Cryptocurrency

Circle’s SPAC flop does the public market a favor

5 Dec 2022

The stablecoin that CEO Jeremy Allaire runs is meant to have a predictable, steady price. But the company, which scrapped a merger with a blank-check firm, defies valuation. That could change, but only if the crypto storm calms and Circle can remain profitable until then.

Flummoxed Congress dims faith in post-FTX fixes

1 Dec 2022

The first public hearing since the crypto exchange’s collapse laid bare Capitol Hill’s collective ignorance. A lack of new laws leaves agencies unfit to oversee digital currencies. It’s a steep learning curve to protect investors without the industry just writing its own rules.

Crypto winter highlights gold’s warming qualities

25 Nov 2022

The collapse of the FTX cryptocurrency exchange has institutional investors fleeing and regulators closing in. True believers argue their vision of decentralised digital money still holds. In a less dystopian world, the yellow metal may have more appeal, says Edward Chancellor.

FTX collapse consigns crypto to fringes of finance

24 Nov 2022

Sam Bankman-Fried’s failed crypto exchange is a huge blow to the ailing sector. In this Viewsroom podcast, Breakingviews columnists discuss how firewalls helped protect banks, how the saga will embolden regulators, and what the future looks like for digital currencies.

Stablecoins fall few cents short of respectability

23 Nov 2022

FTX’s collapse highlighted what happens when funds supposed to be in one place turn up in another, or nowhere at all. That will reignite the debate on how to regulate digital assets. Out in front are stablecoins, which have a way to go if they’re to live up to their name.

Hong Kong’s crypto push sets up race to bottom

22 Nov 2022

The Asian city reiterated its plan to allow retail access to regulated virtual assets, despite FTX’s blow-up and a sweeping ban in China. It’s not a big departure from what’s offered in the U.S. and Europe but a rivalry with Singapore to lure capital and talent could make things messy.

Coinbase’s problems more than contagion

21 Nov 2022

The crypto exchange’s boss Brian Armstrong wants to reassure investors that digital currencies are safe. That makes sense: Bitcoin and other coins are its lifeblood. But the industry collapse is only one problem. Coinbase took on debt before its business model had been proven.

FTX flop evokes history’s great financial swindles

18 Nov 2022

Investment bubbles are generally accompanied by fraud. The collapse of Sam Bankman-Fried’s cryptocurrency exchange has elements of past scandals, from Dutch tulip mania to Bernie Madoff. Unusually, the 30-year-old seems to have previewed his own downfall, says Edward Chancellor.

FTX affords a turning point in venture governance

17 Nov 2022

New CEO John Ray uncovered patchy balance sheets and signs of looting at the bust crypto exchange. What he calls “a complete failure of corporate controls” means users may not get repaid. Formidable backers like Temasek and Sequoia would be crazy to make the same mistakes again.

Crypto watchdogs have a giant offshore problem

17 Nov 2022

FTX’s collapse should trigger tougher oversight of digital-asset groups in the Unites States and elsewhere. Yet big players, like Binance and the $40 bln decentralised-finance system, may stay out of reach. Clearer rules could bring more business onshore, but not all of it.

Crypto readies itself for a post-FTX hose-down

15 Nov 2022

The collapse of Sam Bankman-Fried’s empire exposed the vulnerabilities of a vast, unregulated world of digital finance. Rivals like Circle CEO Jeremy Allaire hope to prove there’s a safer side of crypto worth saving. He presents his case in this episode of The Exchange podcast.

Sam Bankman-Fried did financial system a favour

14 Nov 2022

The curly-haired cryptocurrency kingpin pushed regulators and politicians to legitimise assets like bitcoin. A few more years and his now-bankrupt exchange FTX would have burrowed deeper into mainstream finance, amplifying the damage. His downfall sends the process into reverse.

Capital Calls: Twitter ads, Supervoting stock

11 Nov 2022

Concise views on global finance: Elon Musk is giving big brands an easy out – and a drain on advertising is harder for Twitter to overcome than Facebook; a dual-class share structure enabled the ousted CEO of TuSimple to team up with his co-founder and sack the board.

FTX crash is old lesson for financial newcomers

9 Nov 2022

The crypto exchange, once valued at $32 bln, hangs in the balance after rival Binance scrapped a rescue bid. Customers could face losses; a prolonged selloff could ensue. While it may not comfort founder Sam Bankman-Fried, the cryptoverse will be better off for FTX’s agonies.

Crypto’s JPMorgan mutates into Bear Stearns

8 Nov 2022

Sam Bankman-Fried’s FTX, last valued at $32 bln, provisionally agreed to sell its non-U.S. business to rival exchange Binance. After playing industry lifesaver, he’s now being rescued. The reversal will sting backers like SoftBank and exposes the immaturity of digital currencies.

NFTs may not get back up off the canvas

7 Nov 2022

Global non-fungible token sales have dropped over 90% since January. Enthusiasts remain hopeful that NFTs can branch into new, more durable applications that are less like trinkets. But with rate rises upending niche assets, don’t bet on it.

Lisbon tech schmooze takes baby steps to reality

4 Nov 2022

Amid 2022’s cratering valuations, venture capitalists attending the Portugal-based Web Summit are appropriately more cautious about new startups. Yet crypto crowds are still out in force. That’s despite the need for tech cash to focus more on solving problems like climate change.

Kim Kardashian makes an example out of the SEC

3 Oct 2022

Imposing a $1.3 mln fine on the Instagram star marks an attempt to warn other crypto promoters. It’s unclear how much impact such social-media influencers have on the market, though. Without real teeth, SEC Chair Gary Gensler risks exposing his lack of tools to regulate properly.

Ethereum energy cut necessary but insufficient

15 Sep 2022

The blockchain used to trade ether revamped its process of awarding new coins in an effort to manage power usage. The new plan, which forces people to offer collateral to facilitate transactions and earn new coins, is smart. But it doesn’t address the speculative nature of crypto.

Capital Calls: Crypto fans, Disney’s magic bundle

1 Sep 2022

Concise views on global finance: MicroStrategy founder Michael Saylor is enthusiastic about bitcoin, and its “freedom and self-sovereignty”. A lawsuit over his alleged tax avoidance shows digital limits. Meanwhile, Disney looks to channel the synergistic Force.