Just a few months ago, the major cryptocurrency exchange FTX filed for bankruptcy, sending shockwaves through the digital economy, particularly in India. Alberta was seen as a potential leader in this space.
One of the most affected companies was Calgary-based Bitvo Inc., which FTX had announced it was going to buy in June. The deal was terminated last month and the company stated that it was not subject to any bankruptcy proceedings.
“There is no impact on Bitvo’s operations or the security of our clients’ funds as a result of the FTX failure,” said Pamela Draper, Bitvo’s President and CEO.
The ripple effect of the FTX crash, once worth $32 billion, has left industry players anxious for the upcoming year. It has also prompted questions about the future of the burgeoning cryptospace. Alberta has positioned itself as a potential leader in this domain.
It was these moves that Alberta made that attracted FTX in the first place, according to Sam Bankman-Fried, founder of Bahamas-based exchange.
“We have had some great conversations with the Government of Alberta, who have been really constructive and are trying to take the lead in Canada and around the world for crypto policies and frameworks,” Bankman-Fried said in an interview with The Globe And Mail in June.
Bankman-Fried was arrested earlier this month for eight criminal offenses, with a potential sentence of decades in prison.
Proponents of the tech, including those with Alberta-based businesses, say that this market has experienced cycles like these before, and the FTX debacle presents an opportunity to turn the page and keep developing the underlying blockchain technology.
Conversely, detractors claim that the implosion is additional evidence of blockchain technology’s failure in a major way, and that more major challenges lie ahead.
Where You can find it here
Hut 8. Based in Medicine Hat, Alta. bills itself as one of Canada’s oldest and largest miners, and doesn’t seem too concerned about the current downturn in the space.
“This is not our first bear market,” said Sue Ennis, Hut 8’s Head of Investor Relations. Any type of storm.
According to the company, it will keep its 8,925 Bitcoins as it believes in the asset’s potential and ability to build businesses around it.
Koleya Karringten is the executive director of The Canadian Blockchain Consortium, a national industry group with a base in Calgary that advocates regulation of cryptocurrencies.
