Just over six months after FTX’s dramatic collapse, the crypto industry can finally begin analyzing the effects of the debacle. The quick ripple effect to other crypto businesses drained liquidity from the industry and prolonged the crypto winter, with Silvergate Bank, BlockFi and Genesis Global Capital among those hit by the exchange’s collapse. FTX’s bankruptcy has impacted the crypto regulatory landscape, with authorities cracking down on firms to avoid a deepening blend of traditional finance with cryptocurrencies. Companies that closed their United States operations citing regulatory pressure in the past months included Bittrex, Nexo and Unbanked. Coinbase CEO Brian Armstrong said this week that China stands to benefit most from restrictive crypto policies in the U.S., but only time will tell if this is true.
In response to crypto firms being debanked, Binance has even considered buying a bank in the past months, according to its CEO Chanpeng Zhao. Now, the crypto exchange is gearing up for a layoff that will boost its compliance and regulatory capabilities. While the industry digests the recent events, FTX’s new management claims FTX 2.0 could be launched as soon as next year, hopefully in time to join the club of crypto companies striving to remain in business after November 2022.
Stablecoin issuer Tether has announced its plans to launch Bitcoin (BTC) mining operations in Uruguay in collaboration with a local licensed company. The venture would utilize renewable energy sources aimed at sustainable Bitcoin mining and planned to hire additional team members. This mining announcement followed Tether’s plan to regularly allocate up to 15% of its profits into BTC purchases.
On the technology front, Nvidia continues to push forward in the development of AI tools and applications, revealing plans to release more products. Its CEO Jensen Huang recently unveiled a new AI supercomputer platform called DGX GH200, which will aid tech companies in developing successors to the popular AI chatbot ChatGPT. Major tech firms such as Microsoft, Meta and Alphabet are expected to be among some of the pioneering users of the supercomputer equipment. Microsoft even plans to develop its AI chip to deal with the rising costs of development for in-house and OpenAI projects.
In the nonfungible token (NFT) space, the BNB NFT marketplace Tabi has completed a $10 million angel funding round seeded by venture capital firms like Animoca Brands, Draper Dragon, Hashkey Capital, Infinity Crypto Ventures, and Youbi Capital. The funds will be primarily used to develop Tabi’s gaming ecosystem and construct an on-chain identity protocol.