Cryptocurrency exchange FTX was one of the last major players to file for bankruptcy last year. There were many such companies, with the scale of their operations resulting in billions of dollars in losses for investors. That’s the importance of the bearish trend – the market crash exposed numerous projects with fatal flaws that would have caused far greater damage to investors in digital assets if they had continued to operate.

It is fair to say that some prominent digital asset industry players also went out of business shortly after the FTX collapse. For example, on January 20, 2023, a bankruptcy petition under Chapter 11 of the US Bankruptcy Code was filed by the Genesis strip platform.

The event prompted the closure of the Gemini Earn platform from cryptocurrency exchange Gemini, which is owned by the Winklevoss brothers. The fact is that Gemini Earn users’ crypto-assets were being sent directly to the Genesis platform, making it impossible to continue providing such services.

What happens to cryptocurrencies next

According to Coindesk’s sources, all the right conditions are now in place for strong long-term growth in the Bitcoin price in terms of fundamental market analysis. For example, the banking crisis that began in March in the United States not only failed to collapse BTC, but also helped the coin’s price rise to a new annual high. Well, such records only fuel investor interest.

Last month, Bitcoin’s value rose 23 percent. Since the beginning of the year, BTC has already gained more than 70 percent.

According to experts, another positive factor is also affecting the entire digital asset market – the recent activation of the Shanghai update on the Etherium network. We’re talking about the update, which gave investors the long-awaited opportunity to take ETH out of stacking. At the same time, the influx of new coin offerings to exchanges led only to a rise in the price of ETH, to which the rest of the niche reacted positively.

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The Bernstein analysts’ report is also accompanied by the following quote.

The opportunity to build a new institutional financial stack on blockchain remains a worthy goal, and serious players are still aiming for the long term. This will be the first market cycle in which leading institutional investors will participate.

In other words, experts believe that professional, high net worth investors will be the main driving force during the next growth phase of the digital asset industry. In fact, some such companies have been linked to crypto since the last bull run. MicroStrategy, for example, began buying bitcoins in the summer of 2020, and as a result, it now has as much as 140,000 BTC at its disposal.

The largest investments will be in certain areas. One such area is artificial intelligence, according to Evan Cheng, co-founder and CEO of Mysten Labs. Here is his quote quoted by Decrypt.

Multidisciplinary venture capitalists are increasingly turning their attention to investing in artificial intelligence, driven by the technology’s proven value to consumers. ChatGPT has emerged, and developers are creating products and applications for consumers and other developers. In crypto, artificial intelligence will work specifically for digital asset owners.

According to Cheng, the growing interest of venture capitalists in artificial intelligence is evident in their social media activity. The $150 million investment in Character AI last month by the Andreessen Horowitz fund is telling in this context. Another fund, Lightspeed Venture Partners, was also involved in raising $101 million for Stability AI. It is working on the text-to-picture platform Stable Diffusion.

Even individual cryptocurrencies are investing in artificial intelligence. In February, Tron founder Justin Sun said his company was going to launch a $100 million AI development fund. As a result, Cheng believes that artificial intelligence, blockchain and Web3 are still complementary fields and can be leveraged to meet consumer demand.

Venture capital funds are following trends and investing in compelling technologies. In past bullish cycles, their interest has focused on the growth areas of decentralised finance (DeFi) and unique tokens (NFT). However, Cheng stressed the importance of projects delivering real results to attract the attention of big players. If they can do this, he said, start-ups will be able to attract the necessary investment to continue to innovate and grow.

Separately, dubious projects in cryptocurrencies and artificial intelligence are also out there. Last week, the CryptoGPT project, which raised $10 million from DWF Labs, caught the eye of digital asset lovers. It’s a second-tier network that’s positioning itself as connected to artificial intelligence technology.

The reason for the joke was that the corresponding chatbot CryptoGPT admits its affiliation with fraudulent projects. It said so itself, noting that some users don’t get paid after completing tasks, and the project’s website is not particularly transparent about its creators and payment methods. Here’s that line, which suggests the seriousness of such developments.


The collapse of crypto exchange FTX seems to have indeed been a necessary evil for the recovery of the digital asset industry. Although the platform had survived long enough, its collapse, given the actions of Sam Bankman-Friede and others in management, was necessary. Otherwise, the scale of the financial loss to exchange users could have been in the tens of billions of dollars, and it would have taken much longer to restore confidence in the coin industry around the world.