TGIF! It’s Dan DeFrancescoChecking in from NYC This week has been very long so please enjoy your weekend. You deserve it.
Today, we have stories to share Why you should be optimistic about a possible recession, Cryptocurrency has more bad newsAnd A useful guide to streaming..
First, where is Wall Street going from here?
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Ludovic Marin/AFP via Getty Images; BlackRock; Alyssa Powell/Insider
1. Is institutional money still coming?
Since the beginning of time, any conversation about crypto with anyone would end in some form of this phrase.
“Just wait for the institutional money to come in.”
It seemed for a time that crypto enthusiasts were more interested in talking about their eye-popping returns than how much bigger they would be when traditional finance finally got on board and entered the market.
The concept of crypto was actually a misnomer, particularly on the trading side. The crypto market was first opened up by traditional market players long before the cryptocurrency market became popular. They have performed extremely well.
However, big money managers were resistant. However, this all began to change in 2022. BlackRock is the most prominent.The world’s largest asset manager was where real progress was being made.
Sam Bankman Fried then ruined the fun.
Right now You are well aware about the FTX debacle. There have been many comparisons made to financial collapses such as Bernie Madoff, Lehman Brothers and Long-Term Capital Management. This is not the type of company that big-time money managers would like to keep.
Where do we go from there? Did FTX and SBF represent an anomaly? It is not possible to use this type of event to portray an entire industry in negative light. Is it a canary in a coal mine? Wall Street should be alert and get out immediately before it gets too deep.
Insider’s Rebecca Ungarino, and Danielle Walker looked at what the Wall Street’s crypto plans will be affected by the knock-on effects from FTX’s collapse.
In the short term, the so-called “contagion” — every finance journalist’s new favorite word — is fairly limited. The real risk, however, is reputational damage, as the story demonstrates.
The key to Wall Street’s adoption and use of crypto was the work of intermediaries that bridged the gap between these two worlds. FTX’s blowup could make those type of tieups — which seemed to be on the rise — that much harder to develop, Rebecca told me.
She said that while it won’t happen immediately, it is clear that the seed of doubt was planted in many companies’ heads. Simply put, it is possible for anyone to experience what SBF experienced.
Personally, I can see this as a point for divergence, or to use crypto-vociage, a fork in the industry.
One thing that has always been obvious to me is the fact that many of the core ideas of crypto are being resisted by Wall Street.
Maybe this is an opportunity for each side to choose their own path?
Financial firms can create some bastardization of digital currencies that they deem safe enough to use — something we’ve already seen to a degree — while crypto purist can continue on without concerns over having to acquiesce to the desires of a group they don’t see eye to eye with.
Learn more about how FTX’s collapse might affect Wall Street’s long-term crypto plans.
Other news:
Macall B. Polay/ HBO
2. Things will get worse, but not! That bad. There are many warning signs that there is a recession coming, but it may be less severe than most of us thought.). Here are the reasons some people are optimistic following the most recent economic data.
3. One family that was the inspiration for “Succession,” might be more dramatic than the show. Paddy Manning, who wrote a biography about Lachlan Murdoch just a few days ago, shared some palace intrigue that was taking place at the family behind Fox News Corp. If it is to be said, so it be — so it is.
4. Twitter isn’t optimistic. Although they may have been able to keep their jobs, Elon Musk stated in an email late at night that the road ahead was difficult. You can read the entire memo that was sent out to staff..
5. Everyone thinks about Sequoia Capital losing $213 Million it invested in FTX. Wednesday was a big day for VC. The company announced that it would increase its stake in the crypto exchange, which is currently in crisis, to $0. Here’s what the internet said.
6. Funding of $33 million was just awarded to a startup that helps companies provide personalized financial products for their employees. Brightside’s Series A round also included participation by Andreessen Horowitz (famous investor). Here’s what fintech is planning to do with the cash.
7. Here’s a glimpse at the key players who coach the next generation of great startups. We profiled the 19 visiting and group partners of Y Combinator in the Winter ’23 class. Here are their top tips to help you become a successful YC founder.
8. Crypto can’t catch an iceberg. Coinbase has announced its second round in layoffs for this year. The Information reports.
9. Keep up-to-date with the latest information about which states have legalized marijuana. You may do so for financial reasons or any other reason..
10. The ultimate solution to the question, “What should you watch tonight?” Here is a list with the highest rated American movies on Netflix for this year. See all 58.
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Edited by Jeffrey Cane. @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.
