Investment Firm Goldman Sachs Set to Capitalize on FTX Upheaval

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December 8, 2022

Following the collapse of FTX that has negatively impacted the crypto industry, leading global investment firm Goldman Sachs is set to capitalize on the recent upheaval by acquiring affected crypto firms.

The collapse of FTX reportedly led to the drop in the valuation of some crypto companies as Goldman Sachs is currently watching closely to invest millions or purchase some of these firms as their prices have declined.

In a recent interview, Goldman Sach’s head of digital assets Matthew MC Dermott disclosed that the FTX debacle intensified the need for regulation within the crypto industry, noting that big banks are currently seeing opportunities in the space.

He added that his firm is doing the due diligence of observing the industry closely as it has spotted some interesting opportunities, in which it seeks to invest or purchase some of the affected crypto firms.

In his words, “We do see some really interesting opportunities, priced much more sensibly. FTX collapse definitely set the market back in terms of sentiment, there’s absolutely no doubt of that.

“FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform.”

He further disclosed that the ripple effects from FTX’s collapse have boosted Goldman’s trading volumes, as investors sought to trade with regulated and well-capitalized counterparties.

“What’s increased is the number of financial institutions wanting to trade with us, I suspect a number of them traded with FTX, but I can’t say that with cast iron certainty,” he said.

Also, Goldman Sachs CEO David Solomon disclosed that as the FTX drama unfolds, while he views cryptocurrencies as highly speculative, he sees much potential in the underlying technology as its infrastructure develops.

It is often said that crisis creates opportunity, and Goldman Sachs is one firm that is doing due diligence by being on the lookout for opportunities in the recent FTX collapse which it claims to have spotted.

So far, the investment firm has invested in 11 digital asset companies and is also developing its private distributed ledger technology.

On the other hand, the FTX collapse has had a serious effect on some companies who are currently bearing the brunt of the upheaval that has so far affected their valuations.

A case study of African fintech giant Chipper cash which saw its valuation drop from $2 billion to $1.25 billion. Reports reveal that FTX financed more than a quarter of Chipper’s cash extension round at $40 million.

Few analysts are skeptical that the fintech firm will maintain its current valuation in the next priced round seeing that its lead investor FTX is currently bankrupt.

In the broader crypto market, the collapse of FTX has fueled big volatility in the price of crypto assets.

Bitcoin has fallen to an all-time low, currently trading at $16,929, with other major cryptocurrencies falling sharply, as the impact of the dramatic collapse of FTX continues to ripple through the market.

Also, a report by cryptocurrency data aggregator Coingecko, reveals that FTX’s native utility token FTT, has since collapsed alongside the centralized cryptocurrency exchange, as it plunged by 90%, wiping out over $2.6 billion.

The crypto market has no doubt come under pressure as investors are unclear how the FTX saga will end, with the fear of a possible contagion across the industry.

Indiana Sues TikTok for Misleading Users About Child Safety and Data Security

By

Samuel Nwite

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December 8, 2022

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TikTok on Wednesday received a pair of lawsuits from the US state of Indiana, increasing the high-flying short-form video platform’s troubles in the United States.

The lawsuits accused TikTok of lying about its child safety measures, alleging that it has exposed children to many forms of danger.

The legal salvo from Indiana came in addition to steps taken by other US states such as Maryland to ban the use of TikTok for government officials, thus escalating security-based apathy toward the social media company.

“The TikTok app is a malicious and menacing threat unleashed on unsuspecting Indiana consumers by a Chinese company that knows full well the harms it inflicts on users,” said Attorney General Todd Rokita in a statement.

“With this pair of lawsuits, we hope to force TikTok to stop its false, deceptive and misleading practices, which violate Indiana law.”

The lawsuit said TikTok algorithms served up “abundant content depicting alcohol, tobacco, and drugs; sexual content, nudity, and suggestive themes” to users as young as 13.

The US authorities have been wary about the use of TikTok, particularly by government employees due to concern that the platform could serve as a conduit of espionage for the Chinese government.

TikTok has repeatedly denied that it has ties with Beijing and has promised to protect users’ data. But it has not stopped the growing concern that the platform poses a national security threat to the US. In June, a report emerged that TikTok employees in China can access personal data of American users.

The state also sued TikTok for allegedly deceiving customers into believing that “reams of highly sensitive data and personal information” were protected from the Chinese government.

In a statement, a TikTok spokesperson did not comment specifically on the case but said:

“The safety, privacy and security of our community is our top priority. We build youth well-being into our policies, limit features by age, empower parents with tools and resources, and continue to invest in new ways to enjoy content based on age-appropriateness or family comfort.”

TikTok has enjoyed unprecedented growth buoyed by youth adoption around the world. However, the US remains its biggest market. The company has been seen as a potential enemy to the US because of its ties to Beijing.

In 2020, former President Donald Trump issued an executive order halting TikTok’s business in the US. Though his successor Joe Biden reversed the order, Washington’s feeling about TikTok has not changed.

Calls for TikTok to be banned are growing across the US and states are increasingly taking steps to limit the use of the app.

Last week, FBI director Chris Wray warned that TikTok poses a national security threat, sparking fresh calls for the platform to be banned. On Wednesday, Texas called for “aggressive action” against TikTok.

TikTok has made changes to its operations aimed at taming the national security concern. In 2020, its parent company ByteDance moved its headquarters from Beijing to Singapore. The company has also partnered with American companies to move its data-bases to the US and Singapore.

But Wray said TikTok is currently in negotiations with the US government to resolve national security concerns, a development that will determine the company’s fate in the US. TikTok said it was confident that it will satisfy national security concerns.

“We are also confident that we’re on a path in our negotiations with the US government to fully satisfy all reasonable US national security concerns, and we have already made significant strides toward implementing those solutions,” the company said.

Where is Michel Foucault in Adeleke’s Inaugural Speech as Osun Governor?

By

Mutiu Iyanda

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December 8, 2022

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Senator Ademola Adeleke was sworn in as Osun state’s sixth Executive Governor on November 27, 2022. Hours have passed. Days have passed. Weeks have passed. But he hasn’t been governor of the state for a month. Opposition parties and individuals continue to express mixed feelings about his ability and capacity to lead the state. Regardless of the criticism that will continue to surround his administration, he will remain governor until 2026, unless the electoral tribunal and courts rule against him. Meanwhile, this piece examines his inaugural speech, with selected views, in relation to the position on power and knowledge of Michel Foucault, a French philosopher, social theorist, and historian of ideas. This is imperative, according to our analyst, as the public continues to perceive his recent executive orders as harsh and uncharacteristic of a new governor from a former opposition political party. What does Foucault say about the types of knowledge and power expressed by Governor Ademola Adeleke in his speech and recent activities?

Adeleke: Today, I stand on the podium of history with a sacred pledge to God and the good people of Osun State that my intellect, passion and strength will be devoted to nothing but the welfare, peace and security of our people.

Foucault: Truth is linked in a circular relation with systems of power which produce and sustain it.

Adeleke: As I accept the mantle of leadership entrusted upon me by the people of our dear State, I am conscious of the enormous challenges and responsibilities ahead of me and will beginning from this hour work day and night with deep sense of purpose to be a servant to you all.

Foucault: The individual, with his identity and characteristics, is the product of a relation of power exercised over bodies, multiplicities, movements, desires, forces.

Adeleke: Under my watch as the Governor of Osun State, I will boldly correct all past injustice, corrupt acts or policies by any previous administration which are against the collective interest of our people.

Foucault: There is no power relation without the correlative constitution of a field of knowledge, nor any knowledge that does not presuppose and constitute at the same time power relations.

Adeleke: Our administration will demonstrate a high sense of urgency, transparency, justice and innovation to tackle and solve the problems of poverty, illiteracy, disease, and poor infrastructure.

Foucault: To change something in the minds of people – that’s the role of an intellectual.

Adeleke: Your Governor will be a people’s Governor. I will be accessible, responsive, consultative and proactive in handling small and big matters of State Governance.

Foucault: To change something in the minds of people – that’s the role of an intellectual.

Adeleke: I know that as a product of the collective will of you my people, there is a heavy weight of history on my shoulders and I accept the urgency of your expectations, the depth of your aspirations and your conviction in me to build a better State.

Foucault: To change something in the minds of people – that’s the role of an intellectual.

Adeleke: All policies that are not favourable to the growth of effective local government administration will be reviewed in accordance with the law.

Foucault: Visibility is a trap.

Adeleke: No form of illegality will be allowed to stand and all acts of impunity committed by the immediate past administration on local government administration will be reversed following due process.