Challenges Facing Miami in Retaining and Attracting Tech Firms

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Since the introduction of the cryptocurrency deal by Miami Mayor Francis Suarez, he has wanted to make it one of the world's leading cryptocurrency capital. The main goal of the move was that he wanted to attain a "digital gold” for Miami which could boost the city's economic growth, thereby helping to attract varying cryptocurrency and blockchain companies. Furthermore, he also believed that the following cryptocurrencies would help address the existing income inequality since they will act as an alternative payment method for the underbanked and unbanked residents. Since a top official supported the goal, most expected it to flourish. However, the venture has yet to attain the compelling opportunities it was expected to have, making some people withdraw. Since crypto FTX was a promising venture, it is critical to understand the challenges that the potential customers have been experiencing. The following process will help to understand the measures that should be embraced to prevent the trend from continuing since it could threaten the tech firms' investment.
One of the problems facing the crypto FTX environment is the rise of con men. Most people in different parts of the world are not IT literate. The following weakness makes them take time before differentiating between real and fake information. Since most people know it, there has been an increase in people capitalizing on the vulnerability. The following issue has been too much to the level that it has reached prominent people. For example, Billing Corben claimed that there had been an increase in con men selling imaginary coins and magic beans to the un-detecting customers. This process has tainted the following environment's image. For example, before the person decides to use it, they must check its safety. After hearing some people complaining of being conned, their trust has been reduced by huge margin. This process has scared away some individuals who could have used the method. The Tech companies fail to invest in the region since they fear they can lack enough clients.
The other problem that exists is regarding the withdrawals that have been happening. For example, after the increase of con people, most lost trust. The lack of trust caused the value of the FTX to collapse. There was an increase in customers who started to withdraw funds in a bank-run-style exodus. For instance, one of the messages received from a staff claimed that it made the firm suffer from a "giant withdrawal surge." The main reason was that the users rushed to the firm to take about $ 6 billion in crypto tokens from FTX within three days. The following move put a huge pressure on the company since, under normal circumstances; the daily withdrawals were running at approximately ten million dollars. The pressure was so huge that the firm could struggle to maintain it. Most tech companies, therefore, fear investing in the region since they could lose many customers quickly due to trust issues.
The other problem facing Miami is that it has a series of economic cycles. One of the main reasons that the process is risky is that it is based on boom-bust economic cycles. Since there has been an increase in abnormal economic cycles, most people are usually afraid that the process could negatively affect their investments. Moreover, despite the weakness, there are fewer signs of improvement. For instance, there is no sign that the local crypto investors and government officials are rethinking how they can employ blockchain technologies and digital currencies. Most tech companies are, therefore, not seeing a need to continue embracing the following investment since these challenges will not be solved anytime soon. This process could make the company not perform to the maximum.
The other challenge that faced Miami was communication. For example, one day before the company decided to sell Binance, Backman-Fied made a mistake since he tweeted that FTX was "fine" and did not trade with any of the customers’ assets (Milmo & Hern, 2022). However, the tweet did not turn out positive with most customers since they started questioning the trade, making them conduct a series ...