The Block: Jump Crypto president unpacks the industry’s broken capital markets

Episode 1 of Season 5 of The Scoop was recorded remotely with The Block's Frank Chaparro and Jump Crypto President Kanav Kariya.

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Since its beginnings as a skunkworks intern project in late 2015, Jump Crypto has developed a multifaceted crypto strategy that spans proprietary trading, venture investing, and infrastructure development.

Although Jump had some exposure to FTX, the firm says it remains well capitalized.

In this episode of The Scoop, Jump Crypto President Kanav Kariya reflects on lessons learned during 2022 and analyzes the current state of the industry's capital markets.

According to Kariya, many crypto market participants struggled with proper collateral management over the course of last year:

"The perceived maturity of a lot of the participants in the market was clearly way out of line with what the reality was — the quality of the collateral was astonishing across the board."

Going forward, Kariya envisions deep-pocketed institutions from traditional finance entering the market instead of crypto-native startups.

As he explains:

"When it comes to institutional lending and prime brokerage, that feels like an opportunity for a much better capitalized player to step into the market at this point — it's not a startup opportunity in my mind."

During this episode, Chaparro and Kariya also discuss:

<li data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"> Lessons Jump Crypto learned the hard way in 2022. <li data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"> The evolution of the role of 'trust' in the crypto industry. <li data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"> How identity protocols and decentralized social graphs will change web3. 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.

This episode is brought to you by our sponsors Circle , Railgun , Flare Network, NordVPN About Circle Circle is a global financial technology company helping money move at internet speed. Our mission is to raise global economic prosperity through the frictionless exchange of value. Visit Circle.com/Scoop to learn more.

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