FTX updates...

PLUS: Chris Dixon and the optimistic case for crypto

Author

Hubert Trinkunas
February 01, 2024

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In a strategic move amid an escalating legal showdown with the US regulator, Coinbase ropes in former UK Chancellor George Osborne, banking on his multifaceted expertise to navigate the complexities of the cryptocurrency market and regulatory landscapes​.

Here are the 3 top stories in web3 you should know about this week…

FTX expects to repay crypto customers in full

In brief: FTX now pledges to fully reimburse crypto customers affected by its collapse during bankruptcy proceedings. This surprising commitment offers a glimmer of hope to those who suffered losses in one of the biggest financial scandals in U.S. history.

  • FTX's rise and fall: FTX, led by founder Sam Bankman-Fried, was once a cryptocurrency heavyweight but crumbled when exposed as a major fraud scheme, leading to billions in investor losses and a Chapter 11 bankruptcy filing.

  • A brighter prospect: In a recent court hearing, FTX announced its expectation to fully repay crypto customers during the bankruptcy liquidation process, signaling a potential resolution for millions impacted.

  • Relaunch plans abandoned: Despite earlier considerations, FTX has abandoned plans to resurrect the platform under new ownership, as no buyers expressed interest.

  • Staggering claims: The Wall Street Journal reported over 36,000 customer claims totaling $16 billion, underscoring the magnitude of the challenge faced by FTX.

Why it matters: This development sheds light on the turbulent nature of the cryptocurrency industry and offers a glimmer of hope for those seeking restitution in the wake of a major crypto scandal.

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Visa enables crypto withdrawals on debit cards in 145 countries

In brief: Visa has partnered with Transak to offer crypto withdrawals and payments via Visa Direct. Users can now convert cryptocurrencies, including Bitcoin, directly from their wallets like MetaMask to Visa debit cards. This integration facilitates immediate crypto-to-fiat exchanges at 130 million merchant locations worldwide.

  • Real-time conversion: Visa Direct's collaboration with Transak enables swift conversion of crypto holdings into fiat, bridging the gap between traditional and crypto finance.

  • Global accessibility: Users in 145 countries can convert over 40 cryptocurrencies to fiat without relying on centralized exchanges, making crypto more accessible.

  • Mainstream adoption: The partnership promotes the mainstream acceptance and usability of cryptocurrencies, especially benefiting MetaMask users.

  • Compliance assurance: Transak ensures compliance with Know-Your-Customer and Anti-Money Laundering regulations, providing a secure and legal platform for these transactions.

Why it matters: Visa's expansion into the crypto space signifies its commitment to adapting to the changing financial landscape. This partnership enhances convenience and accessibility for crypto users, showcasing the growing convergence of crypto and traditional financial systems.

Chris Dixon and the optimistic case for crypto

  • Chris Dixon, in his book "Read Write Own," offers an optimistic view that blockchain technology can address the issues caused by Big Tech monopolies and rebuild the internet.

  • Dixon compares the evolution of blockchain to other revolutionary technologies like AI and electric cars, which took decades to reach mainstream adoption but eventually succeeded.

  • He points out that blockchain has improved significantly in recent years, with developers making it more user-friendly and efficient.

  • Dixon highlights the organic growth of blockchain projects like Ethereum, which has achieved a substantial user base and market capitalization without traditional marketing campaigns.

  • The enthusiasm and staying power of blockchain communities, even for seemingly frivolous tokens like Dogecoin, contribute to the technology's potential for a better internet.

  • Despite the skepticism often associated with journalism, Dixon's optimism suggests that blockchain could have a transformative impact on the internet sooner than expected.

Why it matters: Chris Dixon's optimistic outlook on blockchain technology challenges the status quo of Big Tech dominance and offers hope for a more decentralized and user-centric internet. His perspective encourages exploration and experimentation with blockchain solutions, potentially leading to innovative and positive changes in the digital landscape.

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