While it may be too early to determine the real impact of the FTX disaster, industry experts in crypto-friendly regions think it will allow innovation.
For example, Dubai continues to experience an ecosystem activity. The Algorand Foundation, the group responsible for expanding the Alogrand blockchain, recently organised its second annual Decipher conference in Dubai on November 29 and 30.
The United Arab Emirates is still a budding blockchain capital. The Crown Prince of Dubai intends to contribute $4 billion to expand the region’s crypto ecosystem. This is anticipated to contribute 40,000 employment to the economy of the UAE during the next five years.
Nilesh Khaitan, the founder of AcmeDAO, a Dubai-based platform that enables decentralised apps to trade on-chain, said that speculations that the FTX crash is affecting crypto hotspots abroad might not necessarily apply to Dubai.
While Khaitan remains optimistic about Dubai’s prospects, he stated that regulatory clarity between the UAE’s central bank and UAE Free Zone areas providing crypto-specific licenses remains a priority for the region.
Additional crypto hotspots in the Middle East have recently indicated good enthusiasm. For instance, Tel Aviv, a well-known startup hotbed, continues to invest extensively in the overall development of the blockchain ecosystem.
In addition to Dubai and Tel Aviv, crypto hotspots within the United States are pressing forward. For example, Austin, Texas, continues to attract a lot of Bitcoin mining businesses. During the second annual Texas Blockchain Summit on November 17–18 in Austin, Senator Ted Cruz of Texas stated that he loves Bitcoin since the government cannot control it and that he acquires it monthly.
Miami, one of the world’s most rapidly expanding crypto hotspots, is also making progress. Miami is the most popular destination for NFT artists from across the globe. For example, Art Basel recently took held in Miami, showing several NFT artworks.
It is also fascinating to note that once-popular crypto cities like San Francisco are gaining momentum. Tegan Kline, the co-founder at Edge and Node, a Web3 software development company, stated that the company had just created a coworking space for startups and entrepreneurs in San Francisco.
In addition, regions such as Singapore show development in the Web3 industry. Oliver Xie, creator, and CEO of decentralised insurance platform InsurAce, stated that despite the impact of the FTX crash on Singapore’s crypto economy, there is now a greater emphasis on Web3.
Crypto hotspots confront persistent obstacles.
Although crypto-friendly towns continue to develop despite recent events, there are still a lot of obstacles that might result in sluggish growth. For example, regulatory clarity is still crucial for developing these ecosystems.
Yoav Tzucker, chief marketing officer of Collider Ventures, noted that regulation continues to be a sore issue for the Israeli sector. Tzucker continues to feel that regulation is needed, although Israel’s chief economist recently compiled a list of suggestions for how politicians should approach digital asset regulations.
Even in areas such as Dubai, where virtual asset regulation rules have been enacted, and bodies such as the Virtual Asset Regulatory Authority (VARA) have been established, regulatory clarity must be improved. Linda Adami, founder and CEO of the Dubai-based Web3 platform, revealed that while businesses such as Binance and Kraken have gotten licenses in Dubai, more local enterprises need to be built from the bottom up.
While crypto rules continue to be a big topic of discussion in the United States, Bratcher revealed that developing crypto towns like Austin need more capital flow in locations like New York and San Francisco.