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Repercussions of the FTX Collapse
Roughly half a year after the spectacular downfall of FTX, the crypto industry has the opportunity to assess the aftermath. The swift knock-on effect on other crypto enterprises depleted the industry's liquidity, extending the so-called crypto winter. Notably, Silvergate Bank, BlockFi, and Genesis Global Capital were among the casualties of the exchange's bankruptcy.
The regulatory environment for crypto was not left unscathed by FTX’s insolvency. Authorities have since ramped up their scrutiny of companies, sometimes utilizing contentious tactics, in a bid to prevent an alarming fusion of traditional finance and cryptocurrencies.
High-profile closures in the US over the last few months due to regulatory pressures include Bittrex, Nexo, and Unbanked. Coinbase CEO Brian Armstrong speculated that China could profit most from the United States' restrictive crypto regulations, although this remains to be seen.
Business operations are being revisited across the industry due to heightened regulatory scrutiny. Binance’s CEO, Chanpeng Zhao, revealed the company even contemplated acquiring a bank in response to the de-banking of crypto companies. The crypto exchange now gears up for a workforce reshuffle to strengthen its compliance and regulatory prowess.
FTX's new leadership claims the revised FTX 2.0 could see a launch as early as next year, ideally in time to join other crypto enterprises striving to endure post-November 2022.
Spotlight on Tether, Tabi, and Nvidia
In addition to this, we shed light on Tether's Bitcoin mining activities in Latin America, Tabi's fundraising round, and Nvidia's commitment to advancing the next generation of AI machinery.
Rethinking De-banking: Binance's CEO Speaks Out
Zhao from Binance remarked that making minority investments in financial institutions may encourage them to be more crypto-friendly, a response to increasing concerns about crypto companies being de-banked. This sentiment is echoed in the wake of several US banks' collapse in 2023, fueling concerns over the dwindling number of crypto-friendly banks. Major banking partners such as Silvergate, Silicon Valley Bank, and Signature Bank have all retreated this year. Additionally, Binance is exploring ways to reduce counterparty risk by enabling institutional clients to maintain their trading collateral at a bank instead of on the crypto platform.
Tether Ventures into Bitcoin Mining in Uruguay
Tether, the stablecoin issuer, has declared its intention to inaugurate Bitcoin mining activities in Uruguay in partnership with a local authorized entity. Tether asserts that the endeavor will leverage renewable energy sources for "sustainable" Bitcoin mining and plans to expand its team. This follows Tether's strategy to "regularly allocate up to 15%" of its profits towards BTC purchases. The company emphasizes Uruguay's ability to generate 94% of its electricity from renewable sources and its reliable grid. Indications of possible expansion into South Africa and Brazil are also suggested in job listings on its website.
Nvidia Unleashes AI Supercomputer to Shape ChatGPT Successors
Nvidia maintains its momentum in the race to cultivate AI technologies with plans to release more products. CEO Jensen Huang recently showcased a new AI supercomputer platform named DGX GH200 that will facilitate tech companies in creating successors to the renowned AI chatbot, ChatGPT. Prominent tech giants like Microsoft, Meta, and Alphabet are expected to be early adopters of this supercomputer equipment. Furthermore, Microsoft is developing its own AI chip, purportedly to manage escalating development costs for both in-house and OpenAI projects.
BNB NFT Marketplace Tabi Secures $10 Million in Angel Investment
Tabi, formerly known as Treasureland, a nonfungible token (NFT) marketplace, has successfully raised $10 million in an angel investment round, backed by venture capital firms Animoca Brands, Draper Dragon, Hashkey Capital, Infinity Crypto Ventures, and Youbi Capital. Besides offering NFT trading and launchpad functionalities, Tabi transforms users' on-chain activities into "experience points", redeemable for future airdrop rewards and earnings. The protocol also includes a gaming platform amalgamating blockchain game transactions and entertainment. The raised capital will primarily fuel the development of Tabi’s gaming ecosystem and the establishment of an on-chain identity protocol.
