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Crypto hotspots continue to thrive despite the collapse of FTX

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The sudden failure of FTX has many people wondering what effect this will have on the cryptocurrency ecosystem. For example, it is still doubtful whether or not Crypto hotspots will continue to thrive Or if there is a decline in innovation.

While it may be too early to fully understand the impact of the FTX collapse, industry leaders in crypto-friendly geographies believe that the failure of FTX will not hinder innovation.

For example, Dubai – which has been called one of the most popular cities Innovative areas for cryptocurrency and blockchain development – Still see ecosystem activity. Most recently, it was the Algorand Foundation, which is the organization driving growth Alogrand blockchainhosted its second year FCC conference in Dubai. The event took place from November 29-30, just weeks after former FTX CEO Sam Bankman-Fried stepped down from his position and declared bankruptcy.

While a number of discussions circulated around the FTX crash, Decipher still attracted over 1,500 participants from all over the world. Staci Warden, CEO of the Algorand Foundation, told Cointelegraph that the UAE remains a thriving blockchain capital. “This is supported by a strong talent base in the region, a deep culture of innovation, and a diverse and engaged community,” she said.

The main stage at Decipher in Dubai. Source: Algorand

Even with Decipher’s impressive turnout, it was noted that the Crown Prince of Dubai was plans To invest $4 billion to help grow the cryptocurrency ecosystem in the region. This is expected to add 40,000 job opportunities for the UAE economy over the next five years, which is pretty impressive considering the country is already home to over 1,000 companies operating in the metaverse and blockchain sectors.

Nilesh Khaitan, founder of AcmeDAO — a Dubai-based platform that helps decentralized applications transact on-chain — further told Cointelegraph that rumors that the FTX crash is affecting crypto hotspots globally may not necessarily apply to Dubai. He said:

“It is possible that the crypto community in Dubai in particular has not been affected, or even seen growth, due to the increase in regulatory uncertainty in other regions. Dubai may continue to see growth in its crypto community going forward, particularly if the city offers an environment More attractive regulatory compared to other regions.

While Khaitan remains optimistic about Dubai’s potential, he noted that the region still needs to focus on regulatory clarity between the UAE’s central bank and free zones in the UAE that issue licences specifically for cryptocurrencies.

This includes creating a regulatory protection environment for crypto startups and entrepreneurs from the Virtual Asset Regulatory Authority (VARA). He said these challenges can be overcome through the government’s combined strategic efforts to promote Dubai as a conducive destination for cryptocurrency and innovation businesses.

Other cryptocurrency hotspots in the Middle East have reported positive sentiments recently. For example, Tel Aviv, a well-known startup hub, continues to focus heavily on developing the blockchain ecosystem as a whole.

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Or Dadush, co-founder and CEO at Ironblocks — a Web3 threat detection and prevention platform — told Cointelegraph that in Israel, there is more interest in blockchain technology itself and building products on top of these networks.

“The community here is not driven by cryptocurrency trading and speculation about the performance of tokens when it comes to Web3 and blockchain,” he said.

This appears to be the case, as a number of cybersecurity firms were present at the Israel Cryptography Conference (ICC), which took place in Tel Aviv on December 7th. Not as big as last year, it still attracts hundreds of attendees.

“While events like the FTX collapse have a temporary impact on crypto prices and the ability of projects to raise funds, they do not erase optimism within the industry about blockchain as a technology. Crypto people understand that this technology will be transformative. They understand that the bear market is temporary.

Attendees at the Israel Cryptocurrency Conference 2022. Source: Israel Cryptocurrency Conference

In light of this, Elon Aviv, the principle at Collider Ventures — a Tel Aviv-based venture capital firm focused on Web3 companies — told Cointelegraph that he believes the crypto community in Tel Aviv will indeed see an acceleration of growth. “There is no such thing as bad publicity” may be true, as the founders are now specifically targeting the problems that have arisen from the FTX fallout.

In addition to Dubai and Tel Aviv, cryptocurrency hotspots within the United States appear to be moving forward. For example, Austin, Texas, continues to attract a number of bitcoins (BTC) mining companies. This was evident during the second annual Texas Blockchain Summit that took place in Austin on November 17-18.

Main stage at Texas Blockchain Summit 2022. Source: Texas Blockchain Summit

While attending the Texas Blockchain Summit It wasn’t as great as last yearThe optimism for the future of the cryptocurrency industry was evident. This may have been fueled by US Senator Ted Cruz’s friendly stance towards bitcoin. Over the top, Cruz He declared that he loves Bitcoin “Because the government can’t control it,” he also shared that he buys bitcoin weekly.

Lee Bratcher, president of the Texas Blockchain Council and organizer of the summit, told Cointelegraph that Austin is home to many companies promoting self-custody for their clients. As such, Bratcher believes that the proportion of cryptocurrency holders with their assets in a hardware wallet or hot wallet is likely to be higher in Austin.

“The number of people building large bitcoin and digital asset companies in Austin insulates it a bit from the chaos in the centralized exchange system,” he noted.

Miami – one of The fastest growing crypto hubs in the world He takes strides too. Specifically, Miami remains the main attraction for NFT artists around the world. For example, the Art Basel fair was recently held in Miami, Display a number of NFT artworks.

Although Miami’s spending behavior is notable, it appears to be affected by the FTX crash. Jumana Al-Darwish, serial entrepreneur and Web3 investor, tells Cointelegraph that while Art Basel Miami this year was a mix of high-profile artists and emerging talent, galleries have been playing it safe with the pieces they’re showcasing. She said:

“With the post-pandemic economic recovery and cryptocurrency winter in full swing coupled with the latest FTX scandal, one can sense that visitors have been more conservative versus the impulse buying behavior that has occurred in previous years.”

However, this should come as no surprise, as a recent report from the Financial Times also pointed out. Miami nightclubs have taken financial losses After FTX fails.

It is also interesting to mention that popular crypto cities like San Francisco are gaining momentum. Tejan Klein, co-founder and chief business officer of Edge and Node — a Web3 software development company — told Cointelegraph that Edge and Node recently opened their Web3 home in San Francisco to provide a co-working space for startups and entrepreneurs:

Some hubs in the US like Austin and Miami have robbed San Francisco, but the startup spirit in San Francisco will never die. It’s one of the few places in the world where you can talk about your crazy startup idea over dinner and they don’t kick you out, they just offer to help – either It was by funding or talent hunting, etc.”

In addition, regions such as Singapore are recording growth in the Web3 sector. Oliver Shih, founder and CEO of decentralized insurance platform InsurAce, told Cointelegraph that although the Singapore-based cryptocurrency ecosystem was affected by the FTX crashThere is now a stronger focus on Web3.

“Within the government, there are signs of a pivot away from crypto, the Deputy Prime Minister said at a recent parliamentary hearing also that Singapore will no longer seek to become a global hub for cryptocurrency trading, but will instead focus on real innovation using new Web3 technologies,” He said.

Cryptographic hotspots face constant challenges

While it is noticeable that crypto-friendly cities continue to thrive despite recent events, there are still a number of challenges that could lead to slow growth. For example, organizational clarity It is still very much needed for the advancement of these ecosystems.

Yoav Zucker, chief marketing officer at Collider Ventures, told Cointelegraph that regulation continues to be a pain point for the Israeli ecosystem. despite Israel’s chief economist recently put together a list of recommendations In terms of how policymakers should handle the laws of digital assets, Zucker still believes that regulation is lacking.

“I think this is the main barrier for Israeli founders in the Web3 ecosystem.”

Even in regions like Dubai – which has established laws on regulating virtual assets and established authorities such as Virtual Asset Regulatory Authority (VARA).) – Regulatory clarity still needs progress. Dubai-based founder and CEO of the Web3 platform Linda Adami told Cointelegraph that while companies like Binance and Kraken have licenses in Dubai, more local companies need to be developed from the ground up.

“Similar to the way Emirates established Dubai as a hub for tourism and services, what are the success stories of Web3 emerging in Dubai in the future,” she said.

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While coding regulations It remains a hot topic of debate within the United StatesBratcher said that emerging crypto cities like Austin still lack the capital influx seen in cities like New York and San Francisco:

“Austin needs a continued influx of venture capital and capital from Silicon Valley in order to establish itself as the epicenter of the Web3 digital asset ecosystem.”

Although that may be the case, Klein noted that the growing amount of crime and homelessness in San Francisco may be driving talent elsewhere. However, she believes that Edge and Node’s Web3 house may be a solution to this problem, saying, “We have many events and initiatives happening at the Edge and Node House of Web3 in terms of how we can use Web3 tools to work toward solutions to help heal San Francisco” .