Tech
How are cryptocurrencies faring in the post-Sam Bankman-Fried world?
By now you’ve heard that the Sam Bankman-Fried trial is over. What was the verdict for the founder of bankrupt cryptocurrency exchange FTX?
Guilty on all seven charges, including violations of fraud, money laundering and campaign finance laws. Bankman-Fried will be sentenced in the spring.
So how is the world of bitcoin and blockchain faring now that its most famous ambassador will likely end up behind bars?
He spoke with Marketplace’s Matt Levin Laura Shin, cryptocurrency journalist and host of the “Unchained” podcast, about how people in the cryptocurrency world reacted to the SBF process and what cryptocurrency enthusiasts choose to focus on next. The following is an edited transcript of their conversation
Laura Shin: I think a lot of them think it was the right verdict. Because the crypto community understands cryptography so well, I think they were way ahead of mainstream media, they were way ahead of non-crypto people in actually understanding what happened. For example, to this day, I’ve heard from the media or, for example, that the defense during the trial was saying things like FTX suffered a bank run. And cryptocurrency lovers know that a bank run shouldn’t be possible with a cryptocurrency exchange, that banks operate on fractional reserves, but cryptocurrency exchanges shouldn’t for numerous reasons, which I could go into, it might take a bit of time. But the point is simply that for a cryptocurrency exchange, as long as it works properly, every single customer, if they all went to withdraw everything at once, they should all be able to get their assets back. And so, the moment we woke up on Tuesday morning, November 8, 2022, and it was announced that Binance was going to buy FTX, everyone knew that FTX had done something – everyone in the cryptocurrency world, I should say – knew that FTX had done something wrong. And then what’s interesting is that a lot of the subsequent outrage was about the way the mainstream media was covering him, where they seemed to think he’d made a mistake. And people in the cryptocurrency world from the beginning were saying, “No, no, no, he did something wrong.” So the point is, I think for them this was just a verdict that was a long time coming.
Matt Levin: I’m really curious how venture capital firms, who provide seed capital to many of these crypto startups, feel about the crypto space now?
Shin: Honestly, after the collapse of FTX, things got pretty quiet, obviously. Furthermore, this is a kind of tail end of a bear market in the cryptocurrency industry. And so when that happens, there’s also a little bit of scaling. You know, honestly, I’m probably in a little bit better position than during the bull market, when every VC is just in a FOMO situation. They are all competing with each other. These startups or these different new blockchain projects have the upper hand. So I actually feel like maybe now that things are calmer, they can do more due diligence, there’s not as much frenzy. They can take their time, there’s not much competition. But you’re right. It’s been slower for a while, but I think it’s actually finally starting to pick up a little bit.
Levin: In the wake of FTX, are US regulators more focused on cryptocurrencies than before?
Shin: For sure. For sure. Shortly after the FTX crash, I think there was, in a way, almost an overreaction against cryptocurrencies, as people didn’t fully understand that it was a fraud. You know, fraud can happen in any industry, no matter what industry you operate in. And so I think there was almost this reaction of, “Oh, Sam Bankman-Fried was bad, so cryptocurrencies are bad.” .” But I think people are starting to understand that it’s pretty much the same thing as saying Bernie Madoff has been negative, so you should avoid the stock market or the stock market is negative. And so I saw that actually, after that overreaction now, we’re seeing a little bit of a step back. There was a point where it almost seemed like cryptocurrencies were going to become quite politicized, where Democrats were largely going to be against it. Now we see that there is no uniform reaction between them. However, we are seeing a slight generation gap among Democrats, where younger Democratic politicians are more pro-cryptocurrency, and at least some, not all, but some of the older ones are less so.
Levin: Interesting. And then, very quickly, for Republicans, how does this play out with their attitude towards cryptocurrencies post-FTX?
Shin: So I would say that Republicans more generally tend to be a little more informed. There are so many Democratic politicians who are extremely knowledgeable [U.S. Reps.] Ro Khanna [of California] and Richie Torres [of New York], I mean, I don’t want to discredit any of them at all. But it seems likely because bitcoin started out somewhat associated with this libertarian movement. And bitcoin is the oldest and was the original cryptocurrency. So I think maybe just the sheer number of informed Republicans is greater, and so I think they didn’t necessarily get to that state of hyperreactivity right after the FTX collapse.
Levin: What good things are happening in the crypto space right now? It looks like there is a high profile IPO that could happen in the near future.
Shin: Yes, I guess maybe Circle launched, which runs a well-regulated stablecoin called USDC – and a stablecoin is a cryptocurrency whose value is pegged to the value of something else, in this case, the value of the US dollar, like in fact, frankly, most stablecoins are. They are one of those companies where the entrepreneur has had multiple successful ventures so far. He’s older, a little more experienced. They have definitely followed the path of compliance. They have very well-known and respectable partners. And so, frankly, right now, especially for them, I’m sure it’s a great deal The Treasury, you know, pays a lotand do not have to pay interest to customers using USDC. And so, if they’re backing their USDC issuance with things like, you know, buying Treasuries and the like, they’re just making this interest themselves. And so I think it’s a pretty healthy business for them. And I guess it’s the kind of company that’s ripe for, you know, having an IPO.
Levin: What has the cryptocurrency industry learned since FTX?
Shin: One of the lessons that I think the crypto community has really learned from the whole debacle with FTX and Sam Bankman-Fried is that Sam’s empire was a centralized empire. And what I mean by that is the crypto community is really focused on creating, you know, what they say are decentralized applications, meaning there’s no single point of failure, there’s no one entity that has checking out whatever this new product or service would be offered on the Internet. And what he was building was something where it was pretty much what they see as the old model, where there was a company and it was responsible. And, you know, one of the things that actually hastened his downfall, that the mainstream may not be aware of, is that in the month before FTX collapsed, Sam had supported a bill in Congress, and it actually looked like that it was going well. become law. And the crypto community ended up turning against him when they realized that the way the law was structured would favor centralized players and cryptocurrencies over decentralized players. And so, frankly, the whole community turned against him. And so after the crash, I noticed that I would talk to entrepreneurs, they would talk about how they were doubling down and decentralizing. Personally I think this is where the industry will focus its attention.
You can read more of Laura Shin’s coverage of the SBF trial – and she has a lot of it – Here.
If you’re still a little confused about how and why cryptocurrencies exist, I highly recommend Bloomberg Businessweek “The history of cryptocurrencies,” a great long read by financial journalist Matt Levine (no relation).
And if you want a taste of the weirdness that comes when tens of thousands of bitcoin true believers gather in the same place, you can check it out my report from Bitcoin 2023, The largest bitcoin convention in North America, which took place in Miami earlier this year.
Tech
Harvard Alumni, Tech Moguls, and Best-Selling Authors Drive Nearly $600 Million in Pre-Order Sales
BlockDAG Network’s history is one of innovation, perseverance, and a vision to push the boundaries of blockchain technology. With Harvard alumni, tech moguls, and best-selling authors at the helm, BlockDAG is rewriting the rules of the cryptocurrency game.
CEO Antony Turner, inspired by the successes and shortcomings of Bitcoin and Ethereum, says, “BlockDAG leverages existing technology to push the boundaries of speed, security, and decentralization.” This powerhouse team has led a staggering 1,600% price increase in 20 pre-sale rounds, raising over $63.9 million. The secret? Unparalleled expertise and a bold vision for the future of blockchain.
Let’s dive into BlockDAG’s success story and find out what the future holds for this cryptocurrency.
The Origin: Why BlockDAG Was Created
In a recent interview, BlockDAG CEO Antony Turner perfectly summed up why the market needs BlockDAG’s ongoing revolution. He said:
“The creation of BlockDAG was inspired by Bitcoin and Ethereum, their successes and their shortcomings.
If you look at almost any new technology, it is very rare that the first movers remain at the forefront forever. Later incumbents have a huge advantage in entering a market where the need has been established and the technology is no longer cutting edge.
BlockDAG has done just that: our innovation is incorporating existing technology to provide a better solution, allowing us to push the boundaries of speed, security, and decentralization.”
The Present: How Far Has BlockDAG Come?
BlockDAG’s presale is setting new benchmarks in the cryptocurrency investment landscape. With a stunning 1600% price increase over 20 presale lots, it has already raised over $63.9 million in capital, having sold over 12.43 billion BDAG coins.
This impressive performance underscores the overwhelming confidence of investors in BlockDAG’s vision and leadership. The presale attracted over 20,000 individual investors, with the BlockDAG community growing exponentially by the hour.
These monumental milestones have been achieved thanks to the unparalleled skills, experience and expertise of BlockDAG’s management team:
Antony Turner – Chief Executive Officer
Antony Turner, CEO of BlockDAG, has over 20 years of experience in the Fintech, EdTech, Travel and Crypto industries. He has held senior roles at SPIRIT Blockchain Capital and co-founded Axona-Analytics and SwissOne. Antony excels in financial modeling, business management and scaling growth companies, with expertise in trading, software, IoT, blockchain and cryptocurrency.
Director of Communications
Youssef Khaoulaj, CSO of BlockDAG, is a Smart Contract Auditor, Metaverse Expert, and Red Team Hacker. He ensures system security and disaster preparedness, and advises senior management on security issues.
advisory Committee
Steven Clarke-Martin, a technologist and consultant, excels in enterprise technology, startups, and blockchain, with a focus on DAOs and smart contracts. Maurice Herlihy, a Harvard and MIT graduate, is an award-winning computer scientist at Brown University, with experience in distributed computing and consulting roles, most notably at Algorand.
The Future: Becoming the Cryptocurrency with the Highest Market Cap in the World
Given its impressive track record and a team of geniuses working tirelessly behind the scenes, BlockDAG is quickly approaching the $600 million pre-sale milestone. This crypto powerhouse will soon enter the top 30 cryptocurrencies by market cap.
Currently trading at $0.017 per coin, BlockDAG is expected to hit $1 million in the coming months, with the potential to hit $30 per coin by 2030. Early investors have already enjoyed a 1600% ROI by batch 21, fueling a huge amount of excitement around BlockDAG’s presale. The platform is seeing significant whale buying, and demand is so high that batch 21 is almost sold out. The upcoming batch is expected to drive prices even higher.
Invest in BlockDAG Pre-Sale Now:
Pre-sale: https://purchase.blockdag.network
Website: https://blockdag.network
Telegram: https://t.me/blockDAGnetwork
Discord: Italian: https://discord.gg/Q7BxghMVyu
No spam, no lies, just insights. You can unsubscribe at any time.
- Space and Time uses zero-knowledge proofs to ensure secure and tamper-proof data processing for smart contracts and enterprises.
- The integration facilitates faster development and deployment of Distributed Secure Services (DSS) on the Karak platform.
Karak, a platform known for its strong security capabilities, is enhancing its Distributed Secure Services (DSS) by integrating Space and Time as a zero-knowledge (ZK) coprocessor. This move is intended to strengthen trustless operations across its network, especially in slashing and rewards mechanisms.
Space and Time is a verifiable processing layer that uses zero-knowledge proofs to ensure that computations on decentralized data warehouses are secure and untampered with. This system enables smart contracts, large language models (LLMs), and enterprises to process data without integrity concerns.
The integration with Karak will enable the platform to use Proof of SQL, a new ZK-proof approach developed by Space and Time, to confirm that SQL query results are accurate and have not been tampered with.
One of the key features of this integration is the enhancement of DSS on Karak. DSS are decentralized services that use re-staked assets to secure the various operations they provide, from simple utilities to complex marketplaces. The addition of Space and Time technology enables faster development and deployment of these services, especially by simplifying slashing logic, which is critical to maintaining security and trust in decentralized networks.
Additionally, Space and Time is developing its own DSS for blockchain data indexing. This service will allow community members to easily participate in the network by running indexing nodes. This is especially beneficial for applications that require high security and decentralization, such as decentralized data indexing.
The integration architecture follows a detailed and secure flow. When a Karak slashing contract needs to verify a SQL query, it calls the Space and Time relayer contract with the required SQL statement. This contract then emits an event with the query details, which is detected by operators in the Space and Time network.
These operators, responsible for indexing and monitoring DSS activities, validate the event and route the work to a verification operator who runs the query and generates the necessary ZK proof.
The result, along with a cryptographic commitment on the queried data, is sent to the relayer contract, which verifies and returns the data to the Karak cutter contract. This end-to-end process ensures that the data used in decision-making, such as determining penalties within the DSS, is accurate and reliable.
Karak’s mission is to provide universal security, but it also extends the capabilities of Space and Time to support multiple DSSs with their data indexing needs. As these technologies evolve, they are set to redefine the secure, decentralized computing landscape, making it more accessible and efficient for developers and enterprises alike. This integration represents a significant step towards a more secure and verifiable digital infrastructure in the blockchain space.
Website | X (Twitter) | Discord | Telegram
No spam, no lies, just insights. You can unsubscribe at any time.
Iconic Italian luxury carmaker Ferrari has announced the expansion of its cryptocurrency payment system to its European dealer network.
The move, which follows a successful launch in North America less than a year ago, raises a crucial question for CFOs across industries: Is it time to consider accepting cryptocurrency as a form of payment for your business?
Ferrari’s move isn’t an isolated one. It’s part of a broader trend of companies embracing digital assets. As of 2024, we’re seeing a growing number of companies, from tech giants to traditional retailers, accepting cryptocurrencies.
This change is determined by several factors:
- Growing mainstream adoption of cryptocurrencies
- Growing demand from tech-savvy and affluent consumers
- Potential for faster and cheaper international transactions
- Desire to project an innovative brand image
Ferrari’s approach is particularly noteworthy. They have partnered with BitPay, a leading cryptocurrency payment processor, to allow customers to purchase vehicles using Bitcoin, Ethereum, and USDC. This satisfies their tech-savvy and affluent customer base, many of whom have large digital asset holdings.
Navigating Opportunities and Challenges
Ferrari’s adoption of cryptocurrency payments illustrates several key opportunities for companies considering this move. First, it opens the door to new customer segments. By accepting cryptocurrency, Ferrari is targeting a younger, tech-savvy demographic—people who have embraced digital assets and see them as a legitimate form of value exchange. This strategy allows the company to connect with a new generation of affluent customers who may prefer to conduct high-value transactions in cryptocurrency.
Second, cryptocurrency adoption increases global reach. International payments, which can be complex and time-consuming with traditional methods, become significantly easier with cryptocurrency transactions. This can be especially beneficial for businesses that operate in multiple countries or deal with international customers, as it potentially reduces friction in cross-border transactions.
Third, accepting cryptocurrency positions a company as innovative and forward-thinking. In today’s fast-paced business environment, being seen as an early adopter of emerging technologies can significantly boost a brand’s image. Ferrari’s move sends a clear message that they are at the forefront of financial innovation, which can appeal to customers who value cutting-edge approaches.
Finally, there is the potential for cost savings. Traditional payment methods, especially for international transactions, often incur substantial fees. Cryptocurrency transactions, on the other hand, can offer lower transaction costs. For high-value purchases, such as luxury cars, these savings could be significant for both the business and the customer.
While the opportunities are enticing, accepting cryptocurrency payments also presents significant challenges that businesses must address. The most notable of these is volatility. Cryptocurrency values can fluctuate dramatically, sometimes within hours, posing potential risk to businesses that accept them as payment. Ferrari addressed this challenge by implementing a system that instantly converts cryptocurrency received into traditional fiat currencies, effectively mitigating the risk of value fluctuations.
Regulatory uncertainty is another major concern. The legal landscape surrounding cryptocurrencies is still evolving in many jurisdictions around the world. This lack of clear and consistent regulations can create compliance challenges for companies, especially those operating internationally. Companies must remain vigilant and adaptable as new laws and regulations emerge, which can be a resource-intensive process.
Implementation costs are also a significant obstacle. Integrating cryptocurrency payment systems often requires substantial investment in new technology infrastructure and extensive staff training. This can be especially challenging for small businesses or those with limited IT resources. The costs are not just financial; a significant investment of time is also required to ensure smooth implementation and operation.
Finally, security concerns loom large in the world of cryptocurrency transactions. While blockchain technology offers some security benefits, cryptocurrency transactions still require robust cybersecurity measures to protect against fraud, hacks, and other malicious activity. Businesses must invest in robust security protocols and stay up-to-date on the latest threats and protections, adding another layer of complexity and potential costs to accepting cryptocurrency payments.
Strategic Considerations for CFOs
If you’re thinking of following in Ferrari’s footsteps, here are the key factors to consider:
- Risk Assessment: Carefully evaluate potential risks to your business, including financial, regulatory, and reputational risks.
- Market Analysis: Evaluate whether your customer base is significantly interested in using cryptocurrencies for payments.
- Technology Infrastructure: Determine the costs and complexities of implementing a cryptographic payment system that integrates with existing financial processes.
- Regulatory Compliance: Ensure that cryptocurrency acceptance is in line with local regulations in all markets you operate in. Ferrari’s gradual rollout demonstrates the importance of this consideration.
- Financial Impact: Analyze how accepting cryptocurrency could impact your cash flow, accounting practices, and financial reporting.
- Partnership Evaluation: Consider partnering with established crypto payment processors to reduce risk and simplify implementation.
- Employee Training: Plan comprehensive training to ensure your team is equipped to handle cryptocurrency transactions and answer customer questions.
While Ferrari’s adoption of cryptocurrency payments is exciting, it’s important to consider this trend carefully.
A CFO’s decision to adopt cryptocurrency as a means of payment should be based on a thorough analysis of your company’s specific needs, risk tolerance, and strategic goals. Cryptocurrency payments may not be right for every business, but for some, they could provide a competitive advantage in an increasingly digital marketplace.
Remember that the landscape is rapidly evolving. Stay informed about regulatory changes, technological advancements, and changing consumer preferences. Whether you decide to accelerate your crypto engines now or wait in the pit, keeping this payment option on your radar is critical to navigating the future of business transactions.
Was this article helpful?
Yes No
Sign up to receive your daily business insights
The world’s largest cryptocurrency, Bitcoin (BTC), suffered a significant price decline on Wednesday, falling below $65,000. The decline coincides with a broader market sell-off that has hit technology stocks hard.
Cryptocurrency Liquidations Hit Hard
CoinGlass data reveals a surge in long liquidations in the cryptocurrency market over the past 24 hours. These liquidations, totaling $220.7 million, represent forced selling of positions that had bet on price increases. Bitcoin itself accounted for $14.8 million in long liquidations.
Ethereum leads the decline
Ethereal (ETH), the second-largest cryptocurrency, has seen a steeper decline than Bitcoin, falling nearly 8% to trade around $3,177. This decline mirrors Bitcoin’s price action, suggesting a broader market correction.
Cryptocurrency market crash mirrors tech sector crash
The cryptocurrency market decline appears to be linked to the significant losses seen in the U.S. stock market on Wednesday. Stock market listing The index, heavily weighted toward technology stocks, posted its sharpest decline since October 2022, falling 3.65%.
Analysts cite multiple factors
Several factors may have contributed to the cryptocurrency market crash:
- Tech earnings are underwhelming: Earnings reports from tech giants like Alphabet are disappointing (Google(the parent company of), on Tuesday, triggered a sell-off in technology stocks with higher-than-expected capital expenditures that could have repercussions on the cryptocurrency market.
- Changing Political Landscape: The potential impact of the upcoming US elections and changes in Washington’s policy stance towards cryptocurrencies could influence investor sentiment.
- Ethereal ETF Hopes on the line: While bullish sentiment around a potential U.S. Ethereum ETF initially boosted the market, delays or rejections could dampen enthusiasm.
Analysts’ opinions differ
Despite the short-term losses, some analysts remain optimistic about Bitcoin’s long-term prospects. Singapore-based cryptocurrency trading firm QCP Capital believes Bitcoin could follow a similar trajectory to its post-ETF launch all-time high, with Ethereum potentially converging with its previous highs on sustained institutional interest.
Rich Dad Poor Dad Author’s Prediction
Robert Kiyosaki, author of the best-selling Rich Dad Poor Dad, predicts a potential surge in the price of Bitcoin if Donald Trump is re-elected as US president. He predicts a surge to $105,000 per coin by August 2025, fueled by a weaker dollar that is set to boost US exports.
BTC/USD Technical Outlook
Bitcoin price is currently trading below key support levels, including the $65,500 level and the 100 hourly moving average. A break below the $64,000 level could lead to further declines towards the $63,200 support zone. However, a recovery above the $65,500 level could trigger another increase in the coming sessions.
“You Only Need 0.02 BTC to Retire Forever – Here’s Why” – Willy Woo
Inside the Banana Zone: The Cryptocurrency Trend Everyone’s Talking About – Raoul Pal
DIGITAL BLOCK! You Live in a Virtual Prison Without Knowing It: The 2025 WARNING by Whitney Webb
“Many Bitcoin Investors Will Be Multimillionaires Before 2030” – Michael Saylor
Raoul Pal – “This is a huge achievement! This is where I see Bitcoin and cryptocurrencies by 2030”
Leeds hospitals trust says finances are “critical” amid £110m deficit
Modiv Industrial to release Q2 2024 financial results on August 6
Volta Finance Limited – Director/PDMR Shareholding
Inventiva reports 2024 First Quarter Financial Information¹ and provides a corporate update
🏴☠️ Pump.Fun operated by Insider Exploit
“You Only Need 0.02 BTC to Retire Forever – Here’s Why” – Willy Woo
Inside the Banana Zone: The Cryptocurrency Trend Everyone’s Talking About – Raoul Pal
DIGITAL BLOCK! You Live in a Virtual Prison Without Knowing It: The 2025 WARNING by Whitney Webb
“Many Bitcoin Investors Will Be Multimillionaires Before 2030” – Michael Saylor
Raoul Pal – “This is a huge achievement! This is where I see Bitcoin and cryptocurrencies by 2030”
-
News8 months agoLeeds hospitals trust says finances are “critical” amid £110m deficit
-
News6 months agoModiv Industrial to release Q2 2024 financial results on August 6
-
News6 months agoVolta Finance Limited – Director/PDMR Shareholding
-
News8 months agoInventiva reports 2024 First Quarter Financial Information¹ and provides a corporate update
-
DeFi8 months ago🏴☠️ Pump.Fun operated by Insider Exploit
-
News6 months agoApple to report third-quarter earnings as Wall Street eyes China sales
-
News6 months agoNumber of Americans filing for unemployment benefits hits highest level in a year
-
Videos8 months ago“We will enter the ‘banana zone’ in 2 WEEKS! Cryptocurrency prices will quadruple!” – Raoul Pal
-
Tech8 months agoBitcoin’s Correlation With Tech Stocks Is At Its Highest Since August 2023: Bloomberg ⋆ ZyCrypto
-
Tech8 months agoEverything you need to know
-
Markets8 months agoWhale Investments in Bitcoin Hit $100 Billion in 2024, Fueling Insane Investor Optimism ⋆ ZyCrypto
-
Videos8 months agoHistory will be made tomorrow! The Cryptocurrency Market Will Absolutely Crash – Raoul Pal