Crypto Market Turmoil and Energy Web
Amidst the FTX and Alameda fallout, Energy Web’s work to decarbonize the global economy is only accelerating
For those in the Energy Web ecosystem who actively follow events in the crypto space, this has been a couple of painful weeks with the cascading series of events tied to the downfall of FTX and Alameda, not to mention a turbulent year-to-date with the collapse of Luna and 3 Arrows Capital. In light of these issues, we wanted to take a moment to reiterate that Energy Web is not financially affected at all by any of these events. Energy Web has zero exposure to FTX, Alameda, or any other third parties impacted during recent months.
We are an open-source enterprise grade Web 3 initiative founded by large energy market players; we understand our enterprise partners have placed a great responsibility on Energy Web’s shoulders to avoid negative publicity around Energy Web. This is exactly why we have always taken a very conservative approach to how we operate in the crypto space. Being compliant with regulatory frameworks is essential to our mutual success as well as our proactive approach to managing our financial reserves.
Energy Web has dual governance through the formal board of directors of Energy Web AG, which itself is governed by the independent members of the Energy Web Foundation Council. We conduct comprehensive annual audits that are executed by independent auditors; we also report regularly to the Swiss Federal Supervisory Authorities for Foundations. All crypto assets we own are in self-custody. Larger balances are governed by a multi signature secure setup with all private keys in hardware (cold) wallets. The only exposure we have on exchanges where Energy Web Tokens can be bought is via liquidity that must be provided to fulfill the requirements of individual exchanges. This liquidity is provided on verified exchange addresses that are owned by Energy Web. We have never, and will never, engage in constructs where Energy Web lends assets to a third party to provide any service. We manage the custodial risk of exchanges pro-actively but even if an exchange files for bankruptcy these exposures will be immaterial to Energy Web.
We certainly regret the negative impact of recent events, particularly for those that are affected. The fact is that these are primarily the result of bad if not criminal actors that gained trust from individuals and institutional investors. Energy Web’s conservative, enterprise-grade approach continues to pay dividends in the crypto space; we never participated in “exciting” schemes requiring our organization to trust a custodian. This in fact is the exact opposite of what we want to achieve with Web 3 technology and the Energy Web ecosystem. Our aim is to help companies navigate the energy transition with the assistance of our open-source technology stack, as evidenced by our recent announcement of a production-grade global platform to accelerate decarbonization of the aviation industry. It is extremely exciting and motivating to see enterprises building on the solid foundation we have built over the past 5 years. Our team could not be more excited to be deploying real solutions that unlock business value with Web 3 technologies.
About Energy Web
Energy Web is a global non-profit accelerating the clean energy transition by developing open-source technology solutions for energy systems. Our enterprise-grade solutions improve coordination across complex energy markets, unlocking the full potential of clean, distributed energy resources for businesses, grid operators, and customers. Our solutions for enterprise asset management, data exchange, and Green Proofs, our tool for registering and tracking low-carbon products, are underpinned by the Energy Web Chain, the world’s first public blockchain tailored to the energy sector. The Energy Web ecosystem comprises leading utilities, renewable energy developers, grid operators, corporate energy buyers, automotive, IoT, telecommunications leaders, and more. More information on Energy Web can be found at www.energyweb.org or follow us on Twitter @EnergyWebX