Trust vacuum in Web3 after FTX failure; regulations loom

A SHAKE-UP in consumer and investor confidence has rocked Web3 companies, following a year filled with scandals, contagion and a collapse in crypto prices. Industry players are preparing for a leaner year and trying to pre-empt tougher regulations.

Web3 is touted as the next evolution of the Internet, tapping blockchain technology and relying heavily on cryptocurrencies to incentivise use.

The industry boomed in recent years on the back of cheap capital and institutional interest. But the crypto turmoil over the past months has caused some businesses to collapse and left survivors wondering how to rebuild trust.