The Block: Crypto has the highest 'talent density' since the internet's early days, says GSR CEO

Episode 128 of Season 4 of The Scoop was recorded live with The Block's Frank Chaparro and GSR CEO Jakob Palmstierna.

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Founded in 2013, GSR is one of the oldest crypto market makers and is also an active venture investor.

In this episode of The Scoop, GSR CEO Jakob Palmstierna discusses how his firm is responding to the collapse of FTX and shares his forecast for what a crypto recovery might look like.

According to Palmstierna, GSR covered the losses of all of its customers who had funds stuck on FTX:

“We announced that customers of ours that had funds locked in FTX, we would reimburse them so they didn't have those losses, which is not ‘effective altruism,’ it's about creating some stability within the market and being here for the future.”

Although 2022 was filled with calamities for the crypto industry, Palmstierna says the underlying technology is continuing to develop:

“Everything that happened over 2022 has very little to nothing to do with the underlying technology of crypto. There are well-funded projects out there, there are really good builders — it's one of the biggest sections of talent density that we have seen since the early internet days.”

During this episode, Chaparro and Palmstierna also discuss:

How firms overlooked counterparty risk The details behind Binance’s industry recovery fund Liquidity conditions without Alameda in the order books Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from former FTX and Alameda founder Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.

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