A report by the Bank for International Settlements (BIS) shows that retail investors lost money in cryptocurrency investments during the collapse of the Terra ecosystem and FTX last year as larger players, or “whales,” sold en masse. BIS researchers analyzed exchange data and found that many small investors lost money as larger or more sophisticated investors sold their coins just before the steep price declines in a phenomenon where many small scale retail investors “chase prices”. The report argues that the industry needs greater investor protection, and the trend shows the need for more security. The study also found that more retail investors entered the market as prices increased, and larger investors profited at the expense of smaller investors during the declines.
Japan and China held their first formal security talks in four years, but instead of easing tensions, the meeting highlighted differences over military build-up and territorial disputes. Japan expressed concern over China’s military ties with Russia and Beijing’s suspected use of spy balloons, while China said it was troubled by Japan’s military expansion. The talks took place against the backdrop of Japan’s worries that China may resort to force to take control of Taiwan following Russia’s attack on Ukraine, leading to conflict that could involve Japan and disrupt global trade. In December, Japan announced plans to double defense spending over the next five years to 2% of GDP to deter China from military action. China, which increased defense spending by 7.1% last year, spends over four times as much as Japan on its armed forces.
Microsoft has announced that it is releasing mobile versions of its ChatGPT-powered Bing and Edge browser app in an effort to increase market share in the search advertising industry, where Google dominates with 85% of the global desktop market share and 96% of the mobile search market share. Bing currently has only 8.9% of the desktop market and 0.48% of the mobile market. Microsoft introduced the new Bing, powered by OpenAI’s ChatGPT, along with an improved Edge browser for laptops and desktop computers earlier this month. However, it knew it couldn’t ignore the mobile market, where the majority of people access the web via their smartphones. However, the company faces significant headwinds in ensuring users choose its search apps over Google’s, which already comes pre-installed on Android smartphones and has a deal with Apple to be the default search engine in Safari.