Post-SBF Crypto Evolution & AI’s Role in Business: Insights from an Ex-FTX Investor
Arjun Sethi, a former CEO of Tribe Capital and a prominent figure in the entrepreneurial and investment landscape, recently discussed the impact of Sam Bankman-Fried’s trial and sentencing on the crypto industry. Sethi, known for his role in ventures such as Tribe Capital and Social Capital, shared his insights on the evolution of the crypto industry and the growing role of artificial intelligence (AI) in business.
Sethi highlighted the journey the crypto industry has undergone, particularly in light of the FTX bankruptcy filing in November 2022. He acknowledged that the sentencing of SBF marked a pivotal moment for the industry’s evolution, as it has navigated regulatory frameworks, secured approvals for spot Bitcoin ETFs in the US, and endured a crypto winter. Sethi emphasized the resilience and accelerated growth of the crypto sector, distinguishing between centralized and decentralized finance and exchanges.
While acknowledging FTX’s downfall as a “blip in the radar,” Sethi emphasized the industry’s increasing resilience. Both retail and institutional investors worldwide have contributed to the industry’s strength and momentum, allowing it to move forward and grow stronger through adversity.
Sethi also discussed his new venture, Termina, which has been spun out of Tribe Capital. Termina is a subscription-based AI software platform designed for quantitative diligence. Sethi stressed the importance of understanding the source and utilization of data in the context of AI and generative AI technologies. Termina leverages one of the largest proprietary data sets of private companies globally, encompassing crypto, public markets, and private markets.
Drawing parallels to the late 1990s tech boom and subsequent bust, Sethi addressed the potential for disillusionment with AI. He noted the cyclical nature of hype and disillusionment, suggesting that a similar phase might occur with AI before realizing its full business potential. Sethi highlighted the enthusiasm surrounding AI in today’s tech landscape, comparing it to the dot-com era. Unlike the speculative bubble of the past, modern companies, particularly those in the AI domain, have real revenues and are scaling at unprecedented rates.
Sethi emphasized how traditional industries are adopting software, machine learning, and AI to become more efficient. This adoption enables companies to do more with fewer resources, resulting in significant cost reductions and enhanced customer experiences. He cited Klara, a company planning to go public, as an example of how AI integration has reduced customer service costs by 80%.
As the crypto industry continues to evolve, the role of AI in business is becoming increasingly significant. Sethi’s insights shed light on the industry’s resilience, the potential of AI, and the ongoing technological advancements shaping the future of businesses worldwide.