<div data-pp-location="article opener" fr-original-style="" style="box-sizing: border-box;">Hello,The largest-ever analysis of Google’s ad practices on non-English-language websites reveals how the tech giant makes disinformation profitable.</div><div data-pp-location="article meta" fr-original-style="" style="box-sizing: border-box;"><div data-pp-location="article story-tools" fr-original-style="" style="box-sizing: border-box;"><div data-pp-location="share tools" fr-original-style="" style="box-sizing: border-box;"><a href="https://twitter.com/intent/tweet?url=https://www.propublica.org/article/google-alphabet-ads-fund-disinformation-covid-elections&amp;text=How%20Google%E2%80%99s%20Ad%20Business%20Funds%20Disinformation%20Around%20the%20World" target="_blank" fr-original-style="" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;"></a>Enjoy your reading.&nbsp;</div></div></div>

The best articles on technology at Aposto, curated by our editors. Topics include startup news, AI, fintech, gadgets, and more. 

The best articles on technology at Aposto, curated by our editors.

Aposto Tech

The largest-ever analysis of Google’s ad practices on non-English-language websites reveals how the tech giant makes disinformation profitable.

How Google’s Ad Business Funds Disinformation Around the World

From steam power and electricity to computers and the internet, technological advancements have always disrupted labor markets, pushing out some jobs while creating others. Artificial intelligence remains something of a misnomer – the smartest computer systems still don’t actually know anything – but the technology has reached an&nbsp;<a fr-original-style="" href="https://www.vox.com/future-perfect/2023/1/4/23538647/artificial-intelligence-chatgpt-openai-google-meta-facial-recognition" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">inflection point</a> where it’s poised to affect new classes of jobs: artists and knowledge workers.Specifically, the emergence of large language models – AI systems that are trained on vast amounts of text – means computers can now produce human-sounding written language and convert descriptive phrases into realistic images. The Conversation asked five artificial intelligence researchers to discuss how large language models are likely to affect artists and knowledge workers. And, as our experts noted, the technology is far from perfect, which raises a host of issues – from misinformation to plagiarism – that affect human workers.

5 experts on what ChatGPT, DALL-E and other AI tools mean for artists and knowledge workers

AI and the future of work

In today's article, Aposto's technology editor İrem Denli takes a look at the technology war between the US and China, and analyse the repercussions of this fierce competition.Enjoy your reading,Aposto Editorial Team

What is the latest situation in the technology war between the US and China? What will be the future repercussions of the steps and measures taken by the US against China?

⚔️ War of the Giants

Hello everyone!In this issue, we take a look at Matterport, which serves in many different areas such as real estate, aviation, accommodation, insurance, architecture, cultural tourism and is expected to have a say in the Metaverse.Enjoy!Aposto Editorial Team

An initiative from Stanford to shape the future of real estate and the Metaverse: introducing Matterport.

📸 Analysis: Matterport

Hello everyone,In this issue, we will talk about one of the worst realities of our day: Online child abuse. We will see how abusers&nbsp;stalk and abuse children, what kind of measures&nbsp;online streaming platforms take, and how we can protect children.Keep children safe,Aposto Editorial Team

Based on an analysis of Twitch profile data, screenshots, and videos conducted by a researcher between October 2020 and August 2022, at least 1,976 adult users systematically found and followed young users on Twitch during that time.

The darkest side of the Internet: Child abuse

Hello,This week, our tech editor İrem Denli writes about Internet censorship.Enjoy your reading,Aposto Editorial Team

How and for what purpose do governments censor the Internet? Which methods are most commonly used to censor the Internet?

How and why: Internet held 'captive' by governments

Hello, again!In this issue, we will look at the ‘e-sports’ sector, another sector that is linked to the gaming sector and continues to grow rapidly in direct proportion to it, while talking about its brief history, audience, and market value.&nbsp;Enjoy!Aposto Editorial Team

E-sports stands for the world of organised video games in which professional players or teams in professional leagues compete within the framework of competition. E-athletes from different leagues compete fiercely in popular video games.

Will e-sports be an alternative to football?

Hello again,This year, Elizabeth Holmes, the former founder of Theranos which is the subject to the biggest fraud case that Silicon Valley has ever witnessed, was sentenced to 11 years in prison as a result of the trial that had been going on for years. Thus, Holmes, who entered from the top among the most brilliant entrepreneurs of an era, ended up in prison.With the conclusion of Holmes' case, we decided to take a look at the new rising trend in the world of TV series, namely business and startup dramas, that shed light on the founding of startups.Enjoy!Aposto Editorial Team

Since last year, we spot a new trend that is rapidly emerging among producers: Productions based on actual events that revolve around the rapid rise and often just as rapid collapse of startups.

📺 Technology and drama: Business and startup dramas

Hello,In this issue, you can find the article 'The Napoleons of Big Tech' by Bill Emmott, former editor-in-chief of The Economist, Co-Director of the Global Commission for Post-Pandemic Policy.Enjoy your reading,Aposto Editorial Team

Article by Bill Emmott in collaboration with Project Syndicate

The Napoleons of Big Tech

Hello&nbsp;again, everyone!In this issue, we take a look at how FTX started to make a name for itself, how it started to&nbsp;rise, and how it suddenly declined.Enjoy.Aposto Editorial Team&nbsp;

Bankman-Fried and FTX are under investigation by at least five different U.S. regulatory agencies, including the Securities and Exchange Commission and California's Department of Financial Protection and Innovation.

A crypto tragedy: The unstoppable rise and sudden fall of FTX

Technology related articles and publications

Tech

War of Technology: USA vs. China

<img src="https://s3.eu-central-1.amazonaws.com/images.aposto.com/2023/0/3/1674636851541.jpeg" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.51" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">Today, I would like to talk about Matterport Inc., which we often hear about when talking about the Metaverse with companies claiming to be the Metaverse of the future, or announcing they are moving their brand to the Metaverse over the last three years. Matterport stands out with its potential to serve all these ‘Metaverses’ separately.Matterport is working on processing images and transferring them to the digital world with its artificial intelligence with patented, deep learning artificial neural networks, which it calls Cortex AI and defines itself as a ‘spatial data’ company.&nbsp;<img src="https://s3.eu-central-1.amazonaws.com/images.aposto.com/2023/0/3/1674637033526.jpeg" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.60" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">Cortex AITo put it more simply, with the comprehensive 3D data platform it has developed, it creates the digital twins of the world we live in and serves in many areas, such as design, construction, operation, and marketing. For example, if you have recently visited real estate sites, you may have seen virtual tours as well as photos while examining some real estate, and one of the companies that serves to create these virtual tours is Matterport.Matterport was founded in late 2010 by Matt Bell, a graduate of Stanford computer engineering, and began its life in 2011 with the addition of David Gauseback from PayPal, with two co-founders. In the winter of 2012, they had the opportunity to develop their products and networks by participating in the Y Combinator camp, perhaps the most important startup acceleration program and fund in the world. Today, with nearly 500 employees, the company, which is still striving to perfect the user experience by developing new products, both sells its own cameras and makes its platforms available. It also offers integration with its own applications and contracted 3rd party camera manufacturers on mobile phones and diversifies its revenues through the subscription it sells to the end user and creates monthly recurring revenue (MRR).<img src="https://s3.eu-central-1.amazonaws.com/images.aposto.com/2023/0/3/1674637121423.jpeg" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.51" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">The point where Matterport, which provides services in different fields, such as real estate, aviation, accommodation, insurance, architecture, and cultural tourism, differs from other companies doing this job: Being ahead of its competitors in many topics and being able to give its customers an end-to-end solution in a much simpler and faster way by including the features it distinguishes from them in its platform. For example, the 3D image processing technology they developed; After completing the shooting of a house, it allows design, object placement, etc. to be performed on the data obtained from the measurements they have carried out very precisely. Again, by defining the depth and coordinates correctly, it is possible to preview the house, whose images are created by sizing it from different angles in the ‘doll house’ format.<img src="https://s3.eu-central-1.amazonaws.com/images.aposto.com/2023/0/3/1674637163785.jpeg" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.51" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">'Matterport Dollhouse'To talk about the sectors that use Matterport's technology; After downloading the application to their mobile phones, real estate agents can complete the shooting of a house in a relatively short time such as 1 hour by using Matterport's tripod set, while offering potential buyers the opportunity to experience the house with laptop/mobile phone/VR devices without the need to visit the homes. In doing so, consultants develop their brand identities.In aviation, KLM Airlines, which creates digital twins of all its aircraft using Matterport, can save money and reduce its carbon footprint by moving crew training online.<img src="https://s3.eu-central-1.amazonaws.com/images.aposto.com/2023/0/3/1674637224931.jpeg" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.60" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">‘KLM dollhouse!’In the short-term accommodation sector, where competition is increasing, Sonder company cooperates with Matterport to distinguish itself from its competitors and offer a better experience, enriching the houses they offer with virtual tours and making user choices more stable.In the insurance sector, many companies can make their determinations more accurately while saving personnel mobility by including visuals used in their documentation both proactively and after any incident.While Matterport provides the opportunity to offer new experiences to its users in its recent company acquisitions, it pays attention to include companies that can work integratedly. In this way, it went to the field with VHT Studios, the real estate media service it recently purchased, started to provide shooting services and quickly increased its revenues. By acquiring Enview, which develops artificial intelligence on 3D scaling, they aim to improve their prediction and analysis capabilities.According to the data they announced in their 2022 3rd quarter presentation files, the company, which is in the customer group that pays only 63 thousand of its 657 thousand users, states that they have viewed 2.5 billion m2 area in 177 countries so far. Considering that global real estate has digital penetrations of less than 0.1%, there are many more doors they can open.When we examine the company's financial statements, we see that there are three main revenue items: subscription, service sales and product sales. We observe that Matterport focuses on increasing its sales through platform subscription in order to increase its financial efficiency&nbsp;and that product sales remain stable. Although the company does not have a high debt ratio with a total of 535 million dollars in revolving assets and a total of 55 million dollar liability, the fact that it faces a quarterly loss of 35-60 million dollars creates dissatisfaction among investors.When we round up the annual revenue of 38 million dollars announced in the last quarterly report, it seems unlikely to me that a company that generates revenue between 150-160 million dollars will move to operational profitability in the near future. Investors are probably also worth a company with rapid growth potential like Matterport with 790 million &nbsp;dollars in the market versus a book value of 606 million dollars, probably because of the need for cash that they think will occur in the coming years. It can be considered a very low valuation for a company that goes public with a valuation of 2.9 billion dollars after an investment of 640 million dollars through SPAC, but they are not wrong.In order for the concept of ‘Metaverse’, which I mentioned at the beginning of my article, to be embodied, companies that want to carry the twin of their physical world to the digital world have either met or will meet Matterport in the near future. In this way, Matterport will, of course, improve its revenue models in this area in the coming years. I don't know how marginal the revenues it will generate from here will benefit its total revenues, but I think that Matterport can always be a purchase target even if they are not direct competitors for leading companies in the field such as Meta, Apple, Amazon and Autodesk thanks to the position it will acquire and the technologies it continues to develop.<h2 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Moral of the story</h2>As I mentioned above, the company's founder, Matt Bell, is a graduate of Stanford University computer engineering. As we have done so far, we continue to think about the founders, the companies they have built on the problems they want to solve, and the experts' expertise by putting them at the centre of the discussion. So far, almost all of the founders have graduated from some of the most prestigious universities in the world, and many of them have been cutting-edge. These people have experienced the pleasure of growing and succeeding their companies while serving the ecosystem they are in.– Encore<h4 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Footnote:&nbsp;The author does not have an investment in the above-mentioned company and will not have in the next 6 months.</h4>

Physical form of the Metaverse: Matterport

On 21 September 2022, Bloomberg published a far-reaching <a fr-original-style="" href="https://www.bloomberg.com/graphics/2022-twitch-problem-with-child-predators/?sref=6UP70zYf&utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">report</a> revealing how child molesters systematically stalk children on Twitch, Amazon's online streaming platform. According to an analysis of Twitch profile data, screenshots, and videos conducted by a researcher between October 2020 and August 2022, at least 1,976 adult users systematically found and followed young users who live-streamed on Twitch during that time. The findings of the study demonstrate that these adult users, each with more than 1,000 children in their follow list, followed a total of 27,916 children and manipulated them, convincing them to perform everything from obscene dances to explicit sexual acts on live broadcast. The report also cites the average daily number of children targeted by abusers on Twitch in July 2022 alone as 673.Recently, following the criticism, Twitch <a fr-original-style="" href="https://www.bloomberg.com/news/articles/2022-11-22/amazon-s-twitch-makes-changes-to-prevent-child-predation?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">announced&nbsp;</a>some changes to the platform to increase the safety of young users. Stating that harassers are not welcome on the platform and will never be tolerated, Twitch stated that new practices have been introduced to ensure the safety of children on the platform, including mandatory phone verification to prevent children from opening accounts and a strengthened technology that detects and closes Twitch accounts belonging to people under the age of 13.However, child abuse is far beyond being just a Twitch-specific problem.<h2 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">How deep do the roots of child abuse go on the Internet?</h2>According to a <a fr-original-style="" href="https://www.theguardian.com/technology/2022/aug/09/self-generated-sexual-abuse-of-children-aged-seven-to-10-rises-two-thirds?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">study</a> conducted by the Internet Watch Foundation (IWF), the number of cases in which children between the ages of seven and ten were manipulated by adults to record moments of obscene behaviour online has increased by 2/3&nbsp;in the last six months. Based on this, while the IWF received 12 thousand reports of child abuse in the same period last year, this number was 20 thousand in the first six months of 2022. Furthermore, the report states that this disturbing global ‘trend’ has increased by 360% since the first half of 2020, when quarantines due to Covid-19 were implemented.UNICEF's official website <a fr-original-style="" href="https://www.unicef.org/protection/violence-against-children-online?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">reports</a> that 80% of children in 25 countries feel at risk of online sexual abuse and exploitation .The National Center for Missing &amp; Exploited Children (NCMEC), to which social media networks are obliged to report child sexual abuse material (CSAM), states that nearly 70 million CSAM were reported to them in 2019, and that a large proportion of these materials circulate on social media networks, especially Facebook. &nbsp;However, <a fr-original-style="" href="https://www.counteringcrime.org/how-the-internet-is-drowning-in-child-sex-abuse-content?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">NCMEC</a> states that there has been a 15,000% increase in reported harassment cases over the last 15 years.On the other hand, a survey of 40,000 school-age children conducted by the National Society for the Prevention of Cruelty to Children found that 25% of respondents had live-streamed with a stranger on a social media platform, while another survey conducted by the Canadian Centre for Child Protection <a fr-original-style="" href="https://www.fastcompany.com/90654692/on-social-media-child-sexual-abuse-material-spreads-faster-than-it-can-be-taken-down?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">found</a> that 67% of CSAM victims said that the online dissemination of sexually explicit images of themselves affected them as much as physical abuse because the images were ‘permanent’.A <a fr-original-style="" href="https://www.usnews.com/news/health-news/articles/2022-10-18/online-sexual-abuse-of-kids-is-common-perps-usually-friends-partners#:~:text=The%20researchers%20found%20that%2016,sextortion%20and%20commercial%20sexual%20exploitation.?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">survey&nbsp;</a>of 2,600 respondents found that 16% of respondents had experienced at least one form of sexual abuse before the age of 18, including non-consensual sexting, ‘grooming’, defined as a friendship between an adult/older person and a minor with the intention of a future emotional and/or sexual relationship, revenge porn, sexual harassment, and commercial sexual exploitation, which tended to occur when respondents were between the ages of 13 and 17. According to the report, girls and children who do not conform to gender norms are the most likely to be targeted by online sexual harassers, with 1 in 13 boys also falling victim to harassment. What’s worse is that, according to the report, 62% of the perpetrators' dating partners were friends and acquaintances, and 2/3 of the perpetrators were children under the age of 18.When it comes to child abuse and social media, another social media platform that has recently come to the forefront along with Twitch is TikTok, which is contained within China-based ByteDance. The fact that TikTok has a younger user profile compared to other social media platforms makes it a great tool for abusers. In this regard, many investigations are being conducted against TikTok, especially in the USA.&nbsp;According to the <a fr-original-style="" href="https://www.ft.com/content/d5549d48-8f02-464c-9c7d-17404a5b6d02?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Financial Times</a>&nbsp;on 15 April 2022, between 2019 and 2021, the number of investigations started by the US Department of Homeland Security aginst TikTok over child abuse increased 7-fold. NCMEC reports that TikTok reported approximately 155 thousand videos last year, while TikTok states that 96% of the content that violates the safety rules covering non-adult users is removed before anyone sees it.TikTok had recently <a fr-original-style="" href="https://www.forbes.com/sites/alexandralevine/2022/08/04/tiktok-is-storing-uncensored-images-of-child-sexual-abuse-and-using-them-to-train-moderators/?sh=17e08fcc5acb&utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">come to the fore</a> by offering a large-scale cache of uncensored images of sexually abused children as a reference guide to the employees of third-party companies that manage and monitor the content of the platform. Accordingly, TikTok was using images of child abuse that had been removed from the platform to train its moderators. While it is not known how many people have access to these images, ‘Its training materials have “strict access controls and do not include visual examples of CSAM.’ said TikTok spokesperson Jamie Favazza, on the issue.Another notorious social media account for child abuse is Instagram. Instagram, which reported approximately 3.4 million CSAMs to the NCEMC last year, was named the country's <a fr-original-style="" href="https://www.forbes.com/sites/zakdoffman/2019/03/01/surge-of-200-in-use-of-instagram-to-target-and-abuse-children/?sh=10510eec59c4&utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">‘leading’ platform</a> for child abuse by the NSPCC, the UK's leading children's charity, in 2019. The study, which covers an 18-month period, found that there were over 5,000 recorded offences of ‘sexual contact with children’ on the platform during that time, and a 200% increase in the number of recorded cases of Instagram being used to target and harass children. Another detail stated in the report was that the target audience was mostly children between the ages of 12 and 15; however, in some cases, this number fell below the age of 11.Stating that the data is ‘overwhelming proof that keeping children safe cannot be left to social networks’, Peter Wansless, CEO of the NSPCC, said that we cannot wait for the next tragedy before technology companies act, and that it is ‘vital’ for Instagram to more carefully design the basic protection service it offers to young people.<h2 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Precautions taken at all?</h2>Of course, social media platforms take certain measures to prevent online child harassment; however, the main reason why social media platforms are the target of criticism at this point is that they insist on not taking enough precautions as if they allow children to be sexually harassed online. Although the rules of most platforms state that users under a certain age are prohibited from creating an account, we all know that it is not difficult to bypass this so-called security. All you have to do is lie about your date of birth or use a parent's phone for verification. I am sure that those of us who were children, especially in the first years when Facebook started to become popular, have been through these paths. At least I did, I admit it.Recently, apart from Twitch, there was another tech giant that announced that it would increase security measures for children: Meta. Meta will automatically change the default privacy settings for child accounts on Facebook and will <a fr-original-style="" href="https://www.engadget.com/meta-is-trying-to-prevent-suspicious-adults-from-messaging-teens-on-facebook-and-instagram-130020996.html" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">make changes</a> to prevent ‘suspicious’ adults from messaging teens on Facebook and Instagram.&nbsp;One of the toughest laws targeting sexual harassment of children on the Internet is preparing to come into force in the United Kingdom. We know that the Online Safety Bill, which is expected to be groundbreaking in this regard, will introduce new rules that will force social media and other user-generated content-based websites to remove ‘harmful content’ revolving around children from their platforms. Under the bill, all platforms will be obliged to scan and remove illegal content.<h2 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Who bears the greatest responsibility?</h2>The continuous increase in the number of online child abuse, although the social media giants continuously take new measures and promise to continue to take new measures and make statements about how ‘abusive behaviour’ will never be tolerated on their platforms shows that this problem does not only start with social media platforms, but also shows that it will not end with social media platforms.&nbsp;At this point, the biggest duty falls on us: Mothers, fathers, sisters and brothers. For this reason, it is very important to make sure that your child does not sign up for social media platforms that you know your child is not old enough for; if necessary, install some surveillance software on children's smartphones that shows how much time they spend on which application; set rules about who children can communicate with on the internet and how long they can communicate; talk to your child about online safety multiple times if necessary, and most importantly, if your child is sexually harassed online, never blame them&nbsp;and get help from an expert in the field.

According to the ‘Turkish startup ecosystem 2022 HI’ report published by <a fr-original-style="" href="https://startups.watch/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">Startups.watch</a>, the fact that the Turkish gaming industry received 333 million investments in the first 6 months of the year and received the most investments in the game sector in Europe drew attention to the seriousness of this potential once again.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">First of all: What is e-sports?</h2>In short, e-sports stands for the world of organised video games in which professional players or teams in professional leagues compete within the framework of competition. Opponents from different leagues or teams, namely e-athletes, compete fiercely in popular video games such as Fortnite, League of Legends, Counter-Strike, Call of Duty, Overwatch, and Madden NFL. Meanwhile, many game enthusiasts, and we are talking about millions here, follow these games on online platforms or by participating in organised events, just like watching a sports competition. Through streaming platforms such as Twitch, gamers can watch their favourite e-athletes, and e-athletes can build their own fanbase.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">The very first e-sports tournament in history</h2>Although it is a concept that we have been frequently hearing in recent years, the roots of e-sports actually date back about 50 years. Due to the introduction of computer technologies into our lives in the 50s and the video games becoming a part of our lives for the next 20 years, the event that is considered the first video game tournament in history <a fr-original-style="" href="https://www.ispo.com/en/markets/history-esports-how-it-all-began" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">took place</a> on October 19, 1972.&nbsp;<img src="https://s3.eu-central-1.amazonaws.com/images.aposto.com/2022/10/3/1669803211378.jpeg" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="1.49" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">'Spacewar' — Wikimedia CommonsOn this date, 24 players came together at the ‘Intergalactic Spacewar Olympics’ hosted by Stanford University's Artificial Intelligence Laboratory to compete in ‘Spacewar’, known as the world's first digital computer game, and with this event, the foundations of the e-sports world were established. In the years after this tournament, where the winner received only a one-year ‘Rolling Stones’ subscription as a prize in contrast to today's millions of dollars, the unstoppable rise of e-sports began with events of games such as Asteroids and Space Invaders.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">So, who are e-sports watchers?</h2>In fact, Asian countries make up a large proportion of e-sports watchers. Based on 2019 data; 40% of internet users in China, 33% in Vietnam, 29% in the Philippines, 26% in Indonesia, 25% in Thailand, 24% in India,19% in South Korea, 19% in the United Arab Emirates, 17% in Taiwan, and 16% in Turkey <a fr-original-style="" href="https://cyberathletiks.com/how-many-people-watch-esports/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">watch&nbsp;</a>official e-sports tournaments.&nbsp;According to data shared by Newzoo, a total of 435.7 million people <a fr-original-style="" href="https://newzoo.com/insights/articles/the-esports-audience-will-pass-half-a-billion-in-2022-as-revenue-engagement-esport-industry-growth?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">watched</a> e-sports, 220.5 million being occasional and 215.2 million being regular viewers. In 2021, this number increased by 240 million, from 249.5 million to 489 million; whereas in 2022, it rose from 270.9 million to 532 million, with an increase of 261.2 million. According to Newzoo, a total of 640.8 million people will have been e-sports watchers by 2025.In addition, while the number of people who watched the NBA finals in 2016 was 31 million, the number of people who watched the League of Legends world finals match was 43 million is another indicator of the rising popularity of e-sports.When it comes to the gender of e-sports fans, although there is a misconception that, as in most sports, males have an overwhelming majority, we can say that this perception has now been changed according to the data published in recent years. The distribution of e-athletes aged 18 and over in the USA, where 38% were women and 62% were men in 2006, is <a fr-original-style="" href="https://www.statista.com/statistics/232383/gender-split-of-us-computer-and-video-gamers/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">45% female and 55% male</a>.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">Huge market value</h2>The value of the global esports market, which was worth 906 million dollars in 2018, is over 1.38 billion dollars by 2022. Nevertheless, the e-sports market is <a fr-original-style="" href="https://www.statista.com/statistics/490522/global-esports-market-revenue/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">projected to</a> continue to grow and reach a value of&nbsp;1.86 billion dollars by 2025. The e-sports market of Asia and North America, where only China currently makes up one-fifth of, is one of the world's largest e-sports markets in terms of value.<h2 fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">E-sports in Turkey</h2>According to Riot Games Turkey Manager Bora Koçyiğit, e-sports games stand out as the second most watched sport after football in Turkey. While highlighting that this fact e-sports is among the rising trends in Turkey, Orlando Carlo Calumeno, Chairman of the Board of Directors of the e-sports team fastPlay WildCats, who participated in the Bloomberg HT Business World program in 2021 and evaluated the Turkish market, states that there are 85 to 90 professional e-sports teams in Turkey, while there are thousands in the amateur league. Calumano also adds that the Turkish e-sports sector is a market worth&nbsp;850 million to 950 million dollars.&nbsp;<img src="https://s3.eu-central-1.amazonaws.com/images.aposto.com/2022/10/3/1669803335912.jpeg" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" ratio="2.82" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">via Startups.watch&nbsp;On the other hand, according to Newzoo data, as of 2018, there are more than 4 million e-sports viewers in Turkey. According to Gaming in Turkey, at least 29 million out of over 46 million people&nbsp;with internet access in Turkey actively play video games.

The junction of technology and drama: Business and startup dramas

By Bill Emmott&nbsp;LONDON – Companies have long had to manage “key person risk,” even taking out insurance against the possibility of losing top executives through death, illness, or injury. But the <a fr-original-style="" href="https://theconversation.com/dramatic-collapse-of-the-cryptocurrency-exchange-ftx-contains-lessons-for-investors-but-wont-affect-most-people-194692" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">collapse</a> of the crypto exchange FTX, Meta’s <a fr-original-style="" href="https://www.npr.org/2022/10/27/1131705422/facebook-meta-earnings-stock-price-fall-metaverse" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">plummeting</a> share price, and the <a fr-original-style="" href="https://www.bloomberg.com/news/articles/2022-11-04/how-elon-musk-s-twitter-twtr-takeover-turned-into-chaos-quicktake" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">chaos</a> at Twitter following its takeover by Elon Musk suggest that “key people” can pose a very different kind of danger. Call it “Napoleonic founder” risk. Perhaps investors and lenders should be demanding a premium to cover the risk that a star entrepreneur will one day become an egomaniacal dictator, burning money along the way.The risk is not new, of course. Business history is full of executives going rogue with corporate funds, and of successful entrepreneurs failing to realize that mature, publicly traded companies are not their personal playthings. But with each business cycle, it seems, old lessons must be relearned.Following the dot-com crash at the turn of this century, the storied American investor Warren Buffett famously <a fr-original-style="" href="https://www.berkshirehathaway.com/2001ar/2001letter.html" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">quipped</a> that “you only find out who is swimming naked when the tide goes out.” Such is the modern business cycle: it flows eternally from optimism to pessimism, and from boom to bust. Yet Buffett might have added that the optimistic high tides are the moments when precautions must be put in place. Once you have been confronted with the naked truth, your money may already have been lost.This was <a fr-original-style="" href="https://www.economist.com/briefing/2022/11/17/the-failure-of-ftx-and-sam-bankman-fried-will-leave-deep-scars" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">certainly true</a> in the case of Sam Bankman-Fried and FTX, which was valued at as much as $32 billion earlier this year. Few will sympathize with those who have lost money from the company’s collapse. Notwithstanding Bankman-Fried’s pretense of offering a mature version of crypto, everyone involved should have known it was a casino. And anyone who was paying attention to Bankman-Fried’s <a fr-original-style="" href="https://fortune.com/crypto/2022/11/22/sbf-ftx-bahamas-house-lifestyle/" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">extravagant lifestyle</a> should have seen that he was no Buffett.To be sure, it is difficult for investors to take precautions against such buccaneers. Those who back a company like FTX are looking for high-risk bets with the potential for massive rewards. Still, the smart investor ought to be able to detect signs that a buccaneer is becoming something closer to a pirate. With Bankman-Fried, the clues were everywhere: he was <a fr-original-style="" href="https://www.theguardian.com/technology/2022/nov/14/sam-bankman-fried-bahamas-penthouse-ftx-crypto" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">running the company</a> with a few close friends from a penthouse in the Bahamas.Likewise, former British Prime Minister <a fr-original-style="" href="https://www.project-syndicate.org/columnist/david-cameron-1" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">David Cameron</a> should have seen that something was awry with his highly remunerated advisory role at Greensill Capital well before the firm <a fr-original-style="" href="https://www.nytimes.com/2021/03/28/business/greensill-capital-collapse.html" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">went bust</a> in 2021. What, after all, was the firm’s Australian buccaneer-founder, Lex Greensill, doing with <a fr-original-style="" href="https://financialpost.com/pmn/business-pmn/is-billionaire-lex-greensill-building-an-airline" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">four private jets</a>, all maintained on the company’s tab?Since investment is all about making bets on an unknowable future, confidence, trust, and salesmanship are a big part of the game. While investors are nominally backing business plans, their belief in that plan often depends on their belief in a person. The founder of Theranos, Elizabeth Holmes, who has just been <a fr-original-style="" href="https://www.bbc.com/news/world-us-canada-63685131" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">sentenced to prison</a> for fraud, may or may not have believed that her firm could develop a technology to revolutionize the diagnostic-testing industry. But what mattered was her ability to convince investors that, with enough money, her miraculous vision could come true.A diversified portfolio is the main defense against losses from fraud or delusional thinking. The entire venture-capital industry rests on the idea that if you bet on enough ambitious start-ups, the gains from the rare success stories will far outweigh the losses from all the duds and rogues. During the long era of ultra-cheap capital – combined with the potentially global markets available to technology firms – the sales pitches became more seductive, and the bets much larger. But the basic principles have always been the same.With battle-hardened superstar entrepreneurs like Meta’s Mark Zuckerberg or Twitter’s Elon Musk, the issue is more complex. Having proven themselves over the past two decades, they are now more like veteran CEOs than start-up founders. Yet it is worth remembering that Napoleon Bonaparte also was a political and military veteran when he launched his disastrous invasion of Russia in 1812.As success builds on success, and as the billions accumulate and the empires grow larger, two things happen. First, the business – or, in Musk’s case, the business empire – becomes so large and complex that it needs professional managers, formal structures, and plenty of checks and balances. But, second, those who build multi-billion-dollar companies from the ground up often come to exhibit a sense of entitlement and impunity, behaving as though all this scaffolding merely obstructed their vision.The many years of cheap capital – a seemingly permanent high tide – obscured this tendency. The good times went on for so long that many investors forgot the basics, while politicians, happy to see job creation and growth in new industries, became far too indulgent toward tech billionaires, who often became major sources of campaign donations.Meta is a case in point. Anyone holding the company’s stock should have recognized the risks associated with the company’s <a fr-original-style="" href="https://www.businessinsider.com/mark-zuckerberg-control-facebook-whistleblower-key-man-risk-2021-10?r=US&IR=T" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">dual-class share structure</a>. Although Zuckerberg holds only 13% of all shares, he owns around 55% of voting shares, and thus enjoys carte blanche in the company’s decision-making.In the good times, this structure – shared by other tech firms, such as Alphabet (Google) – may have seemed to make sense. But with Meta’s share price having fallen by <a fr-original-style="" href="https://finance.yahoo.com/quote/META/" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">three-quarters</a> over the past year, and with Zuckerberg <a fr-original-style="" href="https://www.ft.com/content/0f4c676c-56a6-4b5e-850f-ddb78f9feb40" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">betting the company</a> by investing billions in creating a virtual-reality experience (the metaverse), investors are up in arms, even though they have only themselves to blame.Will Musk – or his lenders and investors – heed this lesson? Musk’s behavior at Twitter so far suggests that everyone involved is in for a costly education. He has already <a fr-original-style="" href="https://www.nbcnews.com/news/us-news/elon-musks-rapid-changes-twitter-raise-legal-concerns-experts-say-rcna57549" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">sacked half the company’s staff</a>, possibly breaking employment laws in the process. He now must come up with a way to make Twitter profitable enough to justify the $44 billion purchase price. That is a tall order. While the overall attention paid to Twitter may have increased, many top advertisers – the platform’s main revenue source – have already <a fr-original-style="" href="https://www.forbes.com/sites/bradadgate/2022/11/22/advertisers-hit-the-pause-button-with-twitter/?sh=2862ad7939f6" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">suspended</a> their campaigns.Napoleon fought more battles after his retreat from Moscow, some with great skill, but his reputation for invincibility never recovered. No one can unsee a naked emperor.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">Bill Emmott, a former editor-in-chief of&nbsp;The Economist, is Co-Director of the Global Commission for Post-Pandemic Policy.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;">Copyright: Project Syndicate, 2022. <a fr-original-style="" href="http://www.project-syndicate.org/" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">www.project-syndicate.org</a>&nbsp;

<h2 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">From 'everything' to 'nothing'</h2>Taking advantage of the difference between Bitcoin prices in Asia and the USA, Bankman-Fried, who made great profits from arbitrage trading strategies and founded Alameda in 2017, made use of the rise of crypto units and <a fr-original-style="" href="https://decrypt.co/114246/rise-fall-sam-bankman-fried-ftx" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">founded</a> FTX, the parent company and operator of cryptocurrency exchange FTX.COM with Gary Wang, a former Google employee when the calendar showed May 2019. The position of Bankman-Fried in the sector, which is called the ‘crypto saviour’ by some for his help to SushiSwap, which was in a difficult situation after its founder ran away in 2020, started to get stronger and stronger.Growing gradually until the beginning of 2021, FTX started to make a name for itself more and more in the mainstream with the help of alliances it established with athletes and celebrities. FTX, whose profile and trade volume grew significantly in this period, sponsored the Miami Heat arena with a 19-year contract worth 135 million dollars in just a few months, as well as e-sports club Team SoloMid for 10 years with 210 million dollars, and it had advertised by incorporating star names from different sports such as Tom Brady, Steph Curry and Naomi Osaka. Also, among the names sponsored by FTX was Mercedes' Formula 1 team.During this time, the company has received significant investments from different investors. Having collected exactly 1 billion dollars in the Series B investment round, the value of FTX reached 32 billion dollars with 421 million dollars it received in July 2021 and 400 million dollars in last January.However, while all this was going on, the reality behind the scenes was much different than it seemed. According to some reports, client funds at FTX were being used improperly&nbsp;to stop the bleeding at Alameda. Based on an <a fr-original-style="" href="https://www.coindesk.com/business/2022/11/02/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet/?outputType=amp&utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">article</a> published by CoinDesk, FTX's user transactions and funds from investors were transferred to Alameda; Alameda was also investing these coins in crypto projects, including SBM. As stated in the article, about 5.8 billion dollars of the 14.6 billion-dollar-worth of crypto assets within Alameda are held in FTX's token; roughly 2.2 billion was invested in crypto projects such as SERUM, Oxygen, and MAPS, including Bankman-Fried. After these allegations, Changpeng Zhao, CEO of Binance, the largest crypto exchange in the world, announced that his company will sell and liquidate all the FTTs it earned from the 2.1 billion-dollar-FTX exit that happened in 2021. Following this, the value of FTT, which was trading at 25 dollars, crashed 30% in just a few hours to 6 dollars, which resulted in millions of people losing money.Afterwards, with the effect of the sharp decline in the crypto market since the beginning of 2022, crypto enthusiasts who learnt to approach digital assets more cautiously stepped in, and at this point, something we can call ‘<a fr-original-style="" href="https://blogs.cornell.edu/info2040/2022/11/11/why-did-ftx-go-bankrupt-analyzing-the-companys-downfall-through-herd-behavior-and-bayes-theorem/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">herd behaviour</a>’ occurred. One after another, FTX customers began withdrawing their crypto assets from FTX, and as this trend snowballed, the number of people withdrawing their assets from FTX increased day by day. At one point, the situation became such that there was a gap that was almost impossible to close between the existing FTX funds and the demand to withdraw the assets. With the failure to meet these demands and the collapse of FTT, the cryptocurrency exchange came to terms with what is called a liquidity shortage and FTX’s fall began.In order not to have the same problem with conventional banks under normal circumstances, the federal government introduced FDIC (Federal Deposit Insurance Corporation) insurance in the 1930s as a result of the economic crisis, known as the Great Depression. In case of a similar situation, this insurance, which covers the establishment and protection of public confidence in the US financial system, <a fr-original-style="" href="https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">aims to</a> secure deposits of 100 thousand dollars or less per depositor deposited in demand and savings accounts in banks and savings institutions that are members of the FDIC system. On the other hand, the fact that FDIC insurance is peculiar to the traditional banking system means that crypto reserves, such as FTX, are not supported by this insurance.Aiming to prevent the crisis caused by the liquidity problem, FTX took its chances in stopping all user transactions; however, this made users even more angry as their money in FTX melted away quickly. Some lost half their money, some lost all.Later on, Changpeng Zhao <a fr-original-style="" href="https://techcrunch.com/2022/11/08/binance-signs-letter-of-intent-to-acquire-ftx/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">announced</a> that he started negotiations to buy off FTX with an undisclosed deal; however, less than 24 hours after the announcement, Zhao called out the <a fr-original-style="" href="https://www.cnbc.com/2022/11/09/binance-backs-out-of-ftx-rescue-leaving-the-crypto-exchange-on-the-brink-of-collapse.html" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">cancellation</a> of the deal, this time ‘as a result of the latest news reports on corporate due diligence as well as misused client funds, and US agency investigations.’ According to Zhao, the situation, in which FTX sank, was far from being salvaged.At this point, with his statement, Bankman-Fried said that all responsibility and blame belonged to him, and while explaining that he was investigating all options, crypto analysts were alarmed. It was stated that the possible bankruptcy of FTX will create an earthquake in the entire crypto market and lead to a meltdown.On Thursday, November 10, it is reported that FTX once again <a fr-original-style="" href="https://www.reuters.com/technology/ftx-suspends-onboarding-new-clients-2022-11-10/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">suspended</a> new customer purchases and withdrawals until further notice, and Bankman-Fried reportedly met with Justin Sun, the founder of cryptocurrency Tron, and sought to create a 9.4 billion-dollar ‘<a fr-original-style="" href="https://www.reuters.com/technology/exclusive-bankman-fried-seeks-94-bln-package-ftx-rescue-sources-2022-11-10/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">recovery package</a>'. By November 11, however, SBM admitted defeat and FTX <a fr-original-style="" href="https://www.engadget.com/ftx-bankruptcy-ceo-sam-bankman-fried-resigns-155552534.html" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">filed for bankruptcy</a>.<h2 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">What happened then?</h2>Following FTX's filing for bankruptcy, Zhao <a fr-original-style="" href="https://www.reuters.com/technology/binance-halts-ftt-deposits-ceo-says-2022-11-13/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">called for</a> other exchanges to do the same, saying Binance had stopped deposits in FTT. Just hours after the filing, FTX said that despite freezing withdrawals, millions of dollars worth of digital assets had <a fr-original-style="" href="https://www.theverge.com/2022/11/12/23454702/ftx-unauthorized-transactions-drained-millions-from-the-exchange-hack-bankruptcy-cryptocurrency" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">disappeared&nbsp;</a>from FTX wallets. Still without any official statement regarding the cyber attack and the amount of money lost, CoinDesk stated that the amount is more than 600 million dollars, while Elliptic said it was around 473 million dollars.Also, the shares of leading cryptocurrency and blockchain companies <a fr-original-style="" href="https://www.reuters.com/markets/crypto-stocks-slide-ftx-prepares-bankruptcy-proceedings-2022-11-11/?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">dropped off</a>. Shares of Silvergate Capital fell by 10%, those of MicroStrategy by 2.6%, while those of crypto mining company Riot Blockchain and Marathon Digital fell by 5%.Bankman-Fried and FTX are under investigation by at least five different U.S. regulatory agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission, the Department of Justice, the Texas State Securities Board, and California's Department of Financial Protection and Innovation.&nbsp;<h2 dir="ltr" fr-original-style="" style="margin: 0px; color: rgba(0, 0, 0, 0.85); font-weight: 500; padding: 0px; box-sizing: border-box;">What does the future hold for crypto?</h2>In the light of recent events, it is <a fr-original-style="" href="https://edition.cnn.com/2022/11/11/investing/ftx-crypto-consequences-lehman/index.html" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">predicted</a> that the situation in the industry may worsen as investors step back from crypto. While JPMorgan analysts said that as we write these lines, the value of the world's most valuable cryptocurrency, Bitcoin, which was traded at 16,486 dollars, could fall below 13 thousand dollars. Moreover, Shan Jun Fok, co-founder of Hong Kong-based crypto investment company Moonvault Partners, said that this amount could be even below 10 thousand dollars and that Bitcoin has not seen below 10 thousand since 2020.Stating that he expects the fall of FTX to drive institutional investors away from the crypto sector, Fok adds that it may take years for the industry to regain faith in its promise.Under these circumstances, almost everyone is warning to be prepared for a period when the ‘crypto winter’ will be even harsher than it is now. Jayendra Jog, co-founder of SeiLabs, says that ‘In the short term, this is going to be really, really bad for the crypto industry.’ But he still doesn't think this will ‘end it all’ and hopes it will increase interest in more transparent, decentralised crypto exchanges.On the other hand, it would not be wrong to say that in the current situation, the regulators will also start working to put the crypto market under stricter rules. James Malcolm, head of currency strategy and crypto research at UBS, said that the events have strengthened the view that ‘all financial institutions need extensive regulation’ and that the crypto sector will probably be&nbsp;much more coherent&nbsp;world-wide, by 2024.Gary Gensler, chairperson of the US Securities and Exchange Commission, told CNBC that investors need ‘better protection’ while the crypto sector is regulated.Stating that the crypto industry went ‘a few years back’ with the bankruptcy of FTX, Changpeng Zhao also told the Financial Times that the effects of FTX's collapse will gradually manifest themselves, and ‘Especially for those close to the FTX ecosystem, they will be negatively affected.’ <a fr-original-style="" href="https://www.aa.com.tr/en/economy/bitcoin-down-6-as-ftx-files-for-bankruptcy-binance-ceo-warns-crisis/2735774?utm_source=aposto" rel="noopener noreferrer" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;" target="_blank">evaluated</a> Zhao.

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