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Photos show the 2 hand in hand inspecting the launch of the countrys largest ballistic missile. All right, those are the headlines. Im emily angry. The news continues here after counting the cost spiraling costs dwindling supplies. The shock is being felt around the world with the war in ukraine, triggering gas supplying uncertainty. Europeans of bracing themselves for an unprecedented winter. Al jazeera ripples on the human ghosts of the Windsor Energy crisis. I. Hello, im rob matheson, this is counting the cost on al jazeera, your weekly look at the world of business and economics. This week its been called criptos Lehman Brothers moment. And the collapse of the f t x empire has shaken the crypto currency market. So can the crisis be confined on, on investors losing trust in crypto . Also this week, a Tech Industry layoffs for he is reviving memories of the stock market crash 22 years ago. But why are firms cutting down jobs and is at the end of the pandemic . Boom, plus will the warning you train help or hinder world wide efforts to shift from fossil fuels to Renewable Energy . Ah, f t x has been considered one of the safest and most reliable exchanges of a free wheeling crypto currency industry. Which wants to bring tokens into the financial mainstream. But some bank when fried zen pock collapsed almost over night, highlighting the extreme volatility of the virtual currencies. The downfall has sent shock waves across the market and raised questions over its viability. Hes apologized, but that hasnt helped more than 1000000 creditors who are potentially now out of pocket. Well, the company was valued at 32000000000. 00 us dollar in january, but by mid november, it was filing for bankruptcy protection. After failing to secure a rescue from wyvil exchanges, f t x is now under criminal investigation in the bahamas. U. S. Federal prosecutors are also looking into the case. The crisis is brought back memories of the collapse of Lehman Brothers. Thats when the downfall of the Investment Bank sparked the 20 o 8 financial crisis. The ripple effects of f t x is collapsed, have been felt throughout a struggling crypto currency market. Billions of dollars have been withdrawn from exchanges and the prices of several digital coins have dipped. Bitcoin fell to around 16 and a half 1000. 00. It had reached a peak of more than 68000. 00 in 2021. Entire markets. Capitalization now stands at 900000000000. 00 thats done from 3 trillion just one year ago. And that follows a series of setbacks for the trip to currency industry. Now we are in made the stable coin tedder, us deep crashed and broke. Its 1. 00 to 1. 00 peg with a dollar. Almost amongst later, the Landing Platform celsius paused withdrawals, blaming extreme market conditions. Then came the bankruptcies, including one bite, 3 arrows capital. One of the most prominent crypto hedge funds in the world. Johnny has from berlin is jones good off. Hes chairman of the digital utah association. Thats the d e a. And head of Digital Assets and currencies at a tonic. Sir, good to have you were this, the collapse of f t x has seems to have sent shock waves through the industry. Why was f t eggs so important . So if people today want to buy crypt occurring, if they do go buy a trip to exchange and f t x month, one of the largest with, you know, millions of users with a 1000000000. 00 Trading Volume every day, right . So they were one of the key players. And what basically happens in the end is that f t export taking on very risky position. So they basically took the money off the clients and also the group to acid, to operate into leveraged leverage business, which in the turn out to fail, right, to turn out to provide substantial. And just, you know, 2 weeks ago the industry feared that something might going on with a few eggs and literally to the situation that more and more players withdrew their money. Right. Which basically brought them into the situation. That liquidity, you know, the grid if you wasnt there and which ultimately led to bankruptcy, filings of ex, extra, when we go, what about the people who didnt take their money out . What happens to their cash . Basically this remains to be seen, right . So its in the bankruptcy process now, so we dont know how much of the money people are back off of there. And so this remains to be, this will definitely be, you know, a step thanks for the Crypto Exchange space. And well, you know, also leads to a waiver, probably more regulation into space because this was also one of the key issues that f t x was not regulated. Understand. I wanted to ask you about that because one would think that this is going to get significant leverage to those who want to see more transparency. And perhaps more importantly, want to see more regulation. This is on the short term of Course Development about active, horrible, right. Lots of people lost money. Lots of investors lost money. But i think on the long run that can also be like a chance for crypto because it doesnt change anything off the fundamentals of a crypto. So the f t x failed failed. What governance issue of f t x. Right . So horrible Risk Management, very speaking legit. Position, but also the regulatory regulatory gap you mentioned. So we dont need regulation. We also do need more kind of a lot of regulation because its not sufficient if one countries regulating because then entities can move to other countries and those i think what we do need right now. And also, what we will see over the next years to come as a learning of the case. I dont understand particularly very much about cryptic currency. Its, its a very complex situation. And to those people like me, it would seem that this is based essentially on trust. It is on a trust that the system is actually going to work when you get 50 situations like this. Obviously, that trust gets undermined. How far do you think the ripple effects of this are going to go . Why are other exchanges going to be affected by this . So in the short term, i think they could be, the other exchanges are affected. We dont know yet. Right . So the tuition is so complicated, we dont know what, what ripple effects will come out here. But i think whats really important to understand it is really not, you know, big when, if the room be cooked are not to blame here, right . Its extra blame. Its a company to blame, so the kind of analogy i would like to give this when buyer can become bankrupt, we didnt say docs are a bad thing, right . Reset basically, you know, one company company, it made a horrible mistake, right . We also need to x, which we do you and might be off the regulation. But i think that its really important that it doesnt change any of the continental crypto. But of course, show us that we need more regulation and we also costs proper risk measures governance method inside these very, you know, important a large group to Exchange Companies as well and happy to see the setbacks in the market, particularly over the last year. I mean, the market capitalization just being done some c trillion just one year ago to 900000000000. 00. Why is it being such a challenging year overall for crypto currencies . Yeah, so we do see that we are now in a, in the market for one year as you mentioned. And we thought, you know, the market kind of specialize in now and i think the markets are going down, which i think is a logical the development. What we shouldnt forget is that this development is not specific to crypto, right . Its specific to our kind of risky as a class. So we have seen that declines in terms of tex dot, for example, that within the past year also declined in a similar size as crypto. So i think the main reason why the technical course are, you know, general macroeconomic reasons. We do see the interest increases in the us that basically down the private off as that most of the risky as of but of course, and we do also crypto specific development. You know, we have seen her and were not crash half a year ago. We now do the f t x, but generally i would say that its the macroeconomic situations about, you know, interest rate, high high inflation or the recession. Every developments that are driving down the price of, you know, not a group the channel of risk. They the big money course to be made in those risky after those risky efforts that you were talking about earlier, those risky investments which down in this case f t x. But others, one would imagine, will be taking similar risks. There is going to be a lot of pushback if there is an urgency, a sense of urgency to bring in regulation and so on. Isnt that . Yeah, i think it kind of this right. And also why i mean we have checks what was located in the bomb up. They all had an entity, but there was no regulatory standard. And what i would basically car one regarding like more regulation, s b currently be in the you in the european union. There, the Marketing Group to regulation currently negotiated, which is also about, you know, exactly regulating these things. And i think this is what we need, not just in the you, in more countries. And also on a level that is basically, you know, kind of globally coordinated even this is of course, from a political level. Its definitely, you know, quite a challenge in terms of investment. So you think that investors are going to be a lot more cautious when it comes to the companies in which they invest. As you say, its not necessarily the crypt currency itself. That is the problem. It is the management that is the problem. Executive management, but the governors, the both part of the Risk Management weve, even after the bankruptcy filing some money kind of disappeared. Which of which of course cannot be the case for such last not, not companies. And in this regard. Right. And i hope that investors not completely, you know, basically dont enter the base again because that the continental use cases about crypto that are really interesting. That basic, you know, bring p crypto can basically the to the fact that they include people to the financial sector, Financial Inclusion and you know, its, if it doesnt change any on the fundamental, i think something one should consider. And my also investors shouldnt step away because hes been market other markets where, you know, basically basically its being built. And i think this is also by people shouldnt shy away from trip them out. But of course on a regulatory side, there is definitely the need to tract. Really good to get your thoughts on. This is janice ross, thank you so much for being with us and counting the cause. Thank you very much for having me. The f t x, bankruptcy caps a series of challenges faced by Tech Companies industry founders of the morning about a looming recession. For months theyve been telling their employees to expect tough times ahead. Tech giants have long been hailed as employment havens with high salaries. But now some are making the van move of cutting thousands of jobs, while others are slowing hiring or stopping it altogether. Matter which owns facebook. Instagram on whats up is lane off more than 11000 employees from its worldwide had kind of 87000 twitter has cut about half a stuff amazon plans to cut jobs to and the list of companies trimming the workforce is growing. Its not just in the us tech start ups in asia and africa have been cutting their stuff to met a chief executive. Mcguckie was blaming the companys rapid expansion and said hes got it wrong. Invested millions of dollars in the so called met averse, pitching it as a Virtual Reality future in which people will work exercise and go to conses tech found or say the layoffs are partly because they just hire too many people, all twitches you on them ill must says his freshly acquired company could face bankruptcy. While joining us from oxford is a really little theater. Hes a professor, the Oxford Internet institute is also also the book cloud. Empires, how digital platforms are overtaking the state and how we can regain control. Really thank you very much indeed for being with us. Whats changing in the market thats forcing these layoffs that the Tech Companies . So one reason is obviously the overreach during the pandemic. So some extent, to some extent, what were seeing now is a correction. Amazon, for instance, has said that they simply hide to many people. Theyre expecting the good times to continue. And now the consumer demand is going down. And now theyre having to lay off. But another reason is the macroeconomic situation Rising Interest Rates and these are not unrelated to each other publicly listed companies are not able to raise money from the market at such favorable terms anymore. And startups that are bc funded or finding it much harder to raise funds from b c. So in order to extend their runway and make sure that they make it through to the other side of the looming recession, theyre having to cut costs. How much of this is also done to misjudgment by, on the part of the management . You said, of course, about that the, the over hiring during the pandemic. But we are used to hearing people like l. O mosque, amongst talk about make pronouncements about the state of the Tech Industry in the state of the tech in the world and almost getting it right most of the time. But this seems to be significant misstep. Whats going on . Yes, so it is significant. This is the 1st time christ met our facebook is laying off significant numbers of people in the history off the companies. So that israeli a sort of reckoning of his sorts. And you can say that with metal suddenly mr. Zocker berg, he bet the farm on the idea of metal verse. He needed to discover a new vision for his company. The facebook run into a lot of trouble around social media manipulation and so on. And so he bet the farm on the idea that in the future people will be interacting with b r goggles in members. And that is proving to be a very costly and vision. And personally, im very skeptical about it as i think are many investors. And so partly broke the problems relate to his, lets say, i dont want to say yet misjudgment, because the jury is out there. But to this is very risky, bad. And then as for mr. Must twitter and he paid at 44000000000 for a company that was not profitable. And he came out with at least one idea for increasing revenues, which was to start charging for verification. And it turned out rather predictably, some would say that in fact, that was the value of destroying proposition because it decreased trust in the platform and therefore decreased advertiser or appetite. So now hes left with trying to cut costs instead to bring revenues and costs seem to balance and hands massive layoffs of twitter. You mentioned the influence of investors there. And of course, that is key because with regard to be the rise of Interest Rates that you mentioned as well, of course, investors are going to try and find a safe haven for their cash as often as they possibly can. And the fact is, interest has raised Interest Rates that stays people into more secure investments that maybe in some way had an influence in whether or not theyre going to continue the investment in and check companies. Does that mean that we are seeing a temporary see change in levels of invest with Tech Companies or do you think this is precision something longer term . Well, suddenly, if the if and to the extent that the Interest Rates come down again, then you would expect to see reallocation and portfolios towards attack and other stocks. But on the topic of investment, i think its also relevant to note that s t x the trouble Crypto Exchange was a big investor in a lot of web 3, encrypt those startups in africa for instance. And those start out may now be finding themselves in trouble. A lot of crypt though and web 3 startups also stored their funds on s p s. And now theyre unable to access those funds and reportedly at least one african startup has had to start laying off people because of this. So the sort of crash criptos Lehman Brothers moment is also contributing to the tech lay. Im, especially in africa. It seems, it always seems certain