FTX’s guilty verdict – What does it mean for blockchain technology?

Between FTX’s fallout and YouTube’s ad blocker crackdown, it's been a busy month in tech. Let’s slice through the noise!

In today’s newsletter:

• FTX's crypto chaos
• Staff augmentation and market research decoded
• Hot topics: YouTube’s war against ad blockers, Apple's innovation spree, AI news
• Spotlight: Our CEO at Meridian 2023

FTX's claims soar amid ex-CEO's conviction

Thanks to successful early forays into AI, FTX's claim pricing hit a remarkable 57%, giving hope to creditors eager to recoup losses after the crypto firm’s bankruptcy.

This 57% is the proportion of claims to be repaid based on FTX’s remaining assets and total claims filed. It’s notably higher compared to other insolvent crypto companies like Celsius (40%) and Alameda (10%).

Interestingly, the surge coincided with ex-CEO Sam Bankman-Fried’s fraud conviction, suggesting a positive market response to the closure of FTX’s biggest legal issues.

But the story is far from over. Bankman-Fried’s sentencing and second criminal trial — both scheduled for March 2024 — will likely add new twists to this saga. It’s still uncertain how much time the FTX founder will actually serve, but one thing is clear: He has to face a new set of charges, this time for paying bribes to Chinese officials and making over 300 illegal political donations in the US.

Ripple effects in the blockchain industry

Specializing in derivatives and leveraged tokens, FTX was once the third-largest centralized crypto exchange in the world. Its downfall unfolded swiftly over just 10 days, starting November 2, 2022. The trigger? An award-winning CoinDesk report revealed that Alameda Research — also managed by Bankman-Fried — invested $5 billion in FTT (FTX’s proprietary token). Alameda's reliance on FTT (rather than on stable fiat or diversified cryptocurrencies) sparked concerns about FTX’s hidden financial risks. It prompted a wave of customer withdrawals that quickly spiraled into a liquidity crisis.

After a failed attempt to secure a bailout, FTX filed for bankruptcy on November 11, 2022. The collapse set off a contagion that affected many other crypto firms and caused massive market turmoil. It also forced major players in the industry — including Coinbase and Binance — to reevaluate their strategies.

There’s no doubt that the FTX case exposed gaps in blockchain regulations, sparking calls for tighter regulation and improved investor safeguards. It also raised questions about crypto’s future. Could this cause the public to completely lose trust in the cryptocurrency sector — and in blockchain in general?

But it’s not all bleak... ??

Many industry leaders expect the guilty verdict to restore blockchain’s credibility and bring focus to its untapped potential. We’re strong believers in the potential blockchain technology can offer, so it’s our job now to showcase what it can do and how it can help people. After all, beyond just cryptocurrency, blockchain can deliver real-world solutions — from secure medical records to transparent voting systems. There's more to blockchain than meets the eye, so exploring and promoting its broader benefits is crucial.?

What's new in the Cheesecake Labs Blog

Staff augmentation 101

Written by jeremy "falcon" stephan - Head of Client Engagement at Cheesecake Labs

Need to add an extra hand to your tech team quickly? Staff augmentation could be the answer. This approach lets you hire skilled professionals quickly and flexibly. But what exactly is it? How does it differ from traditional outsourcing or managed services? How do you manage the process and choose the right staff augmentation partner? Our latest post explores this recruitment strategy and peeks into Cheesecake Labs' unique approach.

Your market research blueprint

Written by Silvanete Ribeiro Iagobucci - Product Manager at Cheesecake Labs

Building great digital products requires more than just a good idea. You also need a strategic combination of market research and smart product development. Let’s look at how these elements work together to make your app irresistible.

Exploring the Hottest Topics Online ??

• ?? YouTube’s battle with ad blockers heats up - Mirroring Facebook's 2016 strategy, YouTube now forces users to disable ad blockers or lose access to content — a move that sparked record uninstalls and sent ad-block developers scrambling to build alternatives. The video-sharing platform maintains that ad filtering violates its terms, promoting YouTube Premium as an ad-free alternative
• ?? Apple pits M3 chip and AI investments against declining sales - Apple's recently announced M3 chips live up to the hype. Their efficiency cores are 30% faster than the M2 and 50% faster than the M1 series. Despite their silicon innovations, Mac sales are down by 35%, and sales overall are declining for the fourth straight quarter. But that hasn’t stopped Apple from betting big on AI. CEO Tim Cook clarified that key iOS 17 features rely on machine learning and confirmed that Apple is investing around $1 billion annually to develop its AI capabilities.
• ?? Privacy alert: Chat apps may leak your IP - A cautionary note for Signal, WhatsApp, Telegram, and FaceTime users: these platforms could inadvertently reveal your IP address during calls, owing to their reliance on peer-to-peer connections.
• ?? Stock market celebrates its best week in 2023 - The US economy added 150,000 jobs last month — slightly below forecasts, but enough to push unemployment rates down to 3.9%. This trend is fueling optimism in investors who also expect the Federal Reserve to pause rate hikes soon. A nice positive trend for the end of the year!
• ?? LATAM venture funding favors more mature companies - Venture funding in Latin America showed contrasting trends in Q3. Later-stage investments grew by an astounding 677%, but seed and early-stage deals fell by 50%.
• ?? AI revives The Beatles' last single – Thanks to machine learning technology, the world can finally hear Now and Then, which Paul McCartney calls The Beatles’ “last great song.” The production crew used AI software to sort through complex soundscapes and separate John Lennon's voice from a demo cassette tape. Check out how they did it.
• ?? Stablecoin market grows amid varied supply trends - The stablecoin sector grew by $600 million despite fluctuating supply dynamics among leading currencies. Tether (USDT) saw its supply increase by 1.9%, reaching an $84.98 billion valuation.

Watch our CEO's Meridian session

We were in Madrid for Stellar Development Foundation 's Meridian 2023 conference, together with developers, founders, entrepreneurs, policymakers, and finance leaders from around the world who were keen on exploring blockchain’s potential.

In a Barrio Blockchain session, Cheesecake Labs CEO Marcelo Gracietti revealed the upgraded Stellar Asset Sandbox, which now supports issuing, minting, burning, and asset management on the Stellar network. We’re so proud to be part of a project that empowers more companies — including startups — to build world-class digital products!

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