Market Analysis Report (29 Mar 2023)

In Galaxy Digital’s Q4 2022 shareholder update conference call, the firm’s CEO, Mike Novogratz, expressed his disbelief at the regulatory attention given to crypto while AI remains unregulated, fearing that AI could lead to a "deep fake" identity crisis.

Polygon, a layer two scaling project for Ethereum, has recently launched a highly anticipated zero-knowledge-based rollup network known as Polygon zkEVM. Ethereum founder Vitalik Buterin performed the network’s first transaction in a YouTube broadcast.

Crypto exchange Kraken has announced a partnership with Williams Racing, becoming the team's first-ever official crypto and Web3 partner. The collaboration aims to connect racing fans worldwide with the digital asset community.

Top stories in the Crypto Roundup today:

•  The Government Should Fear AI, Not Crypto: Galaxy Digital CEO
•  Polygon Labs Launches Mainnet Beta for Ethereum-Compatible zkEVM
•  Kraken Becomes Williams Racing's First Official Crypto and Web3 Partner

The Government Should Fear AI, Not Crypto: Galaxy Digital CEO

In Galaxy Digital’s Q4 2022 shareholder update conference call, the firm’s CEO, Mike Novogratz, expressed his disbelief at the regulatory attention given to crypto while AI remains unregulated, fearing that AI could lead to a "deep fake" identity crisis.

During the call, the CEO said, “when I think about AI, it shocks me that we’re talking so much about crypto regulation and nothing about AI regulation. I mean, I think the government’s got it completely upside-down.” 

Novogratz emphasized the crucial role that crypto and blockchain technology could play in addressing these issues, stating that “In lots of ways, one of the best use cases for crypto is going to be identity around AI, because pretty soon you’re going to get a fake Mike Novogratz, hopefully with hair [...] how do you prove identity in a world like that?” he said.

The U.S. Commodity Futures Trading Commission (CFTC) engaged in talks about AI and its impacts with the Technology Advisory committee last week.

As for current state of the market, Novogratz is confident that the digital asset market will continue to grow throughout 2023, an optimism that is supported by the firm disclosing yesterday that from January 1, 2023, to March 24, 2023, a preliminary pre-tax income of $150 million was achieved; this comes after a $1 billion loss in 2022.

Polygon Labs Launches Mainnet Beta for Ethereum-Compatible zkEVM

Polygon Labs has introduced the Mainnet Beta for its Polygon zkEVM, an Ethereum scaling solution that significantly reduces transaction costs and increases throughput. The technology, used by major companies like Meta, Stripe, and Reddit, is now completely open-source under the AGPL v3 license, allowing developers to modify, utilize, and distribute the code.

The Polygon zkEVM leverages zero-knowledge (ZK) proofs to maintain Ethereum's security while boosting performance. ZK-proof technology enables the grouping of transactions and their transmission to the Ethereum network as a single, bulk transaction, reducing fees for all parties involved. The high security and censorship resistance of Polygon zkEVM makes it an attractive option for developers of payment and DeFi applications.

To address the possibility of undiscovered bugs, Polygon Labs has implemented strict security measures, including a temporary security council, and a $1,000,000 bug bounty for reporting critical vulnerabilities. 

Mihailo Bjelic, co-founder of Polygon Labs, asserts that the primary objective of Web3 infrastructure should include scalability, security, and compatibility with Ethereum. With its innovative technology, Polygon's zkEVM successfully attains these characteristics, facilitating widespread acceptance and fostering the expansion of the Web3 ecosystem.

Kraken Becomes Williams Racing's First Official Crypto and Web3 Partner

Crypto exchange Kraken has announced a partnership with Williams Racing, becoming the team's first-ever official crypto and Web3 partner. The collaboration aims to connect racing fans worldwide with the crypto community.

Selected Kraken NFT holders will have the opportunity to see their digital collectables displayed on the rear wing of the Williams Racing car, which will also feature Kraken branding throughout the 2023 FIA Formula One World Championship season. The partnership will include additional benefits such as exclusive content, fan pop-ups, and co-branded merchandise.

"We’re excited to get the partnership underway to offer our fans cutting-edge crypto and web3 experiences, while also enabling Kraken to reach new institutional clients and businesses through our network and events,” Williams Racing commercial director James Bower said in a statement. 

Despite challenges in the industry and a slight decline in crypto-related sponsorships this year, the Web3 sector remains robust, with new brands joining the race. Crypto.com continues as a global Formula 1 partner alongside major companies like Aramco, AWS, DHL, Heineken, MSC Cruises, Pirelli, Qatar Airways, Rolex, and Salesforce.

State of the Crypto by Top Tier Exchange Volume

Build your project with the CryptoCompare API

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.