypto exchanges said Ukraine shouldn't be using a foreign company for a government service when there are homegrown companies that can do it just as well. They showed their displeasure by blocking trades of Binance's BNB token on their platforms. In October, Binance integrated its know-your-customer (KYC) process into Ukraine's Diia mobile app to allow issuing of digital copies of documents and government services online. This would help Ukrainians register on the crypto exchange faster using their Diia profile.   The integration would include crypto payments in Diia via Binance.

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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 and 1972 Fords.

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