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The recent wave of investment booms, including NFTs and trading cards, has not only ruined many bank accounts, but the federal government is investigating its dramatic decline.
FTX, a Bahamas-based cryptocurrency exchange founded just before the pandemic paralyzed America and much of the world, went bankrupt this month, with federal officials baffled by the bankruptcy of the $32 billion company.
Some have compared the decline of cryptocurrencies to Bernie Madoff. “Just as Madoff’s Ponzi scheme collapsed in the 2008 financial crisis, the collapse of FTX comes amidst a broader setback in the tech industry,” he wrote in his newsletter for The New York Times Digital. His technical writer Ellen Griffith.
“Tech stocks have crashed. ‘, said Griffith.
In a recent CBS News interview, Treasury Secretary Janet Yellen said the collapse of the FTX would force funds to invest in “extremely risky” financial instruments traded in a sector “lacking proper oversight and regulation.” said we should warn Americans about doing I think this is an area where investors and consumers need to be very careful,” said Yellen.
“While most of our financial markets have very strong laws to protect investors and consumers, in some respects the crypto space is poorly regulated.”
Crypto and the hip-hop community
But the cryptocurrency space has attracted not only financial heavyweights, but also entertainment heavyweights such as Snoop Dogg, Jay-Z, Russell Simmons, and Ja Rule.
With friend and business partner Herb Rice, Ja Rule co-founded The Painted House and launched the NFT collection Black Is Beautiful. Earlier this year, Ja Rule told The Black Press that he wanted to create a space for people of color in the crypto world.
“It’s important. We need to be at that table,” Ja Rule said. I jumped into the NFT market because I wanted to get flowers and money for myself.
Working with NFT marketplace Tokau, Simmons’ NFTs honored individuals like DJ Hollywood, Bizzy Bee Starski, and Grandmaster Caz. Snoop Dogg has agreed to curate the NFT collection.
“It’s a multi-billion dollar industry, and a lot of the younger generation doesn’t know whose shoulders they’re standing on,” Simmons told The Black Press at his launch party. “Some of these people [founders] I don’t even have a bank account, but I have to consider, we all have to.
Simmons said Snoop Dogg said, “Okay. He wants to be on this. That’s why I love him so much. Snoop has such a big heart. He thinks about these guys. I care.”
In June, Jay-Z teamed up with Twitter founder Jack Dorsey to launch a new “Bitcoin Academy” for underserved residents, particularly those at the Mercy House in Brooklyn, New York. announced to raise
Plans included adding other locations for the program co-designed with Crypto Blockchain Plug and Black Bitcoin Billionaire. Jay-Z and Dorsey said their mission includes providing education and imparting knowledge to the community.
Participants in the program were promised a MiFi device, a limited data plan for one year, and a smartphone if needed.
What now?
Each artist has yet to talk about the current state of the crypto space. Recently, a new survey found that the District of Columbia tops the list of US states and places showing the most interest in NFTs and cryptocurrencies.
Bitcoin will sell for a record $68,000 in November 2021, while NFT sales peaked at $12.6 billion in January 2022, according to the study.
FTX’s new CEO, John Ray III, told MSN, “In my career, I’ve seen the complete failure of corporate management and complete lack of reliable financial information like what happened here. There was no,” he said. From the lack of security controls to the business funds used to buy employees’ homes and luxury goods, FTX’s operations under founder Sam Bankman Freed.
“The integrity of the system has been compromised, and control over control in the hands of a very small group of individuals who may be inexperienced, unsophisticated, and potentially at risk from failures in regulatory oversight abroad. Until the concentration, this situation is unprecedented,” said Lei.
He did some cleanup work in the aftermath of the disastrous Enron scandal. It writes that a federal investigation is required.
But the impact is already clear. “Reps want more oversight,” wrote Griffin.
“Crypto stalwarts are trying to keep their distance. Critics of this financial sector are screaming, and those who have so far managed to ignore the rise, rise, rise of cryptocurrencies as a phenomenon. For? First, good for you, and second, you might want to see this play out.”
Stacy M Brown is a senior correspondent for the NNPA Newswire.
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