AFP

Scientists find new population of polar bears in sea-ice free region

Polar bears face an existential threat from the rapid decline of Arctic sea ice, which they rely on as platforms to hunt seals.

But in a new study, scientists have identified an isolated subpopulation of polar bears in Southeast Greenland that instead make use of freshwater ice pouring into the ocean from the region’s glaciers, suggesting this particular habitat is less susceptible than others to climate change.

Their findings, described in the journal Science on Thursday, open up the tantalizing possibility that at least some pockets of the species might be able to survive further into this century, when Arctic sea ice is expected to disappear completely during summer months.

“One of the big questions is where in the Arctic will polar bears be able to hang on, what we call ‘persist,'” first author Kristin Laidre, a polar scientist at the University of Washington and Greenland Institute of Natural Resources told AFP.

“I think that bears in a place like this can teach us a lot about where those places might be.”

Laidre and colleagues first spent two years interviewing Inuit subsistence hunters who provided input and ecological knowledge, including harvest samples for analysis.

They then began their own field work, which lasted from 2015 to 2021, in a harsh region that was long understudied because of its unpredictable weather, heavy snowfall and jagged mountains. 

– Hemmed in –

Each year, the team would spend one month in springtime, staying in the nearest settlement Kuummiit, which is a two-hour helicopter ride from where the bears live. Fuel depots had to be staged along the route in advance down the coastline, creating a hopskotch-like commute to work.

The team tagged the bears with satellite tracking devices, and collected genetic samples by either capturing bears or firing biopsy darts into their rumps.

Thought to number a few hundred individuals, “they are the most genetically isolated population of polar bears anywhere on the planet,” said co-author Beth Shapiro, a geneticist at the University of California, Santa Cruz and investigator at the Howard Hughes Medical Institute, in a statement.

“We know that this population has been living separately from other polar bear populations for at least several hundred years.”

Unlike their cousins, the Southeast Greenland polar bears were found to be homebodies, seldom straying far to hunt.

Their isolation arises from the geography: they live in a complex landscape of fjords on the very edge of their range on the southern tip of Greenland, well below the Arctic circle, with nowhere to go. 

To the west there are an enormous set of mountains and the Greenland Ice Sheet, and to the east the open water of the Denmark Strait all the way to Iceland. They also have to contend with a rapid current that flows southward along the coast.

“We see that when they get caught in this current they jump off the ice and they walk back home to their fjords,” said Laidre. The team found that some of the tracked bears accidentally caught in this situation had to trek more than a hundred miles back home.

– Climate refuges? –

While sea ice provides hunting platforms for most of the Arctic’s roughly 26,000 polar bears, the Southeast Greenland bears have access to sea ice for only four months, between February and late May. 

For the remaining eight months they rely on chunks of freshwater ice breaking off the Greenland Ice Sheet in the form of marine-terminating glaciers.

“These types of glaciers do exist in other places in the Arctic, but the combination of the fjord shapes, the high production of glacier ice and the very big reservoir of ice that is available from the Greenland Ice Sheet is what currently provides a steady supply of glacier ice,” said another co-author Twila Moon of the National Snow and Ice Data Center in a statement.

There remains much to study about the Southeast Greenland polar bears. Measurements show the adult females are a little smaller than average and they appear to have fewer cubs, but it’s hard to infer much about what that means in the absence of long term data.

Laidre is keen to not oversell the study as one of hope. Polar bears — which in addition to being iconic in their own right are also a vital resource for indigenous people — aren’t going to be saved without urgent climate action.

But this population might have a better shot, and there are similar areas with marine-terminating glaciers on other parts of Greenland’s coast as well as the island of Svalbard that might become small-scale climate refugia.

“We as a community need to look at places like this and ask ourselves, is this a place where we might be able to have some small numbers of polar bears persisting in an ice-free Arctic?” said Laidre.

On US border, Mexican trans social worker offers expert advice

Mexican trans social worker Brigitte Baltazar saw her dreams shattered when she was deported from the United States, where she had fought for 20 years for a better life.

Now she has found herself a new role — helping other migrants to legally cross the border.

Baltazar was a 14-year-old boy when she illegally entered the United States, where she labored on farms picking tomatoes, dreaming of studying medicine.

She also transitioned from male to female, but she says that in April 2021 her life “turned to waste” when she was expelled to Mexico for not being able to regularize her residence status.

Now 35, with her long hair dyed red, Baltazar, from the impoverished southern state of Guerrero, has often faced brutal discrimination and prejudice, but says she has put her experience to good use.

“I’ve been through super tough situations, so I had always said that when I had the opportunity to help other people, I would love that life,” she told AFP.

Like thousands of others who are expelled or seek asylum in the United States, she ended up in a shelter for migrants in Tijuana, just on the Mexico side of the border.

Seeing pregnant women or people overwhelmed by lack of resources and information, she started to assist in any way she could.

– Finding a role –

In a short time, the leading NGO “Al otro lado” — which provides legal and humanitarian support to migrants — asked her to join its staff.

She now works in a camp with people who seek to enter the United States on “humanitarian parole,” a status that covers emergency medical treatment or visiting a sick family member.

“We try to handle the medical cases, the most complicated ones first,” she said, explaining she draws on her empathy for others after years of suffering derogatory comments on the street, in job interviews and from officials.

She says she is moved by the plight of Haitian migrants, who are discriminated against because of the color of their skin and are often surprised that she is willing to help.

And she says she experiences a special connection with members of the LGBTI community who want to enter the United States fleeing intolerance in their countries.

She encourages them to “defend their identity tooth and nail” and to persevere, saying “we already have that warrior soul, you know, that soul that can handle anything.”

The number of people trying to reach the United States through Mexico has soared in recent years, with the surge becoming a fierce political issue across Latin America as well as in Washington.

But in the camp, where faces of fatigue and uncertainty abound, Baltazar exudes warmth while she helps migrants fill out endless paperwork.

She even finds time to bump fists with little girls, bringing out a smile and lifting spirits.

“I have work that I love and I’m passionate about, and that’s why I’m happy. I’m living in a shelter and I’m happy, thank God I have the love of many people,” she says.

Trump election plot would have spurred 'revolution': ex-judge

A retired federal judge testified Thursday that Donald Trump’s demand for Mike Pence to reject the results of the 2020 US election would have triggered a “revolution” had the vice president obeyed.

J Michael Luttig had advised Pence that his role in overseeing Congress’s ratification of the 2020 election on January 6 last year was purely ceremonial — rejecting Trump lawyer John Eastman’s theory that Pence had the power to unilaterally overturn Joe Biden’s victory.

Luttig, a renowned conservative legal scholar, told a hearing of the congressional committee investigating the 2021 US Capitol assault that had Pence gone along with the plot, it would have triggered a “what I believe would have been tantamount to a revolution within a paralyzing constitutional crisis in America.”

The jurist outlined how close he believed democracy came to collapsing as he appeared at the committee’s third June hearing, which focused on the pressure campaign mounted by Trump against Pence to help the defeated Republican leader cling to power.

“There was no basis in the constitution or the laws of the United States at all for the theory espoused by Mr Eastman. At all. None,” Luttig said.

Liz Cheney, vice chair of the committee, described Eastman as the architect of a “nonsensical theory” he knew was based on false claims. 

“Under several of the scenarios, the vice president could ultimately just declare Donald Trump the winner, regardless of the vote totals that had already been certified by the states,” Cheney said, describing Eastman’s plan. 

“However, this was false and Dr Eastman knew it was false. In other words, it was a lie.”

– Inept legal challenges –

The committee is in the middle of a run of televised hearings on the insurrection mounted by a pro-Trump mob to prevent the peaceful transfer of power and overturn the results of the 2020 election.

It has already revealed testimony from many of Trump’s closest allies who said he was told repeatedly he had lost a fair fight to Biden but declared victory and pushed his election fraud narrative anyway.

Eastman’s theory, essentially, was that Pence had the power to reject states’ results due to allegations of fraud.

This could have handed the presidency to Trump, according to Eastman’s plan, because deciding the outcome would then have fallen by an arcane procedure to the House of Representatives. 

House Republicans, who had a majority of state delegations even though they didn’t control the chamber, would have selected the next president.

The committee showed testimony from Pence’s general counsel Greg Jacob saying he believed Eastman admitted in front of Trump on January 4 that his plan would violate federal law.

The insurrection took place two days later, delaying Congress certifying the election results for several hours.

The committee also played testimony from Trump White House attorney Eric Herschmann, who told Eastman the day after the insurrection: “Get a great effing criminal defense lawyer. You’re going to need it.”

As dozens of legal challenges dismissed as inept and ethically suspect failed in courts across the land, a desperate Trump turned to Pence for illegal help, the committee heard.

Trump tried to persuade Pence to intervene in the presidential election in meetings at the White House on January 4 and 5 and in a call the morning of January 6. 

– ‘Hang Mike Pence’ –

He used rally speeches and Twitter to exert intense pressure on Pence to abuse his position as president of the Senate to reject the election results as they were being ratified.

During his “Stop the Steal” rally ahead of the joint session of the House and Senate to ratify the election, Trump mentioned Pence numerous times as he told his supporters to march on the Capitol and “fight like hell.”

But Pence wrote to Congress that the Founding Fathers never intended the vice president to have “unilateral authority” to overturn election counts, adding that “no vice president in American history has ever asserted such authority.”

The mob whipped up by Trump threatened to hang Pence for failing to cooperate as they stormed the Capitol, and even erected a gallows in front of the building.

Cheney said last week that when the subject of the “hang Mike Pence” chants came up at the White House, Trump responded: “Maybe our supporters have the right idea” and that Pence “deserves” it.

“What the former president was willing to sacrifice — potentially the vice president — in order to stay in power is pretty jarring,” Democratic panel member Pete Aguilar said.

The panel attempted to draw a line from Trump’s pressure on Pence to the violence with a video clip of a rioter saying that he would “drag people through the streets” if Pence “caved” to pressure not to overturn the election.

Musk offers billion-user vision but few details to Twitter staff

Elon Musk pitched a vision Thursday to Twitter staff of a one-billion-user platform, but was hazy on potential layoffs, free speech limits and what’s next in his chaotic buyout bid.

While fielding questions in his first meeting with wary staffers, the Tesla chief offered no updates on his $44 billion deal that he has thrown into doubt in recent weeks.

Yet in comments from the employees-only virtual meeting of less than one hour, Bloomberg and New York Times reports based on leaks relayed his claimed passion for self-expression on the platform.

Musk said he wants to have “at least a billion people on Twitter” in what would be massive growth for a platform that has about 229 million presently.

The Tesla chief has already made comments on how he’d run the platform — including lifting Donald Trump’s ban — but his words this time were addressed directly to workers’ concerns.

Musk told Twitter employees he personally favors moderate political positions, but that users should be able to say outrageous things, reports leaked from the meeting said. 

He qualified that by saying that freedom of speech doesn’t mean an intrinsic freedom for comments to reach far and wide, according to the reports.

Musk answered a question about possible layoffs by saying the company “needs to get healthy” when it comes to its financial situation.

He endorsed advertising and subscriptions as ways to make money at Twitter, saying ads should be entertaining as well as legitimate.

Musk talked anew about making money at Twitter by charging to verify identities of those behind accounts, then making verification a factor in which tweets get higher ranking at the platform.

Regarding Twitter’s policy of letting people work from home, Musk said it would be an option only for those proven to be exceptional at their jobs, he was reported to tell the gathering.

“The Musk Twitter all-hands call was the wrong call at the wrong time in our opinion,” Wedbush analyst Dan Ives said in a tweet.

“Lots of answers Musk could not provide given fluid nature of deal.”

Ives added that the virtual exchange spotlighted a contrast between the kind of culture fostered by Musk and the “Twitter DNA.”

– Market not convinced –

A would-be owner addressing the troops of a company he or she wants to buy is a routine part of the merger playbook, but Musk’s bid has been anything but ordinary.

He shocked the tech world with an unsolicited buyout bid in April for the platform that is a key exchange for news, entertainment and politics.

The board eventually came around to supporting his $54.20 per share offer, but since then he has cast doubt on the deal but clashing with the firm’s leadership over user numbers.

Musk has kept employees and Wall Street on edge over how the buyout saga will end.

Reports coming out of the meeting evidently left the market unconvinced about the buyout, with Twitter shares slipping more than two percent in mid-day trades far below the purchase price agreed to my Musk.

The proposed sale has stoked protest from critics who warn his stewardship will embolden hate groups and disinformation campaigns.

US securities regulators have also pressed Musk for an explanation of an apparent delay in reporting his Twitter stock buys.

For his part, Musk has repeatedly raised questions about fake accounts on the platform, saying on Twitter he could walk away from the transaction if his concerns were not addressed.

Musk offers billion-user vision but few details to Twitter staff

Elon Musk pitched a vision Thursday to Twitter staff of a one-billion-user platform, but was hazy on potential layoffs, free speech limits and what’s next in his chaotic buyout bid.

While fielding questions in his first meeting with wary staffers, the Tesla chief offered no updates on his $44 billion deal that he has thrown into doubt in recent weeks.

Yet in comments from the employees-only virtual meeting of less than one hour, Bloomberg and New York Times reports based on leaks relayed his claimed passion for self-expression on the platform.

Musk said he wants to have “at least a billion people on Twitter” in what would be massive growth for a platform that has about 229 million presently.

The Tesla chief has already made comments on how he’d run the platform — including lifting Donald Trump’s ban — but his words this time were addressed directly to workers’ concerns.

Musk told Twitter employees he personally favors moderate political positions, but that users should be able to say outrageous things, reports leaked from the meeting said. 

He qualified that by saying that freedom of speech doesn’t mean an intrinsic freedom for comments to reach far and wide, according to the reports.

Musk answered a question about possible layoffs by saying the company “needs to get healthy” when it comes to its financial situation.

He endorsed advertising and subscriptions as ways to make money at Twitter, saying ads should be entertaining as well as legitimate.

Musk talked anew about making money at Twitter by charging to verify identities of those behind accounts, then making verification a factor in which tweets get higher ranking at the platform.

Regarding Twitter’s policy of letting people work from home, Musk said it would be an option only for those proven to be exceptional at their jobs, he was reported to tell the gathering.

“The Musk Twitter all-hands call was the wrong call at the wrong time in our opinion,” Wedbush analyst Dan Ives said in a tweet.

“Lots of answers Musk could not provide given fluid nature of deal.”

Ives added that the virtual exchange spotlighted a contrast between the kind of culture fostered by Musk and the “Twitter DNA.”

– Market not convinced –

A would-be owner addressing the troops of a company he or she wants to buy is a routine part of the merger playbook, but Musk’s bid has been anything but ordinary.

He shocked the tech world with an unsolicited buyout bid in April for the platform that is a key exchange for news, entertainment and politics.

The board eventually came around to supporting his $54.20 per share offer, but since then he has cast doubt on the deal but clashing with the firm’s leadership over user numbers.

Musk has kept employees and Wall Street on edge over how the buyout saga will end.

Reports coming out of the meeting evidently left the market unconvinced about the buyout, with Twitter shares slipping more than two percent in mid-day trades far below the purchase price agreed to my Musk.

The proposed sale has stoked protest from critics who warn his stewardship will embolden hate groups and disinformation campaigns.

US securities regulators have also pressed Musk for an explanation of an apparent delay in reporting his Twitter stock buys.

For his part, Musk has repeatedly raised questions about fake accounts on the platform, saying on Twitter he could walk away from the transaction if his concerns were not addressed.

Los Angeles warned over July 4 firework blazes during drought

The punishing drought gripping the western United States has claimed another victim: Independence Day fireworks, with Los Angeles city bosses warning private displays could spark dangerous blazes.

Americans celebrate the 1776 declaration of independence from British rule on July 4 every year with proudly patriotic parties that often include drinking and pyrotechnics.

But managers in Los Angeles, the second-biggest city in the country, are warning residents they should avoid backyard firework displays.

“All fireworks in the city are illegal for personal use and only professional and permitted firework shows are the places where Angelenos should go to celebrate the Fourth of July with a fireworks display,” City Attorney Mike Feuer said.

“The risk of devastating, quickly spreading fires sparked by fireworks is severe this year, not to mention the ever-present threat of serious, life-altering injuries. 

“That’s why we’re starting early this year, cracking down and urging Angelenos to leave fireworks to the pros.”

The western United States is in the midst of its driest period for a millennium, after years of below-average rainfall.

Firefighters say the wildfires they are dealing with across the region are larger and more ferocious, with dried-out plants and trees offering explosive fuel.

People living in southern California are being urged to save water to preserve dwindling supplies in local reservoirs.

That has included restrictions on outdoor watering, with many residents now expecting their once-luscious lawns will turn brown over the scorching summer.

Gazprom defends gas cuts as prices in Europe soar

Russian energy giant Gazprom on Thursday defended gas cuts to Europe as prices soared and tensions raged between Russia and the West over Ukraine.

Gazprom CEO Alexei Miller said that Moscow will play by its own rules after cutting daily gas supplies to Germany and Italy.

“Our product, our rules. We don’t play by rules we didn’t create,” Miller said during a panel discussion at the Saint Petersburg International Economic Forum in Russia’s second city.

Earlier this week, Gazprom slashed its natural gas deliveries via the Nord Stream pipeline, after saying Germany’s Siemens had delayed the repair work of compressor units at the Portovaya compression station. 

“For now, there is no way to solve the problem that arose with the compressor station,” Miller said.

“Siemens is still silent, trying to find a solution.”

Italian energy giant Eni also reported problems, saying it will receive only 65 percent of the gas requested Thursday from Gazprom.

Gazprom has said exports to countries that did not belong to the former Soviet Union were down 28.9 percent between January 1 and June 15 compared to the same period last year.

“Of course, Gazprom is reducing the volume of gas supplies to Europe,” Miller said, pointing out that the prices have increased several-fold.

“If I say we are not offended by anyone, then I am not pretending,” Miller said. 

Gas prices continued to soar on Thursday, galvanized by a sharp cut in supply from Russia. Europe’s reference natural gas price, Dutch TTF, reached almost 150 euros ($158) per megawatt/hour before falling to 134 euros in the afternoon. 

Moscow has lost several European gas clients after it demanded that all “unfriendly” countries pay for Russian natural gas in rubles in response to a barrage of Western sanctions over Russia’s military intervention in Ukraine.

Poland, Bulgaria, Finland and the Netherlands have had their natural gas deliveries suspended over refusing to pay in rubles. 

The Nord Stream pipeline was commissioned in 2012 and delivers gas from northwestern Russia to Germany via the Baltic Sea.  

The launch of the Nord Stream 2 pipeline that was set to double Russian gas deliveries to Germany was halted in response to Moscow’s military campaign in Ukraine. 

“Nord Stream 2 is under pressure and gas could be supplied to Germany even today via it. But it has not been put in operation because it is not certified,” Miller said.

EU countries have scrambled to reduce their dependency on Russian energy but are divided about imposing a natural gas embargo as several member states are heavily reliant on Moscow’s energy supplies.

US baby formula plant again halts production due to flooding

Abbott Nutrition has once again shut down a baby formula plant, this time due to heavy rains and flooding, less than two weeks after it reopened to try and mitigate a crippling US shortage.

The facility in Sturgis, Michigan resumed production on June 4, only to close down again earlier this week so the company could assess rain damage.

Severe thunderstorms that battered southwestern Michigan on Monday resulted in “high winds, hail, power outages and flood damage,” as well as “flooding in parts of the city, including areas of our plant,” Abbott said in a statement posted to their website Wednesday night.

“As a result, Abbott has stopped production of its EleCare specialty formula that was underway to assess damage caused by the storm and clean and re-sanitize the plant,” the statement said.

“This will likely delay production and distribution of new product for a few weeks.”

The plant, a major producer of formula, shut down in February and issued a product recall after the death of two babies raised concerns over contamination.

That worsened to a widespread forumla shortage caused by supply issues, which was particularly concerning to parents of infants with allergies or with certain metabolic conditions, who desperately scoured stores and online sources for the specialized formulas.

The crisis prompted President Joe Biden last month to bring in formula from Europe on commercial planes contracted by the US military. He also invoked the Defense Production Act to give baby formula manufacturers first priority in supplies.

Abbott, which controls about 40 percent of the US baby food market, had announced its hypoallergenic EleCare formula and should be back on store shelves around June 20.

In the statement Wednesday, the manufacturer assured consumers that it had “ample existing supply” of EleCare and most of its other specialty formulas to meet demand until production could resume again.

The formula shortage, coming at a time when soaring inflation and supply-chain delays have fanned a growing sense of unease among many American families, and Biden critics have seized on the situation to question the competence of his administration.

Developing countries left 'disappointed' at climate talks

Developing countries voiced “disappointment” as climate talks in Germany ended Thursday with frustrations flaring over a lack of momentum on helping vulnerable nations cope with the impacts of warming.

With world attention drawn towards other challenges, notably Russia’s invasion of Ukraine and spiralling food, energy and economic crises, the technical discussions meant to lay the groundwork for key United Nations negotiations later this year were mired in disagreements.

Representatives of nearly 200 countries arrived in the city of Bonn buoyed by the ambition displayed six months ago during the UN COP26 negotiations in Glasgow, where countries rallied around the urgent threat of climate change.

“After that sense of emergency had been established, probably the expectations were very high,” said Preety Bhandari, senior climate adviser at the World Resources Institute.

But the meeting produced little tangible progress, even on the emissions-cutting ambitions that countries have agreed are needed to meet the Paris agreement goal of limiting warming to preferably 1.5 degrees Celsius.   

Finance is an ongoing sore point, with a promise of $100 billion a year from 2020 to help developing countries adapt to a warming world still not met.

Another flashpoint at the talks has been the slow pace of work on “loss and damage”, the accelerating onslaught of impacts already being felt by vulnerable countries, like floods, heatwaves and storms.

Developing nations want a specific funding “facility” to help poor countries least responsible for climate change to cope with its impacts.

But that call has been rejected by wealthy nations, particularly the European Union and United States, who have said funding can be channelled through a network of existing humanitarian, development and climate organisations.

As the Bonn talks wrapped up, developing countries lined up to convey their displeasure at the slow progress on loss and damage, which is now being dealt with as a rolling “dialogue” that will end in 2024 with no clear outcome emerging.

They want the issue to be on the agenda at the COP27 meeting in Sharm el-Sheik in November.  

Pakistan’s representative, speaking on behalf of the G77 and China major developing countries, said the group was “dissatisfied”, while Zambia, speaking on behalf of Africa, said they were “concerned by the lack of progress”.

“We are disappointed by the lack of substantive progress,” said the representative of Antigua and Barbados speaking on behalf of the Alliance of Small Island States (AOSIS).  

He said countries were still waiting for assurances that “the finance we need now will be delivered at speed, or any time by 2025”.

– ‘Hypocritical’ –

Wealthy nations are concerned about any suggestion of legal liability that would put them on the hook for billions, if not trillions.

The European Union told delegates it had “engaged constructively” and promised to continue.

But campaigners say the current system puts the economic burden on the shoulders of the most vulnerable.

Harjeet Singh, Senior Climate Impacts Adviser, at Climate Action Network International said the EU “consistently blocked” discussions around finance for loss and damage and accused the bloc of having a “hypocritical stance”.

“If the EU wants to step up as a climate champion it needs to align with the most vulnerable in their fight for justice,” he said. 

Bhandari said work on cutting emissions could stall if countries do not give more weight to both adaptation and mitigation, adding that it would be up to political leaders to reignite the momentum in the run up to the UN meeting in Egypt.

Nearly 1.2 degrees Celsius of warming since the mid-nineteenth century has been enough to unleash a torrent of disasters across the planet. 

Alden Meyer, senior associate at E3G, said it has reached “boiling point” as impacts mount,  adding that countries can also see the billions that the US and EU are mobilising for the Ukraine conflict.  

“It’s not a matter of the money’s not there. It’s a matter of priorities,” he told AFP. 

“And if you’re saying climate is an existential crisis, and yet you’re treating other things as much more important in terms of where you’re putting your money, that doesn’t go unnoticed.”

Binance boss bullish despite crypto crash

Cryptocurrencies are here to stay and their dramatic recent crash is just part of an economic cycle, Changpeng Zhao, one of crypto’s most influential figures, told AFP in an interview on Thursday.

The China-born Canadian entrepreneur heads Binance, the biggest exchange in the market that boasted $32 trillion in transactions last year and 120 million customers.

“It does cause worries,” Zhao said of a slump that has wiped $2 trillion from the value of crypto assets in the past seven months. “But we expect this, it’s not unusual, the markets go up and down, stock markets go up and down.” 

The unflappable mogul, who talked to AFP at the VivaTech conference in Paris, largely steers clear of the flashy displays of wealth associated with many crypto entrepreneurs.

Casually dressed in a company polo shirt, the 44-year-old, who describes himself as a “normal guy”, calmly explained how the firm had weathered a storm that saw others collapse.

“I think we’ve just been very frugal in our spending,” he said.

“We didn’t spend heavily on advertising, we didn’t name stadiums, we didn’t sponsor Super Bowl.” 

He quickly added that he did not believe such outlays were necessarily bad, seemingly keen not to directly criticise competitors.

Zhao had earlier tweeted a similar jibe that many took to be directed at Coinbase, a US exchange that spent heavily on flashy ads but is now laying off hundreds of workers.

By way of contrast, Zhao announced this week that Binance was hiring 2,000 new workers.

– ‘Bad tool’ for criminals –

Binance operates in a largely unregulated corner of the economy that is accused of being a haven for money-laundering, scams, sanctions busting and even terrorist funding.

Zhao called the money-laundering links a “complete myth”.

“We work with law enforcement everywhere in the world,” he said, highlighting that his firm employs ex-law enforcement officers.

“With large data you can really figure out who owns which address with a fairly high degree of certainty,” he said of blockchain, the digital ledger that underpins crypto. 

“Because of that, most criminals do not use blockchain for criminal activity. It’s just a very bad tool.”

Nevertheless, he treaded carefully when asked if he supported further regulation. 

“The regulators don’t know what to regulate,” he said.

“We have to wait for the industry to develop a little bit and then figure out the regulations.”

He said it could take decades, pointing out that even now banks continued to face new regulations. 

– Killer apps –

Critics see crypto as a glorified ponzi scheme and believe the industry will not last for decades, but enthusiasts like Zhao are keen to compare it with the tech industry of the early 2000s.

He said many companies went to the wall in the 2000s but the sector emerged stronger, helmed by titans like Google and Amazon.

But there is a crucial difference — those internet pioneers had an obvious utility. Few can clearly state the utility of crypto.

Zhao lists what he sees as the “killer apps”, which amount to facilitating fundraising for start-ups and generating income for artists.

“It allows artists and content creators to access a global audience, you cannot do that with traditional art galleries, the infrastructure is just not there,” he said.

He also repeated the idea that cryptocurrencies would allow those without bank accounts to have some means of storing their wealth and transferring money across borders.

Though critics point out that high transaction fees, tricky to use software and low security mean this is unlikely to become reality any time soon.

And Zhao is reluctant to be drawn on how the prices of crypto assets might recover in the short term, preferring to fall back on the comparison with tech firms whose services we use every day.

“I believe in 20 years everybody will be using blockchain technology for transacting value,” he said. “But they may not even think about it.”

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