Miami’s Nightclub Scene Impacted By Collapse of FTX

The collapse of FTX has affected various sectors of the crypto and web3 ecosystem. According to reports from the Financial Times, nightclubs in Miami have been affected by the exchange’s failure. Nightclub owners stated that the young, tech-oriented crypto bros who used to spend thousands of dollars on expensive drinks and tables at clubs have suddenly disappeared from the scene.

According to Andrea Vimercati, the food and beverage director of the Moxy Hotel group, the young professionals would often order several bottles of expensive Champagne and shower themselves without drinking. The staff members of the clubs claimed that the young entrepreneurs would often walk around the establishment and show their digital wallets. They would also often boast about how much money they were making.

Due to the sudden collapse of FTX and the falling value of cryptocurrencies, the nightlife scene in Miami has changed completely. Many crypto entrepreneurs who used to frequent the clubs have suddenly disappeared.

According to the operations manager of E11even, a nightclub in Miami, the company processed around $6 million worth of transactions in the first six months after it started accepting payments using cryptocurrencies. However, over the past three months, the club only recorded around $10,000 worth of transactions.

Several companies and individuals have already filed for bankruptcy due to the failure of FTX. On November 28, BlockFi, a payment processing company, announced that it had filed for bankruptcy. According to a report by Cointelegraph, on November 15, Liquid, a Japanese cryptocurrency exchange owned by FTX, announced on Twitter that it had suspended all withdrawals and payments on its platform.

In response to the sudden collapse of FTX, USI Insurance Services, a financial services company, partnered with digital asset custody platform G8 to expand its insurance coverage for institutional customers. According to the company, the new insurance policy, which was launched on November 28, provides coverage for up to $1 billion of digital assets that are stored in its cold vault and up to $125 million of assets that are stored in its physical custody. According to Lior Lamesh, the company’s CEO, the new insurance policy would help new institutional investors and existing customers expand their digital asset holdings.