Investing in Web 3.0 Companies and Blockchain: BlockFi Emerges from Bankruptcy, Worldcoin Halts USDC Payments and More.
Crypto Biz: BlockFi emerges from bankruptcy, Worldcoin halts USDC payments and more

This week’s Crypto Biz looks at the emergence of BlockFi from insolvency, BlackRock’s progress on a Bitcoin exchange-traded fund (ETF), and modifications to Worldcoin’s payment system. After a year of bankruptcy, creditors of some of the crypto bear market’s failed companies have finally been given a glimmer of hope.

BlockFi, one of FTX’s largest creditors, had lent the exchange more than $650 million. As such, the success of BlockFi’s customers’ repayments is intertwined with FTX’s ability to reclaim its assets — which it managed to do to the tune of $7 billion, according to FTX. The exchange’s new management is now evaluating its options, such as selling the entire exchange — which includes its nine million-strong customer base — or partnering with another entity to revive it, or even attempting an independent comeback.

In contrast, BlockFi has no choice but to close down, as per its court filings.

Is Web 3.0 Blockchain?

The concept of Web 3.0 has been gaining traction in recent years. It is a decentralized web, powered by blockchain technology, and is seen as the next step in the evolution of the internet. This has led to many people asking how to invest in Web 3.0 companies, as well as whether the Metaverse is part of Web 3.0, and how the emergence of Web 3.0 will affect businesses. There is no definitive answer to these questions yet, as Web 3.0 has not yet come into full force. However, it is clear that it will revolutionize the way we use the internet.

BlackRock’s spot Bitcoin ETF now listed on Nasdaq trade clearing firm — Bloomberg analyst

The iShares spot Bitcoin ETF proposed by investment firm BlackRock has been listed on the Depository Trust & Clearing Corporation (DTCC), which could be a sign of approval from the United States Securities and Exchange Commission. On Oct. 23, Bloomberg ETF analyst Eric Balchunas tweeted that the DTCC listing was “all part of the process” of bringing a crypto ETF to market. “This is [the] first spot ETF listed on DTCC, none of the others on there (yet),” said Balchunas. Balchunas speculated that BlackRock may have already received the green light for listing the ETF from the SEC or was “prepping everything assuming so.” According to the date of BlackRock’s application, the SEC has until Jan. 10, 2024, to make its final decision on whether to approve or deny the ETF.

The launch of a spot Bitcoin ETF could have a huge impact on the future of web 3.0 companies and the metaverse. It remains to be seen how blockchain technology and web 3.0 will impact business and what the future of web 3.0 holds. Investors interested in web 3.0 technologies may be wondering how to invest in web 3.0 companies and if there are ways to invest in web 3.0.

BlockFi exits bankruptcy and allows wallet withdrawals

Cryptocurrency lending platform BlockFi has exited bankruptcy and is now able to restore some of its creditors, as stated in a blog post on Oct. 24. Withdrawals “are currently accessible to almost all Wallet customers,” the post mentioned, with BlockFi Interest Account and Loan customers being able to take out some assets starting in early 2024. BlockFi’s exit from bankruptcy implies that it can now aim to reclaim funds from other companies which it believes owe it money. This involves bankrupt crypto platforms such as Three Arrows Capital and FTX. The total amount of distributed funds will hinge on BlockFi’s success in FTX bankruptcy litigation, among other factors.

Ledger hardware wallet rolls out cloud-based private key recovery tool

Ledger, a hardware wallet firm, is launching its cloud-based private key recovery solution, which is provided by blockchain protection platform Coincover. This subscription service allows users to back up their secret recovery phrase. The release of the product comes months after Ledger paused the recovery service in May 2023 following the criticism from the crypto community. Ledger CEO Pascal Gauthier then stated that the firm would only launch the product after its open-source code was released. The code for the Ledger Recover is now available on GitHub.

With the emergence of web 3.0, businesses are wondering how it will impact them and how to invest in web 3.0 companies. The Metaverse is part of web 3.0, and blockchain is also part of this new web. Although web 3.0 has already started, the future of this new web is yet to be seen.

Worldcoin to cease paying Orb operators in USDC as early as November

As of next month, Worldcoin will no longer be paying its Orb Operators — those rewarded for scanning people’s eyes — with USD Coin (USDC), instead opting to pay them with its native Worldcoin (WLD) token. This change will be implemented in most jurisdictions. Worldcoin said the switch to WLD was part of a “transitional phase” following the project’s official launch on July 24. According to Worldcoin’s official Dune Analytics dashboard, the supply of the WLD token has increased from around 100 million at launch to 134 million this week.

Crypto Biz is your weekly pulse on the business behind web 3.0 and blockchain, delivering insights into how to invest in web 3.0 companies, the future of web 3.0, the impact of web 3.0 on business, and whether blockchain is part of web 3.0, directly to your inbox every Thursday.

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