Just like the overall economy, the cryptocurrency and NFT space was promising coming into 2022 before that optimism was put in limbo.
What was once one of the largest cryptocurrency exchanges in the world, FTX is now in bankruptcy with its founder in custody. Bitcoin’s value is down from its record high of around $69,000 last November, to less than $16,800 as of Dec. 21.
Amid national setbacks, Atlanta’s Web3 ecosystem, which refers to the next iteration of the internet that incorporates more decentralization and blockchain technology, saw a new incubator center, multiple funding deals and a company planning to go public.
“Even with some of the hiccups of 2022, the capabilities of crypto are going to continue to rapidly evolve, and the scalability is incredibly exciting,” said Graham Gintz, whose startup Knightley helps entrepreneurs connect with investors, package their pitch materials and analyze their tractions.
Gintz has seen first-hand investor sentiment around cryptocurrency because of his own company. He sees cryptocurrency continuing to become a more mainstream technology in 2023.
Looking back in 2022, here are the biggest stories of Atlanta's crypto industry:
Yellow Card plans to be Atlanta's next crypto-based unicorn
Four years ago, Yellow Card Inc. launched to power Africa’s cryptocurrency ecosystem. By the end of 2023, CEO Chris Maurice said in October that his company is targeting a $1 billion valuation.
If that becomes reality, the company would become the next crypto-focused startup to become a unicorn in Atlanta. Last year, crypto-exchange company Bakkt was valued at $2.1 billion after it went public in a special purpose acquisition company merger. There are at least six other startups that have reached the $1 billion milestone, many of which in the past two years.
Maurice's growth projection comes after reaching $57 million in funding. In September, Blockchain venture capital firm Polychain Capital led Yellow Card's $40 million Series B round.
Why this Atlanta Bitcoin ATM operator is going public via a SPAC deal
When Bitcoin's value was down and deals with special purpose acquisition companies (SPACs) lost some of their luster, an Atlanta Bitcoin ATM operator betted on both in pursuit of becoming the city's largest crypto company.
Bitcoin Depot, a local Bitcoin ATM operator, said in September it would become a publicly listed company following a merger with SPAC GSR II Meteora Acquisition Corp., a Florida-based SPAC. The combined company will be named Bitcoin Depot Inc. and trade under the ticker symbol “BTM” on the NASDAQ. The sale is expected to close by the first quarter of 2023.
The main reason for choosing the SPAC route and going public are because it will help Bitcoin Depot with the acquisition of other companies, will elevate its profile, attract talent and accelerate our growth, said company CEO Brandon Mintz, who founded the startup in 2016.
Blockchain startup incubator opens in Atlanta
Marlon Williams, an entrepreneur specializing in blockchain technology, watched as his hometown of Miami became a landing strip for cryptocurrency businesses.
Much of that growth came from the support of Miami Mayor Francis Suarez, who wants to make the city a hub for financial technology and cryptocurrency. Suarez's Twitter feed consistently promotes cryptocurrency and Miami as a site for company expansions. Miami became the first U.S. city to launch its own digital currency, MiamiCoin, according to Miami Inno.
When Williams moved to Atlanta last year, he saw a similar opportunity for his new city. Atlanta already has a reputation as a global fintech hub and a handful of crypto companies. Williams created an incubator to help blockchain companies grow and lobby for government support of crypto. Blockchain is a decentralized and secure public ledger most commonly used for cryptocurrencies such as bitcoin, ethereum or non-fungible tokens (NFTs).
The Atlanta Blockchain Center, which opened in June, includes a co-working space and a learning center for blockchain companies. It mimics the model of Atlanta Tech Village, which has seen massive success in scaling software and marketing technology companies. Salesloft and Calendly, both valued at more than $2 billion, launched at the Village.
Bernice King launches financial startup to close racial wealth gap
A crucial part of Martin Luther King Jr.’s efforts to improve social and economic conditions for African-Americans in the civil rights movement was housing.
Half a century after his assassination, his vision has not been fully realized. His daughter, activist and Atlanta native Bernice King, is continuing his work through a new digital banking and payment processing company called Ready Life, which will launch on Labor Day.
King is the top advisor for the San Francisco-headquartered startup, founded by former White House aide Ashley Bell. The startup aims to qualify disadvantaged people for mortgages and grow Black-owned small businesses.
Ready Life is based on blockchain technology from Provenance Blockchain Inc., which provides real-time payments without fees.
Other payment processors often charge fees and can take multiple days for money to appear in an account following a transaction, Bell said.
The platform's use of blockchain can lower costs for merchants and retail businesses by 80%, according to the company, which can give women- and minority-owned businesses an advantage by saving money.
Ready Life is embracing cryptocurrency and blockchain in part so that marginalized communities can regain trust in financial institutions, Bell said.
Bakkt chief financial officer resigns six months after company goes public
About six months after Atlanta’s digital exchange company Bakkt Holdings Inc. (NYSE: BKKT) went public, its top financial officer resigned, the company announced in May.
Andrew LaBenne held the position during Bakkt's transition into the public market. LaBenne’s resignation does “not result from any disagreement with the company,” according to a filing with the U.S. Securities and Exchange Commission.
Karen Alexander, Bakkt’s chief accounting officer, is now the interim CFO. Alexander had held the top accounting position since June 2021, before Bakkt went public.
Bakkt is a cryptocurrency and digital asset exchange platform that New York Stock Exchange owner Intercontinental Exchange Inc. (NYSE: ICE) launched in 2018. Bakkt was losing money since it went public through a special purpose acquisition company deal, though it had $355.2 million in cash on hand in May.
Atlanta crypto startup Ledgible gets $20M as investors pull back from tech
Ledgible, an Atlanta-based tax reporting and portfolio tracking platform dedicated to cryptocurrency, raised $20 million in June.
The round was led by EJF Capital LLC through its EJF Silvergate Ventures Fund. Other participants in the investment included Jam Fintop, Thomson Reuters Ventures, TTV Capital, Fenbushi US, Commerce Ventures, Nathan McCauley, and Perkins Coie.
Ledgible, which recently rebranded from Verady Inc., had approximately 30 employees and thousands of clients at the time. The investment will go towards hires in sales and marketing, in addition to enhancing its software, CEO Kell Canty said.
Cryptocurrency retail location to open in Buckhead
Kip Karani, a 27-year-old Atlanta-based entrepreneur, opened a retail location for cryptocurrency in Buckhead this past summer.
Anytime Capital LLC, located at 2549 Piedmont Road NE Suite 110, acts similar to a bank, where people can invest and manage crypto assets.
“With us, we can help older people and those who aren’t digitally inclusive,” said Karani. “We’re making the ecosystem for crypto easier to use and get into, not making it scary when you go on crypto exchanges that are confusing.”
Karani claims it is the first physical retail location established by a financial institution completely dedicated to crypto in the U.S. Atlanta Inno was not able to verify this information.
This Atlanta company allows you to buy a car with cryptocurrency
Tim Cox, founder of CarNow, first saw the potential of cryptocurrency when his son’s friend started buying bitcoin as a senior in high school.
Six years later, that 21-year-old now owns hundreds of thousands of dollars in cryptocurrency — but has no credit. Banks and dealerships would still give him higher interest rates despite his crypto assets.
Cox saw an opportunity for his customers — car dealerships. More than 5,000 dealerships, including 185 in Georgia, use CarNow to enable online payments, customer support and marketing. Allowing crypto payments could give them an edge on the competition.
CarNow is the first digital retail platform in the U.S. to allow people to buy cars with cryptocurrency, according to Cion Digital, the blockchain payment provider partnering with CarNow.
Atlanta Hawks launch first official NFT collection with blockchain company Giglabs
The Atlanta Hawks collaborated with Atlanta-based blockchain company GigLabs to launch the team’s first collection of Non-Fungible Tokens in March.
The “Harry the Hawk” collection consisted of 40 unique hand-drawn images of the team’s iconic mascot. Ten NFTs were up for auction each day on the Flow blockchain from March 14 through 17.
Some of the NFTs included exclusive experiences and products for bidders including a $500 gift card to the Hawks official store, access to a post-game press conference with the chance to ask questions, attendance at a pregame shoot around and a tour of the practice facility along with a chance to shoot hoops and get photos with players.
