FinTech Weekly Issue #391 - Messy Times in Wall Street

Business Cryptocurrency

FTX, the crypto exchange that is making headlines, chose Bahamas as the country for its headquarters over one ago. The country wants to attract crypto companies from around the world, but what are its plans? And will they change after the collapse of FTX?

Business Cryptocurrency

FTX collapse seems to affect other crypto companies like Coinbase. The shares of the popular centralized crypto exchange tumble – despite its CEO, Brian Armstrong, assessing that Coinbase has no exposure to FTX.

Business Cryptocurrency Investments

But the most affected by the collapse of FTX are, of course, its customers. The bankruptcy of the exchange is one of the largest ever seen in the crypto space. Court filings are assessing the causes of the collapse, and the customers of the exchange are increasingly losing hope they’ll recover their money.

Business Cryptocurrency

What about companies that actually had exposure to FTX? BlockFi is one of them, and the popular crypto company is preparing for bankruptcy. Genesis is pausing redemptions and loan originations, as well as Gemini delays withdrawals.

Cryptocurrency Regulation

Hong Kong has often populated our newsletters for its ambition to become a crypto hub in Asia. But the recent events that involved FTX and other crypto companies could modify the intention of Hong Kong to create a more ‘relaxed’ regulatory framework for cryptocurrencies.

Banking Business

Despite these messy times for the global economy, crypto investors and fintechs, there are some cases more successful than others – despite what the price of shares says. One of these cases is Dave, the mobile banking application, which saw a 97% decline in its share, but the CEO of the fintech firm, Jason Wilk, said that the company has $225 million worth liquidity to face costs until they generate profits.

Business Investments

In the meantime, the Hong Kong based fintech firm Quantifeed, backed by HSBC, has acquired Alpima, the UK based SaaS company, to offer new services and expand across new markets.

Business Opinions

Patrick Jenkins asks an interesting question, we’re paraphrasing: why top players in the payments industry are still not facing their Kodak moment? Kodak was killed by the introduction of digital cameras, but Visa and Marstercard thrive despite the constant launch of new payment-related fintechs. Maybe most fintechs are not so innovative?

Business Opinions Regulation

Alloy and Gartner Peer Insights released a report that is the result of a survey of 100 fintech personalities. The report shows that the main concerns of fintech leaders shifted from fundraising, hiring and costs to concerns like regulatory frameworks and solutions against frauds.