FTX

Non-fungible tokens (NFTs) are in dire straits. With the market in a severe downturn, it’s safe to assume the NFT bubble has well and truly burst. It was never clear why these digital collectables traded for such large amounts of money. Now they mostly do not. What’s behind their turn of fate? And is there any hope for their future?

What are NFTs?

• “Non-fungible” means unique, as opposed to a “fungible” item such as a five-dollar bill, which is the same as every other five-dollar bill.
• Digital assets are easily copied, so an NFT is essentially a receipt showing you have paid for something that other people can get for free.
• Both sets consist of 10,000 similar-looking but unique figures, distinguished by differing hairstyles, hats, skin colours and so forth.

Why did people buy NFTs?

• Even the venerable auction house Sotheby’s, founded in 1744, jumped on the NFT bandwagon.
• Sotheby’s sold 101 Bored Ape NFTs for more than US$20 million in September 2021.
• As with Bitcoin and similar speculative tokens, the primary driver for buying NFTs was greed.
• Then came the Beanie Baby and dotcom booms of the late 1990s – and more recently, meme stocks and Terra-Luna cryptocurrency.

The NFT crash

• Prices in the NFT market have also seen huge falls.
• One high-profile example is an NFT of the first tweet by then-Twitter CEO Jack Dorsey.
• Crypto entrepreneur Sina Estavi bought this NFT for US$2.9 million in March 2021.
• What drove the NFT collapse?
• Last year, British Prime Minister Rishi Sunak announced, when he was chancellor of the exchequer (their equivalent of treasurer), the Royal Mint would produce an NFT.

Gone for good?

• Some subjects of past bubbles are still around.
• Poseidon shares, which ran up from 80 cents in September 1969 to $280 in February 1970, are still listed (and currently trading for 2 cents).
• They will probably join the Dutch tulips and dotcoms in the history of speculative follies.

• In 2022, CoinsPaid grew in total revenue by 67% compared to 2021.
• 2022 was a year rife with adverse events for the crypto industry, the declines of the Terra network and FTX exchange being primary examples.
• Compared to the results of 2021, the company recorded a 67% growth in revenue, as well as a 32% increase in net profitability.
• Also, CoinsPaid's 2022 profitability in relation to its total assets (ROA) increased by 5.84% compared to the previous year.

• The lies from FTX founder Sam Bankman-Fried date back to the company’s very beginning, prosecutors say.
• In it, my colleagues and I found that even professional financial analysts fall for CEO lies – and that the best-respected analysts might be the most gullible.
• They predict how much a company will earn and suggest whether to buy or sell its stock.
• We also found that highly esteemed analysts fell for CEO lies more often than their lesser-known counterparts did.

Biased toward believing

• First, “all-star” analysts often gain a sense of overconfidence and entitlement as they rise in prestige.
• Second, these analysts tend to have closer relationships with CEOs, which studies show can increase the truth bias.
• Our research also underscores the importance of accountability in governance and the need for strong institutional systems to counter individual biases.

An AI ‘lie detector’?

• We validated the algorithm using fraudulent transcripts, retracted articles in medical journals and deceptive YouTube videos.
• It’s important to note that the tool doesn’t directly measure deception; it identifies language patterns associated with lying.
• But that future is closer than many might realize: Companies in fields such as investing, security and insurance are already starting to use it.

Big questions remain

• But while the technology offers undeniable advantages, such as early detection of threats or fraud, it could also usher in a perilous transparency culture.
• In such a world, thoughts and emotions could become subject to measurement and judgment, eroding the sanctuary of mental privacy.
• This study also raises ethical questions about using AI to measure psychological characteristics, particularly where privacy and consent are concerned.
• The decisions we make today – about ethics, oversight and responsible use – will set the course for years to come.

• Nearly a year under the new ownership, HTX has successfully integrated 'X' into its revamped brand strategy, signaling the start of a new global chapter.
• Being a well-known exchange in the industry, HTX is undoubtedly a valuable asset that has withstood the test of time.
• Over a decade, HTX experienced significant transformations, from dominating the global Bitcoin trading market share to setting up offshore companies.
• With this rebranding, HTX is once again embarking on a journey of globalization, with HTX as its global brand.