The Impact of Multifunction Crypto-Asset Intermediaries on Market Stability Post-FTX Collapse

The Financial Stability Board (FSB) report, along with other sources, offers significant insights into the impact of multifunction crypto-asset intermediaries (MCIs) and key market events, such as the collapse of FTX in November 2022 and the crypto-asset market turmoil in May/June 2022. These events have underscored the crucial role and potential risks posed by MCIs in the crypto-asset markets.

MCIs are firms or groups of affiliated firms providing a wide range of services and products centered around a trading platform. Many engage in proprietary trading and investment, while some issue, promote, and distribute crypto-assets, including stablecoins. The structural vulnerabilities they can exacerbate in the markets include issues related to leverage and liquidity mismatch. Their vulnerabilities are akin to traditional finance, such as technology and operational vulnerabilities, leverage, liquidity mismatch, and interconnections. Some combinations of functions within a single MCI can amplify these vulnerabilities, especially in the absence of effective controls, operational transparency, and conflict of interest management. The centrality of MCIs in the crypto-asset ecosystem and their concentration and market power pose additional risks. These vulnerabilities could spill over into the traditional financial system through various channels​​​​.

The FSB’s assessment indicates that the threat to financial stability from an MCI’s failure is limited at present, but significant information gaps make this a qualitative assessment. The financial stability implications of MCIs depend on the development of the crypto-asset sector, the evolution of MCIs’ roles, and the implementation and enforcement of comprehensive, consistent global regulations. The global reach of MCIs complicates regulation due to their complex organizational structures, incorporation in crypto-friendly jurisdictions, and potential for regulatory arbitrage​​​​.

The collapse of FTX and other key players in 2022 had a profound impact on the cryptocurrency market, leading to a drop in prices and prompting a regulatory crackdown. This event, along with the earlier collapse of stablecoin TerraUSD, significantly affected Bitcoin and other major tokens. Bitcoin, in particular, lost more than 65% of its value in 2022, plummeting to its lowest since 2020. The overall crypto market also took a hit, dropping from a peak value of $3 trillion in November 2021 to a low of $796 billion in 2022, following the FTX implosion. However, the market has shown resilience, with the value recovering to above $1 trillion in 2023. Venture capital investment in crypto firms also experienced a decline, dropping significantly in the third quarter of 2022 compared to earlier in the year. This decline wasn’t solely attributed to the FTX failure but was part of a broader slowdown that began with the collapse of the TerraUSD ecosystem​​.

The analysis of these developments highlights the intricate interplay between MCIs, market dynamics, regulatory landscapes, and financial stability. The evolution of the crypto market, particularly in light of these recent upheavals, will be critical in shaping future regulatory approaches and market resilience.

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K-Pop & NFTs: A New Binance Deal Shakes Up Audio On The Blockchain

A new partnership has emerged in the NFT world between global crypto exchange Binance and South Korean entertainment company YG.

Let’s dive into both properties, and how they are striving for a more eco-friendly and sustainable framework for the future non-fungible token (NFT) collaborations.

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A Look At The Binance & YG K-pop Partnership

In this new partnership, Binance will provide the executional assets around the NFT platform and surrounding technological infrastructure, while YG will supply NFT content and gaming assets. The two companies said that creating eco-friendly NFTs will be one of the primary focal points for future collaborations, with a goal of bringing K-pop stars to the metaverse.

This week’s announcement states that the memorandum of understanding (MoU) will reportedly give Binance access to develop digital assets based on the intellectual property associated with these artists.

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In a statement to the press, global head of Binance NFT Helen Hai said that the platform will be working “closely with YG to create an eco-friendly ecosystem for NFTs.” She added that the company believes “that it is important to promote the use of sustainable blockchain platforms.”

YG CEO Bo Kyung Hwang shared Hai’s sentiment, adding that the companies hope to “steadily build an innovative and eco-friendly NFT ecosystem.”

K-pop Meets NFT: Round 2

K-pop, short for Korean pop music, represents a large chunk of money in the Korean entertainment industry; roughly $4B is generated from this genre alone each year, making it one of the biggest in the world. YG manages a number of notable K-pop stars, including Blackpink, Big Bang and Winner.

This isn’t the first time k-pop and NFT’s have met up; back in November of last year, Hybe, a Korea-based entertainment label, partnered with the largest cryptocurrency operator in South Korea, K, which hosts the popular cryptocurrency exchange Upbit. The two properties launched a joint venture that focused on creating and marketing NFTs, tied to Hybe’s roster of artists. Animoca Brands, a growing player in the NFT and play-to-earn space, also announced it would partner with Korean record label Cube Entertainment to build a “k-pop metaverse.”

YG has its hands full with some of k-pop’s biggest stars, so this won’t be hard for the fans to find nor follow, as k-pop has some of the most die hard fans. It’s only a matter of time before both worlds collide, and the k-pop industry taps into the new NFT gold rush.

While some k-pop integrations have had luke-warm reception, it’s hardcore and loyal audience seems ripe for NFT adoption if audio-based NFTs and music-first metaverse plays are truly hear to stay. Only time will tell if this latest deal will have staying power in the market.

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Will Crypto Mining Survive Another Government Crackdown?

Crypto mining has been an environmental  issue that cant be over looked; World governments have tried to put a lid on it but still have an uphill battle as the popularity of crypto grows.

Will crypto be mining be able to last if the technology still impacts the earth on high levels ? Or will it mold with the time and adapt with the land before governments continue to attack Crypto currency.

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Crypto War With  Mining …

China has been in the for front of crypto bans and the war between the two parties only grows and gets more harsh. China slapped a ban on Bitcoin (BTC) mining, trading and crypto services,The Chinese government’s given reason for the Bitcoin crackdown is to reduce its well-documented climate impact. A-lot speculation on other to follow such as turkey and India but one thing we know is china is a huge influencer impact on the way some countries operate to have them ban this is only going to inspire more to follow.

The problem with crypto mining is the carbon footprint it leaves on this planet and how it impacting the natural resources we have left.Currently, less than one-third of global electric power is sourced from renewables. If this share went fully toward cryptocurrency mining, perhaps it could lend it a semblance of sustainability, but it would be little more than a fig leaf.

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Grabbing At The Gold…

After chinas ban it didn’t take long for the US to become one of the leaders in crypto mining with Russia and many to follow, This could stem from each countries hunger to become the world leader and first on the crypto train. The United States sprung at the opportunity created by the Chinese ban to become the world’s new mining hub. In Asia, Kazakhstan and Malaysia are ramping up mining operations, as are Germany and Ireland in Europe and Iran in the Middle East, according to recent stats.

The effort to keep crypto mining chugging along is making for some very strange geopolitical bedfellows. Bitcoin was revolutionary when it came out in 2008. It paved the way to a new digital economy. Proof-of-work was a revelation in terms of decentralization and security, but its lack of efficiency presented us with a ticking time bomb. This bomb is going off now.

Finding a way to switch out the source and technology used to mine will help it stay alive we are watching and prolonging a demise that has been heaping for a while due to how aware and bug climate change is and the popularity and growth of crypto. Yes the United States is going hard but how long and when will they stop using coins like Bitcoin and look into more energy friendly  projects; we cant assure anything but only look at what’s happening around us as crypto gets big so will the demand and need that will keep mining going but also at war until a new solution is brought up.

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Mastercard Onboards Ava Labs as Part of Start Path Crypto Program

American payment services firm Mastercard has onboarded Avalanche blockchain creator Ava Labs as part of its Start Path Crypto Program, designed to explore and solve how blockchain technology can democratize use cases for people and businesses worldwide.

As announced by Ava Labs, the blockchain startup will join a host of other crypto innovators to redesign the value-added services and use cases that blockchain technology can be integrated for use in solving real-world problems. Mastercard will back innovations that will make Distributed Ledger Technologies safer and easier for people, businesses, and developers to innovate.

“The past year has seen incredible momentum in the world of crypto assets, from the explosion of NFTs (non-fungible tokens) to the piloting of central bank digital currencies in countries across the world. As we look to what’s next, it’s all about finding new use cases and problems blockchain technology can solve for now and in the future,” said Jess Turner, executive vice president of New Digital Infrastructure & Fintech at Mastercard, “Whether it’s enhancing financial freedom or a new value-added service using stablecoins, we believe our new cohorts of Start Path crypto and digital assets companies combined with Mastercard’s expertise in the space will accelerate access to new ways to pay and prioritize choice for consumers and businesses.”

Rather than compete against blockchain technology, many startups feel threatened by the growing technology. Ava Labs’s President, John Wu, said his team is enthusiastic about working with developers within the Start Path Crypto Program. 

“Mastercard is setting an example for leaders across all industries on how to embrace, rather than combat innovation,” says John Wu, President of Ava Labs. “We look forward to working with projects and partners in the Start Path program to accelerate the positive impacts blockchain technology will have for individuals and institutions across the world.” 

The underlying focus of the partnership is centred on scaling blockchain technology for global enterprise adoption, and Ava Labs with its unique design of the Avalanche Blockchain, is a great addition to this cause.

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📈📰 Social volume across crytpo has been down as we close in on our final days of 2020. But assets like $XRP (delisting news from @Coinbase) and $DOT (ATH $7.59 just reached) are still dominating discussion rates for vastly different reasons.

📈📰 Social volume across #crytpo has been down as we close in on our final days of 2020. But assets like $XRP (delisting news from @Coinbase) and $DOT (#ATH $7.59 just reached) are still dominating discussion rates for vastly different reasons.


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