Crypto Hype Was Going to Bring in Regulators "No Matter What"
The cryptocurrency world brought the Securities and Exchange Commission’s investigation onto itself, said Paul Vigna, reporter at the Wall Street Journal and author of “The Truth Machine.”
The scale and speed at which the entire market has grown, with billions of dollars flooding into the space for “sketchy” products created a situation that “was going to bring in regulators, no matter what,” he explained.
“I don’t think they’re being particularly draconian. I think they’re being honest in that they’re trying to figure out what is happening in this market, what it is, and how to draw the lines around it.”
Last month, Vigna reported that the SEC had sent out dozens of subpoenas and information requests for companies involved in Initial Coin Offerings, or ICOs.
In December, the commission also issued a statement urging caution and skepticism among investors, saying there is “substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.”
The SEC’s caution comes against a backdrop of an increasing number of social media networks, from Facebook and Google to Reddit and Twitter, cracking down on cryptocurrency ads.
In recent months, the amount raised in ICOs has lessened, but Vigna says that’s not the metric to watch.
“The real trend to look for is to see where the money is going rather than the totals. Is the money going to more high-quality projects...that seem to have some chance of building something?
“Last year, was just a lot of indiscriminate spending,” he explained. “I think you’re going to see a lot more thoughtful invest[ing] this year.”
For the full interview, [click here](https://cheddar.com/videos/why-the-ico-market-is-cooling).
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
