Where Next for Blockchain Technology After FTX Collapse?
The bankruptcy filing by crypto giant FTX, along with the dramatic drop in the value of most cryptocurrencies in 2022, has raised new questions regarding the future of blockchain technology.
Financial markets were buzzing with stories surrounding the collapse of crypto giant FTX this past week. Here is some of the top media coverage:
CNN — Crypto giant files for bankruptcy as CEO resigns in a stunning downfall: “FTX Group said Friday it has filed for bankruptcy in the United States and that its CEO has resigned, marking a stunning downfall for one of the biggest and most powerful players in the crypto industry.
CNBC.com — Sam Bankman-Fried steps down as FTX CEO as his crypto exchange files for bankruptcy: “In the 23-page bankruptcy filing obtained by CNBC, FTX indicates it has more than 100,000 creditors, assets in the range of $10 billion to $50 billion, as well as liabilities in the range of $10 billion to $50 billion. Bankman-Fried also indicated he wishes to appoint Stephen Neal as the firm’s new chairman of the board.”
BBC.com — FTX – Cryptocurrency market rocked by near-collapse of exchange: “The cryptocurrency world is full of big personalities and Sam Bankman-Fried is one of the biggest.
Fortune.com — With FTX on the verge of collapse, customers are wondering what happens to their crypto. Here’s what to do if you have an account there: “Cryptocurrency and the related business entities aren’t regulated in the U.S. the way other financial institutions like banks or credit unions are. Checking and savings accounts held by many consumers are backed by the Federal Deposit Insurance Corporation (FDIC), which promises to step in and reimburse customers whole if a bank fails.
BEYOND CRYPTOCURRENCIES, BLOCKCHAIN COMPANIES IMPACTED
Entrepreneur.com —Will Blockchain Technology Make Logistics the Best Ever?: “Startups in certain Asian countries such as South Korea are also experimenting with blockchain technology to make the last-mile delivery process seamless and foolproof. They have created centralized delivery platforms and matching messengers for order delivery using AI and smart contract-based applications. A number of multinational shippers are also testing the applicability of blockchain to maintain paperless transaction records in a distributed ledger, thereby lowering the chances of trade counterfeits and payment disputes.”
CFO.com — 5 Ways CFOs Can Maximize Blockchain Technology: “As the next generation of the world wide web comes to fruition, new economic and technological infrastructures are on the horizon. With this new generation, known as Web3, concepts including decentralization, digital currencies, token-based economics, and non-fungible tokens (NFTs) are making their way into the mainstream economy. As the new technology brings terms and tools foreign to even the highest academically credentialed individuals, this new arena of commerce has created an even playing field for companies of all sizes to leverage.”
Forbes — 4 Ways Blockchain Technology Will Change Leadership: “Blockchain technology provides a decentralized, secure way to store and manage data, enabling new levels of transparency and collaboration that transform strategies and operations. With blockchain technology, organizations can create a shared, tamper-proof database to track transactions, assets and interactions among parties. This provides a single source of truth that everyone can trust, eliminating the need for costly intermediaries and manual reconciliation. But leaders must take a strategic approach to ensure that their organizations can reap the full benefits of this transformational technology.”
CNBC — Singapore wants to be a hub for blockchain in finance, just not speculative crypto trading, MAS says: “Singapore has ambitions to become a global crypto hub, but has been cracking down on the industry after many retail investors lost their life savings to crypto trading. The city-state has repeatedly warned that cryptocurrency trading is “highly risky and not suitable for the general public” due to its volatile and speculative nature. It even banned crypto advertising in public areas and on social media in January 2021 and proposed new measures to protect retail investors recently following the $60 billion collapse of Terra’s Luna.
FINAL THOUGHTS
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*** This is a Security Bloggers Network syndicated blog from Lohrmann on Cybersecurity authored by Lohrmann on Cybersecurity. Read the original post at: https://www.govtech.com/blogs/lohrmann-on-cybersecurity/where-next-for-blockchain-technology-after-ftx-collapse