Orlando Bravo is another well-known bitcoin investor who has frequently expressed optimism about the sector. In July of last year, Thoma Bravo joined a variety of other notable firms in a $900 million Series B investment round in Sam Bankman-FTX Fried's Trading Ltd. According to reports, the firm invested approximately $150 million in FTX and other largest crypto businesses.
"I've come to know that community a little more, and a few of the business tactics don't rise to the level of ethics that we're were all using to in private equity with your investors, your customers, and your community, and that has resulted in a bit disappointing," said the co-founder of Thoma Bravo in an interview with the Financial Times.
In terms of future transactions, Bravo stated, "We do more of what has been very, very successful, and if something is not yet successful, we don't rush to do ten other things...We're really happy with what we have, and we desire to see that grow and be productive before we can do a lot more."
While the executive chastised the industry for a disturbing lack of transparency, he also predicted that its ethical issues would get fixed over time as it matured.
Whether mature or not, the industry has ethical concerns
Another FT report earlier this year suggested that some exchange platforms with VC verticals may be profiting from their position. For example, the report stated that Coinbase might be abusing the 'Coinbase Effect' through Coinbase Ventures.
While the exchange quickly debunked the claims, the same platform was recently sued for "materially false and deceptive statements regarding the Company's business, operations, and compliance policies."
Furthermore, the collapse of the Terra ecosystem and the crisis's domino effect raised ethical concerns, with reports of personal harm in the midst of massive losses.
Notwithstanding these loopholes, regulations in the broader crypto sector appear to be catching up. The Texas Ethics Commission proposed new guidelines last year to proclaim crypto's role played by political committees, candidates, and officeholders. South Korea's Ministry of Science and Information and Communication Technologies (ICT) published the first set of metaverse ethical principles a few years ago.
While sports partnerships continue to be a lucrative option for boosting the visibility of crypto platforms, new marketing regulations have been tightened to protect investors.
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