For all the gloom and doom in the cryptocurrency market these days, our industry continues to make inroads into mainstream tech. This week, I had the pleasure of attending the sold-out Collision Conference in Toronto, and crypto was featured prominently. During the event, I got to moderate three panels, including two that were crypto-focused. The fact that the biggest tech conference in North America is letting me talk cryptocurrency after a six-month bloodbath proves there’s more to the industry than just price. And, I’m not saying the price isn’t important — but context is everything.
This week’s Crypto Biz gives you a taste of Collision Conference 2022 and also draws your attention to the latest funding and business news from the world of blockchain.
During Collision, I sat down with KPMG Canada’s crypto team to talk about the firm’s recent foray into digital assets. If you recall, I got really excited in February when the KPMG Canada announced it had added Bitcoin (BTC) and Ether (ETH) to its corporate treasury. The firm’s decision to adopt digital assets didn’t come on a whim — it was directed by an internal governance council that did its due diligence before recommending crypto treasuries. The Canadian arm of the Big Four accounting firm remains bullish despite recent market turmoil.
I reported last week that crypto-focused hedge fund Three Arrows Capital (3AC) was inching closer to insolvency after a series of leveraged bets turned sour. We knew there would be contagion risk — we just didn’t know how much. Well, this week, trading platform Voyager Digital took out a loan from Alamada Research to cover losses tied to its exposure to 3AC. Specifically, Voyager borrowed 15,000 BTC from Alameda, which is roughly equivalent to the 15,250 BTC owed to it by 3AC. Voyager has requested that 3AC repay its outstanding debts by Monday, or else it’ll pursue legal action.
Crypto has gifted us with a lot of nasty headlines over the past six months. But, during that time, billions of dollars in venture capital were pouring into the industry. This week, crypto brokerage FalconX announced it had raised $150 million at a valuation of $8 billion in a Series D round that was led by Singapore sovereign wealth fund GIC. The company’s valuation has basically doubled from August when it concluded its Series C funding round. As is always the case, when everyone seems to be panicking, smart money investors are busy accumulating.
Zuckerberg’s Meta, which is the parent company of Facebook and Instagram, announced that it’ll begin testing nonfungible tokens (NFTs) on Instagram Stories using Spark AR Studio. “We’re expanding our test so more creators around the world can display their NFTs on Instagram,” the CEO said. “Creators and collectors will be able to share their digital collectibles across Facebook and Instagram after we begin rolling out the feature on Facebook with select US creators at a later date.” Social media is about to undergo a major transformation. We’ll see whether Zuckerberg’s company will maintain its dominance during the transition to Web3 and the Metaverse.
I wasn’t able to attend this week’s Market Report, but my colleagues Benton Yuan, Marcel Pechman and Yashu Gola were able to carry on without me. In addition to giving you the latest trading insights, they discussed Bitcoin’s prospects in the event of a global recession. You can watch the full replay below.
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Individuals engaging in airdrop squatting are fabricating accounts across platforms with the sole intent of harvesting airdrop tokens, potentially depriving genuine users of their fair share.
CatherineChinese unicorn Hashkey Capital, in collaboration with Bosera Funds, announces the trading commencement of their Bitcoin and Ethereum spot ETFs on April 30.
WeiliangTigran Gambaryan, a Binance executive, faces prolonged detention in Nigeria due to postponed bail hearing and impending trial on money laundering charges. His family and experts argue he's being unfairly targeted, potentially as a scapegoat for Nigeria's economic struggles, while Binance's compliance practices are under scrutiny.
AnaisSince adopting crypto donations, two out of the three leading charities based in the US have amassed over $2 billion in contributions since the beginning of the year.
KikyoCoinbase launches $15M ad campaign across major networks, showcasing crypto's simplicity and efficiency compared to traditional finance, using a unique pizza analogy.
AlexMeta AI's integration into Facebook, Instagram, and WhatsApp sparks frustration among users due to disruptive changes and the inability to disable it, raising concerns about user control and privacy. Despite Meta's investment in AI technology and its benefits, mixed reactions highlight the need for platforms to prioritise user experience and transparency in AI integration.
WeatherlyNubank enhances its app, offering Bitcoin, Ethereum, and Solana transactions, signaling a major advance in integrating cryptocurrencies into banking services.
AlexA well-known financial blog suggests that the significant increase in capital outflows from China has been a key catalyst driving the continuous surge in Bitcoin prices since 2015.
BrianThe allure of meme coins seems irresistible to the hedge fund industry. Last December, when Dogwifhat (WIF) became the hottest token in the cryptocurrency space, Stratos, whose limited partners include venture capitalists Marc Andreessen and Chris Dixon, was not the only hedge fund to venture into meme coins.
AlexZKasino faces backlash for misusing $33M in funds, misleading investors with unfulfilled technology promises, leading to accusations of fraud and distancing by investors.
Miyuki