Cryptocurrency market Developing despite FTX
2022.12.13 10:40
Cryptocurrency market Developing despite FTX
Budrigannews.com – Numerous individuals have questioned the impact of FTX’s sudden failure on the cryptocurrency ecosystem. For instance, it is still uncertain whether crypto hotspots will continue to thrive or whether innovation will decline.
Industry leaders in crypto-friendly regions believe that the FTX failure will not hinder innovation, despite the fact that it may be too soon to fully comprehend the impact.
For instance, ecosystem activity continues to occur in Dubai, which has been dubbed one of the most innovative regions for the development of cryptocurrencies and blockchains. The Algorand Foundation, which is responsible for the development of the Alogrand blockchain, recently held its second annual Decipher conference in Dubai. The event took place on November 29 and 30, just a few weeks after former CEO of FTX Sam Bankman-Fried announced bankruptcy.
Decipher still attracted over 1,500 attendees from all over the world, despite the fact that a number of discussions revolved around the FTX collapse. Algorand Foundation CEO Staci Warden told Cointelegraph that the United Arab Emirates is still a growing blockchain capital. This is powered by areas of strength for a base in the district, a profound culture of development, and a different, drew in local area,” she said.
It has been reported that the Crown Prince of Dubai intends to invest $4 billion to support the expansion of the region’s cryptocurrency ecosystem, despite the impressive attendance at Decipher. Given that the UAE already has more than 1,000 businesses in the metaverse and blockchain industries, this is expected to add 40,000 jobs to the economy over the next five years.
According to Nilesh Khaitan, founder of AcmeDAO, a Dubai-based platform that facilitates on-chain transactions for decentralized applications, reports that the FTX collapse is affecting crypto hotspots worldwide may not necessarily apply to Dubai. He stated,
“It’s possible that Dubai’s crypto community has been unaffected in particular, or has even seen growth, due to increased regulatory uncertainty in other regions. Dubai may continue to see growth in its crypto community moving forward, particularly if the city offers a more attractive regulatory environment compared to other regions.”
Despite Khaitan’s continued optimism regarding Dubai’s potential, he emphasized the need for regulatory clarity between the UAE Free Zone regions issuing crypto-specific licenses and the central bank of the UAE.
“This incorporates the foundation of an administrative sandbox for crypto new businesses and business visionaries from the Virtual Resource Administrative Power (VARA). “He stated that the government’s coordinated, strategic efforts to promote Dubai as a favorable destination for crypto businesses and innovation could overcome these obstacles.
Recent positive sentiment has been reported from other Middle Eastern crypto hotspots. For instance, Tel Aviv, a well-known startup hub, continues to place a significant emphasis on expanding the blockchain ecosystem as a whole.
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Cointelegraph was informed by Or Dadosh, co-founder and CEO of Ironblocks, a Web3 threat detection and prevention platform, that in Israel, there is typically a greater interest in blockchain technology itself and the development of products based on these networks.
When it comes to Web3 and blockchain, he stated, “the community here is less driven by crypto trading and speculations around token performance.”
This is by all accounts the case, as various network safety organizations were available at the Israel Crypto Gathering (ICC), which occurred in Tel Aviv on Dec. 7. ICC’s organizer, Ariel Shapira, told Cointelegraph that even though the event was smaller than last year, hundreds of people showed up.
“Events like the FTX crash may temporarily affect crypto prices and the ability of projects to raise funds, but they do not diminish the industry’s optimism regarding blockchain as a technology. Cryptocurrency enthusiasts are aware that this technology will change everything. They are aware that the bear market is only brief,” he stated.
Given this, Collider Ventures principle Eylon Aviv told Cointelegraph that he thinks the Tel Aviv crypto community will actually see an acceleration in growth. Collider Ventures is a venture capital firm that focuses on Web3 companies. Given that the founders are now specifically targeting issues resulting from the FTX fallout, it’s possible that the saying “no such thing as bad publicity” is accurate.
Crypto hotspots in the United States appear to be expanding, alongside Dubai and Tel Aviv. Austin, Texas, for instance, continues to attract numerous Bitcoin (BTC) mining businesses. This was evident during the second Texas Blockchain Summit, which took place in Austin from November 17 to 18 for the second time.
Although attendance at the Texas Blockchain Summit was lower than it had been the previous year, there was evident optimism for the crypto industry’s future. The favorable attitude that Texas Senator Ted Cruz took toward Bitcoin may have contributed to this. Cruz said at the summit that he likes Bitcoin “because the government can’t control it,” and he also said that he buys Bitcoin every week.
According to Lee Bratcher, summit organizer and president of the Texas Blockchain Council, several businesses in Austin advocate for customer self-custody. As a result, Bratcher is of the opinion that the proportion of crypto holders in Austin who store their assets in a hot wallet or hardware wallet is probably higher.
He made the observation that “the number of people building great Bitcoin and digital asset companies in Austin insulates it a bit from the chaos in the centralized exchange ecosystem.”
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Miami, one of the crypto hubs with the fastest growth rate in the world, is also making progress. In particular, NFT artists from all over the world continue to flock to Miami as their primary destination. For instance, a number of NFT works were on display at the most recent Art Basel in Miami.
The FTX collapse does appear to have an impact on Miami’s spending habits, which is notable. Jumana Al Darwish, a Web3 investor and serial entrepreneur, told Cointelegraph that, despite the fact that this year’s Art Basel Miami featured both established and upcoming artists, galleries were sticking to their guns when it came to the works they had on display. She stated,
“With post-pandemic monetary recuperation set up and crypto winter being going full bore combined with the most recent FTX outrage, one could detect that guests were more moderate versus the motivation purchasing conduct that had occurred in earlier years.”
However, a recent Financial Times report has also suggested that Miami nightclubs have suffered financial losses as a result of FTX’s failure, so this shouldn’t come as a surprise.
It’s also interesting to note that crypto-friendly cities like San Francisco are gaining popularity. Edge and Node, a Web3 software development company, recently opened a Web3 house in San Francisco to provide startups and entrepreneurs with a coworking space, according to Tegan Kline, co-founder and head of business at Edge and Node:
“Some U.S. hubs like Austin and Miami have taken away from San Francisco, but the startup ethos of San Francisco will never die. It is one of the few places in the world where you can talk about your crazy startup idea at dinner and they don’t kick you out, but rather offer to help — be it by financing, looking for talent, etc.”
Additionally, the Web3 industry is expanding in places like Singapore. According to Oliver Xie, CEO of the decentralized insurance platform InsurAce, the collapse of FTX has had an impact on Singapore’s crypto ecosystem, but Web3 is now receiving more attention.
According to him, “within the government, there are signs of a pivot away from crypto.” For instance, “the Deputy Prime Minister in a recent parliament hearing also said Singapore will be focusing on real innovations with new Web3 technologies rather than seeking to become a global crypto trading hub.”
Despite recent events, it is notable that crypto-friendly cities continue to thrive, but there are still a number of obstacles that could slow growth. For instance, these ecosystems can only progress if there is clarity in regulations.
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According to Yoav Tzucker, chief marketing officer at Collider Ventures, regulation remains a problem for the Israeli ecosystem. Tzucker is still of the opinion that there is a dearth of regulation, despite the fact that the chief economist of Israel recently compiled a list of suggestions for how policymakers should deal with digital asset laws.
“I think that this is the main barrier for Israeli founders in the Web3 ecosystem.”
The Virtual Asset Regulatory Authority (VARA) and laws governing virtual asset regulation have been established in Dubai, but regulatory clarity still needs to be improved. Web3 platform founder and CEO Linda Adami told Cointelegraph that while Binance and Kraken have been granted licenses in Dubai, more local businesses need to be built from the ground up.
She asked, “What will be the future Dubai-grown Web3 native success stories?” “Similarly to how Emirates Airlines established Dubai as a tourism and service hub,” she said.
Bratcher shared that emerging crypto cities like Austin still lack the capital flow seen in cities like New York and San Francisco, despite the fact that crypto regulations remain a hot topic of debate within the United States:
“Austin needs a continuation of the inflow of venture capitalists and capital from Silicon Valley in order to further establish itself as the epicenter for the Web3 digital asset ecosystem.”
Even though this might be the case, Klein said that San Francisco’s rising rates of crime and homelessness might be driving talent away. However, she states, “We have many events and initiatives happening at the Edge and Node House of Web3 regarding how we can use Web3 tools to work toward solutions to help heal San Francisco.” She believes that Edge and Node’s Web3 house could be a solution to this issue.
