Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fintech International
Crypto Meets Wall Street as SEC Approves Yield Stablecoin
Stablecoin Regulation | Feb 21, 2025
Image: Freepik/nikitabuida
SEC Greenlights First Interest Paying Stablecoin, Disrupting Banks and Crypto
As reported by Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has approved the first yield-bearing stablecoin YLDS issued by Figure Markets. Per its filing document, this stablecoin is pegged to the U.S. dollar and offers holders an annual percentage yield (APY) of 3.85%.
See: Paxos International Launches Yield-Bearing USDL Stablecoin (Abu Dabi)
This approval shows the SEC's willingness to progress and regulate the stablecoin market and foreshadows the growing integration between traditional finance and blockchain technology, giving users the ability to earn interest on digital holdings without relying on external platforms. This development could significantly impact how people manage and invest their money, affecting banks, crypto lending platforms, and even government legislation.
YLDS Overview
- YLDS generates interest by providing an APY of 3.85%, which is calculated by the Secured Overnight Financing Rate (SOFR) minus 0.50%. Interest accrues daily and is paid monthly in U.S. dollars or additional YLDS tokens. Tradable 24/7 on Figure Markets with fiat conversions available during U.S. banking hours.
- YLDS is registered as a security with the SEC and is compliant with U.S. financial regulations.
- YLDS stablecoin is backed by assets similar to those held in prime money market funds including U.S. Treasury bonds and corporate debt (stable and reliable).
- YLDS runs on the Provenance Blockchain, allowing people to send money directly to each other without middlemen. This makes transactions faster, easier, and ideal for payments or sending money across borders.
How Interest Paying Stablecoins Could Disrupt Finance
- Today, banks rely on customer deposits to fund loans. If people everyday citizens move their savings to yield-bearing stablecoins which offers more competitive interest rates than traditional bank, banks could lose access to these funds, forcing them to raise interest rates or create new products to stay competitive.
- Current stablecoins like popular USDT and USDC don’t generate yields, but YLDS changes that. If investors jump to stablecoins that pay interest, it could force other stablecoin issuers to follow suit or risk losing market share.
See: Hester Peirce’s Crypto Taskforce Roadmap: What’s Next for Regulation?
- Some large financial firms and investment funds have been hesitant to enter crypto due to volatility and regulatory uncertainty. But now with a stable, interest bearing digital asset that is SEC approved, it'll be safer for institutions to participate and may accelerate mainstream adoption.
- DeFi lending platforms like Ledn, Aave, and Compound rely on user deposits to function. If investors can earn passive income from a regulated stablecoins, they may be less likely to use DeFi lending pools which would force lending platforms to innovate or adapt.
- The SEC’s approval of YLDS sets a legal precedent for treating yield paying stablecoins as securities. This could influence how similar digital assets are taxed, regulated, and reported in the U.S. and internationally, resulting in potentially new compliance requirements for investors.
Outlook
As more investors explore secure, yield-generating digital assets, the lines between blockchain and traditional banking will continue to blur. Stablecoins will never be the same again now that the genie is out of the bottle. Whether this sparks more regulation or greater financial freedom remains to be seen.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canadian Fintech Booms with $9.5B Despite Global Slump
Fintech Report | Feb 21, 2025
Despite a Global Fintech Downturn, Canadian Fintech Broke Records with $9.5B USD Investment
KPMG recently published their annual Pulse of Fintech report for H2'24, providing a global analysis of fintech funding (58 page PDF report). Globally, fintech investment in 2024 was $95.6 billion across 4,639 deals, which was the lowest level of funding in the last seven years. The combination of rising interest rates, geopolitical and economic uncertainty caused a significant decline in mergers and acquisitions (M&A) and private equity (PE) investments. Having said that, venture capital (VC) investment was pretty steady, and M&A starting showing signs of recovery by year end. One country however, stood amongst the global crowd. Yes, Canada's fintech sector recorded its strongest funding year ever, reaching a record-breaking $9.5 billion USD in total investment, particularly in private equity and payments technology.
Canada’s 2024 Fintech Surge
Even without these two massive deals, Canada’s fintech sector still posted $2.2 billion in total investment, almost 2X its 2023 total. Venture capital opened their wallets deploying $1.09 billion across 90 deals in 2024, up from $737.8 million across 103 deals in 2023. Worth noting that VC dollars spiked in the second half of the year with $744.9 million across 33 deals, more than double the year prior the amount deployed in H1.
Notable VC deals include Neo Financial ($260 million backed by prominent tech entrepreneurs), Blockstream ($210 million led by Fulgur Ventures), and Koho ($140 million backed by PROPELR Growth, Rockefeller Capital, and BDC) attracted significant funding rounds, underscoring strong investor interest in financial services and blockchain technology. Private equity played a big role in Canada's fintech boom, highlighting a shift towards later stage investments rather than early stage startup funding. See KPMG release on Canadian fintech in 2024
See: How Fintechs Are Tackling Financial Inclusion in Canada
Dubie Cunningham, Partner, Banking and Capital Markets, KPMG in Canada:
"Canada is punching above it’s weight in terms of fintech. From early stage all the way to the exit stage, the pipeline of startups is strong. The key lies in presenting solutions that address significant challenges faced by banks. If you possess a viable business model that demonstrates potential — regardless of current profit margins — there is a wealth of investment opportunities and a clear path to exit."
Slow Year for Global Fintech, But Signs of Recovery
Outside of Canada who bucked the trend, fintech investment declined across all major regions.
See: Tariff Trade War Hits Canada – What’s Happening
- The Americas led with $31 billion but this was still a large drop compared to $43 billion in 2023
- Europe, the Middle East, and Africa recorded $7.3 billion, the lowest since 2017
- Asia-Pacific fintech investment fell to $5.5 billion
Certain sectors remained strong despite the headwinds. Payments continued to dominate fintech investment, attracting $31 billion globally. Regulatory technology (regtech) enjoyed further growth, with $7.4 billion in funding. Digital assets, blockchain and cryptocurrency companies raised $9.1 billion. Investors prioritized strong revenue models with a clear path to profitability, particularly in AI driven financial services and cybersecurity.
Q4 M&A deal values almost doubled from Q3, suggesting that investors may be regaining confidence after a rather cautious 2024, such that 2025 could see an acceleration of acquisitions.
2025 Outlook
Cautiously optimistic. Interest rates have been coming down in major economies potentially unlocking fresh capital. AI financial services, cybersecurity, and digital identity solutions stand to benefit as financial institutions continue to integrate automation and fraud prevention tools into their ecosystem.
See: How AI is Shaping the Future of Financial Services in Canada
For Canada, in addition to automation and digital banking expansion, open banking regulations are moving closer to implementation, so expect new fintech startups to emerge driving another wave of investment.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Top Trends from Forbes’ 2025 Fintech 50 List
Fintech Ranking | Feb 20, 2025
Image: 2025 Forbes Fintech 50 (Illustration by Óscar Raña for Forbes)
What We Can Learn from the Forbes Fintech 50 in 2025
Every year, Forbes publishes their annual ranking of the top Fintech companies. Checkout the Forbes Fintech 50 in 2025, showing fintech companies that continue to grow despite pressure on company valuations and a slowdown in investment in the sector. According to the judges who select and rank the top 50 at Forbes, this year there's been a rise of business-t0-business fintechs, as well as the increasing importance of fraud prevention and financial security companies.
| Category | Total Funding ($M) | # Companies |
| Payments | 4482 | 11 |
| Personal Finance | 3812 | 8 |
| Business to Business Banking | 3794 | 11 |
| Wall Street and Enterprise | 1892 | 9 |
| Insurance | 1742 | 4 |
| Blockchain and Cryptocurrencies | 1670 | 3 |
| Real Estate | 508 | 2 |
| Investing | 265 | 2 |
1. B2B Fintechs Strong Showing
More than half of the companies on the list provide fintech services to other businesses rather than consumers. Categories like Payments and B2B Banking are seeing strong growth as businesses turn to fintechs to automate and improve their operations, reduce costs and streamline regulatory challenges. Fintech goes well beyond innovative consumer digital banking, it's morphing into improving financial systems at scale. Wall Street & Enterprise fintechs are also playing an outsized role in modernizing financial infrastructure at the institutional level.
See: 10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
The chart below illustrates the number of fintech companies in each category, emphasizing the dominance of business-focused fintechs:
Image: Total # of Fintech Companies by Category (Forbes Fintech 50, 2025)
The chart below shows the total funding received by fintech category, showing which categories are bucking the trend despite the downturn.
Total Funding by Fintech Category Forbes Fintech 50, 2025
Payments fintechs still lead the pack with over $4.4 billion in total funding. This aligns with their critical role in powering e-commerce and digital transactions worldwide.
2. Focus on Profitability Amidst a Funding Slump
In the early 2020s, fintech companies focused on rapid growth but times have changed and they are now after profitability and sustained growth. This year, 13 companies on the list reported official profits (up from just eight last year). Investors and businesses alike are prioritizing financial health over unchecked expansion.
See: CIX 2025 Fintech and AI Startup Award Winners
Even though global fintech funding fell from $144 billion in 2021 to $34 billion in 2024, most companies on this year’s Forbes Fintech 50 have shown resilience. Major players like Stripe and Ramp have adapted by pivoting, reducing costs while focusing on efficiency.
3. Fraud Prevention and Security Are More Important Than Ever
As digital transactions increase so do fraud risks. Security based fintechs are gaining traction as businesses need stronger protections against cyber threats and fraud. DataVisor, a company that uses advanced machine learning to detect fraudulent transactions experienced a 67% increase in revenue in 2024, reaching $50 million.
4. Lending Fintechs Comeback
Companies like Arc, Aven, and Imprint have made their way onto this year’s list, showing that the lending market is regaining investor confidence. Nova Credit, for example, previously fell off the list but re-emerged this year with a renewed focus on cash flow underwriting and a fresh approach to risk assessment.
5. One Canadian Contender, Relay
While much can be argued about the methodology of actually being selected for the Forbes Fintech 50 list. To be honest there are several significant Canadian fintechs that should be on the list but aren't for whatever reason, such as Wealthsimple. But Relay made it so something to cheer about.
See: Key Findings from 2025 Advanced Payments and Fintech Survey
They are a Toronto-based digital banking platform for small businesses and provide financial management tools that integrate with accounting software, making it easier for businesses to manage their money. In 2024, they raised $32.2 million in a Series B funding round, strengthening their market position and offerings.
Top Fintech Companies by Category
Here’s a closer look at a couple of standout fintech firms within each category:
Payments
- Stripe – A global online payments leader providing seamless transaction infrastructure for businesses
- DailyPay – Helps employees access earned wages before payday, improving financial flexibility for millions
Business-to-Business (B2B) Banking
- Relay – Canada’s only fintech on the list offering digital banking for small businesses
- Parafin – Uses marketplace data to underwrite loans, achieved 100% revenue growth in 2024
Wall Street & Enterprise
- DataVisor – Specializes in AI powered fraud detection, growing revenues by 67% in the past year
- Alloy – Provides identity verification solutions for financial institutions, automating compliance and security processes
Personal Finance
- True Link – Offers financial services for vulnerable populations including the elderly and those with disabilities
- Chime – A digital bank providing fee-free accounts and early direct deposits
Insurance
- Ethos – Makes life insurance more accessible with a fast, tech-driven application process
- At-Bay – A cyber insurance company that proactively monitors digital risks for clients
Blockchain & Cryptocurrencies
- Figure – Uses blockchain to offer home equity lines of credit and mortgage refinancing
- Fireblocks – Provides secure infrastructure for handling digital assets
Real Estate
- Aven – Introduces innovative financing solutions to make real estate investments more accessible
- Valon – A mortgage service provider making home loan management simpler and more transparent
Why This Matters
The 2025 Forbes Fintech 50 shows the race for scale is now about profitability with payments, security, infrastructure, and B2B services leading the way. For Canada, Relay’s presence on the list is promising but begs the question, why aren’t more Canadian fintechs on the list?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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CCA Report: State of Investment Crowdfunding 2025
Report | Feb 20, 2025
Investment Crowdfunding in 2025 - Trends, Insights, and Market Analysis
Every year, Crowdfund Capital Advisors led by Sherwood Neiss, publish their annual report based on investment crowdfunding data captured and analyzed. Their report represents one of the most comprehensive views of crowdfunding markets in the U.S. and includes deal activity, trends, insights and analysis. This article shares a few highlights. Download the free 209 page PDF report for a full review of the 2025 State of Investment Crowdfunding.
See: State of UK Equity Crowdfunding Entering 2025
Investment or Equity crowdfunding continues to demonstrate that it's a powerful capital raising tool for startups and scale-ups, helping businesses access capital and driving innovation across the country. Over the past decade, it has enabled thousands of companies to raise capital outside traditional financing channels, offering companies choice.
Investment Crowdfunding's Impact Since 2016
As of the end of 2024, investment crowdfunding platforms collectively raised over $2.8 billion since inception, funding 7,894 issuers across 2,234 cities. This movement is not just about raising capital—it has created 437,000+ jobs and injected $9.5 billion annually into local economies. Since the launch of equity crowdfunding in 2016, the numbers clearly demonstrate impact and growth, with more upside to come:
- Issuers: 7,894
- Offerings: 9,376
- Cities across the United States: 2,234
- Funded capital: $2.8 billion+
- Investors: 2.1 million+
- Jobs supported: 437,000+
- Economic Stimulus: $27.1 billion injected into the economy
- Enterprise value: just under $100 billion of potential liquidity.
2024 Changing Investment Landscape
The industry has seen rapid growth, maintaining a compounded annual growth rate (CAGR) of 32.5%. It took five years to reach the first billion dollars in investments but the second billion was raised in just 23 months.
See: Public Market Challenges and Equity Crowdfunding Capital
- Total investment raised was $545.6 million, setting a new record (surpassing the previous high in 2021)
- Average amount raised per campaign was $616,000. A 29.4% increase from 2023, showing that companies are securing more funding per round
- Campaign success rates have declined from 72.7% in 2023 to 63.7% in 2024. This signals increased investor scrutiny, with funding shifting toward companies that demonstrate strong revenue potential.
- More investors are writing bigger checks with average check sizes increasing in 2024, showing a stronger interest in post-revenue businesses that have a proven track record.
- Preference for revenue-generating businesses was 64% of successful campaigns in 2024 were for companies that already had revenue, demonstrating that investors favour more established businesses over early-stage startups
Top Platforms in 2024. Who’s Leading the Market?
Investment crowdfunding markets are still competitive but a few platforms continue to lead in total capital raised (see ranking in table below)
| Rank | Platform | Offerings | Capital Raised | Investors |
|---|---|---|---|---|
| 1 | Wefunder | 276 | $268.5M | 106.4K |
| 2 | StartEngine | 169 | $83.8M | 50.8K |
| 3 | Dealmaker | 56 | $43.2M | 30.2K |
| 4 | Republic | 50 | $25.0M | 21.0K |
| 5 | Honeycomb | 138 | $9.5M | 8.6K |
Three Key Trends
1. Investor Behaviour and Market Shifts
Recently, more capital is flowing into companies with proven revenue models. In 2024, 63% of successfully funded companies were post-revenue. This is a departure from the earlier years when riskier, pre-revenue startups dominated investment crowdfunding markets.
See: How Fintechs Are Unlocking Value in Private Markets 2024
Investors are becoming more selective, resulting in larger check sizes but fewer deals being funded. This trend reflects a maturing market where investor confidence hinges on financial performance and strategic growth opportunities.
2. The Rise of AI and Fintech in Crowdfunding
Technology startups in artificial intelligence, machine learning, and fintech are attracting the highest levels of investor interest. AI firms raised $312 million in 2024 alone with fintech companies following closely behind. This aligns with broader market trends where digital transformation and automation are leading investor priorities. Also, crowdfunding platforms themselves are integrating AI tools to improve decision-making and potentially increase transparency while reducing risk.
3. Policy and Regulatory Changes
Regulation remains a hot topic as policymakers consider raising the Regulation Crowdfunding (RegCF) cap from $5M to $20M. This change could unlock larger capital raises, making equity crowdfunding a more viable option for high-growth companies. Further, discussions around tokenized securities and blockchain integration could introduce new levels of liquidity and investor participation which would further bridge the gap between private and public markets.
Key Takeaways
- Investment crowdfunding is growing fast with more than $2.8 billion raised and 7,894 issuers funded, making it a major force in startup financing.
- Investors are contributing larger amounts but being more selective, focusing on businesses that already generate revenue.
- AI and fintech startups attracted the most funding, with AI companies raising $312 million in 2024.
- Regulatory changes could expand the market, such as increasing the RegCF cap from $5M to $20M and expanding the use of tokenized securities.
- Leading platforms continue to dominate, with Wefunder, StartEngine, and Republic holding strong positions, while Dealmaker is growing in specialized markets.
The Road Ahead
Investment crowdfunding has proven its ability to democratize access to capital, stimulate job creation, and fuel economic growth. With institutional investors showing increased interest and platforms refining their strategies, the next decade will likely see even greater adoption and innovation in the space.
See: Revolut’s Crowdfunding Success from Start-up to $45 Billion
2025 is expected to bring further growth, with the number of deals projected to rise to 1,600-1,700 offerings. Artificial intelligence investment tools and tokenized securities could provide more liquidity for investors.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Yellow Network Ranks Among Top 10 Apps by Total Active Accounts, According to BundleBear
Feb 20, 2025
Yellow Network has once again solidified its position as a key player in the decentralized trading ecosystem, earning a spot among the top 10 applications by total active accounts, as reported by BundleBear. This achievement highlights Yellow’s growing influence in the blockchain space and its commitment to building a cutting-edge Layer-3 peer-to-peer (P2P) trading protocol.
What is Yellow Network?
Yellow Network is a Layer-3 P2P protocol that leverages state channels to facilitate fast, efficient, and secure trading and settlement. It operates as a smart clearing network, allowing brokers to synchronize margins, hedge risks, and enable trustless trading without the need for centralized intermediaries. It provides an innovative infrastructure for high-frequency trading, cross-exchange liquidity, and decentralized order book management.
BundleBear’s Recognition: A Testament to Growth
BundleBear, a widely recognized blockchain analytics platform, tracks various metrics across decentralized applications (dApps) to determine their adoption and user engagement. By ranking among the top 10 applications by total active accounts, Yellow Network showcases its rising popularity and the strong demand for decentralized trading solutions.
See: Bitcoin’s Evolving: The Rise of DeFi on Bitcoin
This milestone underscores the platform’s ability to attract and retain active participants in an industry where user engagement is a key indicator of success. With a constantly growing network of brokers and traders, Yellow is proving to be a crucial element in the evolution of decentralized finance (DeFi).
Why Yellow is Gaining Momentum
- Scalability & Speed – As a Layer-3 solution, Yellow Network enhances transaction speed and efficiency by utilizing state channels, minimizing on-chain congestion and fees.
- Decentralization & Security – By eliminating centralized intermediaries, Yellow empowers users with trustless and secure trading mechanisms.
- Liquidity Optimization – The protocol connects brokers into a decentralized P2P network, enabling efficient liquidity distribution across multiple venues.
- Institutional-Grade Trading Infrastructure – Yellow’s framework allows brokers to manage positions, synchronize prices, and hedge risks without relying on centralized market makers.
What’s Next for Yellow?
With its ranking among the top 10 applications by total active accounts, Yellow Network is poised for further expansion. The platform continues to enhance its protocol, integrate with new partners, and optimize trading efficiency for a seamless user experience. As decentralized trading gains traction, Yellow Network is well-positioned to lead the charge toward a more open and efficient
Join the Yellow community to keep up with the latest developments and be part of the future of P2P finance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Fiverr Launches AI-Powered Fiverr Go, Mixed Reactions
Gig Economy | Feb 19, 2025
Image: Freepik/DC Studio
Fiverr Launches AI-powered "Fiverr Go" to Help Freelancers Scale But Concerns About Job Security Remain
On Feb 18, 2025, Fiverr officially unveiled Fiverr Go, a groundbreaking AI-driven platform designed to help freelances scale their gig businesses while maintaining full control over their creative rights.
The launch comes at a time when AI tools are being criticized for exploiting creative work without providing compensation to the creators/artists or attribution. Fiverr Go is a game-changing model where freelances train AI on their own work, while the AI in turn does the freelancer's job for them while the gig workers set prices for their AI produced content/work while still retailing full ownership of their AI models. This is Fiverr's solution to helping gig economy workers to use AI rather than be displaced by it (or compete with it).
AI Meets Freelancing
Fiverr Go has two main set of AI tools for freelancers now:
- Personal AI Creation Model – Costs $25/month. Freelancers train AI models using their previous work which ensures related AI output aligns with the creator's unique style. The thinking is that instead of being replaced by generic AI outputs, gig workers can now monetize AI versions of their own services while keeping control over their creative assets. This approach prioritizes creator rights and compensation, while is vastly different than how many AI platforms currently operate.
See: Fiserv Acquires Payfare to Boost Gig Economy Solutions
- Personal AI Assistant – Comes with the Seller Plus Premium tier for $29 a month. This AI tool is designed to handle routine tasks like analyzing client interactions and providing business insights. The assistant can respond to customers quickly (even when you're offline), which can boost sales conversions, as many gigs are lost when asleep. The assistant chatbot is meant to help freelancers increase their efficiency.
Freelancer Equity Program
As part of the AI rollout, Fiverr has also announced an industry first 'Freelancer Equity Program' where top performing freelancers can receive equity shares in Fiverr. The program aims to give the top workers a financial stake in the platform's future, which are central to the company's success. Note while details on how gig workers can qualify for the equity program are still pending, it's a signal of Fiverr's commitment to its worker community during unprecedented changes to the sector, at the hands of AI.
See: When Tech and Humanity Clash: AI Dilemma at SXSW
Micha Kaufman, CEO/Founder of Fiverr:
"This isn't just another AI platform—it's a fundamental reimagining of how AI and human creativity can work together. Instead of letting creators be exploited, Fiverr Go ensures they receive proper credit and compensation while giving them unprecedented tools to scale their work."
Strong Financial Results Q4
According to PYMTS article and Fiverr shareholder Q4 update, Fiverr reported strong financial results in Q4 2024 with a 13.3% increase in revenue year over year $103.7 million. Service revenue also increased by 102%, driven by growing demand for subscription-based services.
However it wasn't all rosy with the platform experiencing a drop in active buyers (from 4 to 3.6 million). Although average spend per buyer increased 9% to $302 per.
See: The Rise and Implications of a New AI Software Workforce
Perhaps most notably is that Fiverr's stock value fell 7% after the earnings announcement, likely reflecting investor concerns about the profitability and potential of it's AI expansion model.
Freelancers Excitement Amidst Skepticism, and Uncertainty
Gig worker reactions to the launch have been mixed. While some see AI as an opportunity to scale their business, others worry that it will simply lead to job displacement in the future. Two quotes from the fiverr community highlight some concerns:
Will clients pay the same rates for AI assisted work?
Some clients are wrongly accusing freelancers of using AI even though their work is 100% human created.
"While AI can help speed up workflows and productivity... for the freelancing world specifically, AI is doing more harm than good."
"Life was so much easier as a writer on Fiverr before AI became a thing. Now I get clients who... falsely accuse me of using AI because they think my writing 'sounds like AI.'"
Conclusion
The launch of Fiverr Go signals that I isn't coming for the gig economy -- it's already here.
See: How the Global Remote Workforce is Changing the Model Work Mindset
Time will tell if the result will be as Fiverr insists: AI tools will not replace freelancers but it will enhance their work, but the concerns about AI impacted job losses, pricing pressures and ethical challenges are all still unresolved. Details of how Fiverr's equity program actual works may be the kicker whether or not freelancers embrace the change or push back against it.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Milei Faces Political Crisis After $LIBRA Crypto Collapse
Crypto | Feb 18, 2025
Image: Freepik/natanaelginting
Political Turmoil as Argentina's Presidents Endorsement Leads to Investor Losses, Lawsuits, and Impeachment Calls
As widely reported, Argentina’s President Javier Milei is facing a political crisis after promoting a cryptocurrency called LIBRA, which rocketed in value before suddenly collapsing nearly 97% within hours, however insiders cashed out millions ahead of the collapse, resembling a classic 'rug pull' scam. The fallout has led to financial losses for thousands of investors, triggering lawsuits, political backlash, and calls for Milei’s impeachment.
Milei's administration claims he was unaware of the project’s details but opposition leaders argue that his promotion directly fuelled speculation and losses. With over 100 legal complaints filed at Argentina’s Supreme Court and lawmakers demanding Milei answer questions before Congress, the crisis is deepening.
How the LIBRA Scandal Unfolded
On February 14, 2025, Milei tweeted to his 3.8 million followers, promoting LIBRA as a private initiative to fund small businesses. His endorsement triggered a viral price surge that pushed the token’s market cap to $4.56 billion within minutes.
Behind the scenes however, eight wallets linked to the LIBRA team quietly withdrew $107 million in liquidity, and automated trading bots linked to insiders also bought the token at $0.38 and sold at peak prices generating millions in minutes. Everything signalled that this was an orchestrated exit. Panic spread and LIBRA plummeted from $4.97 to $0.19 within hours, wiping out 74% of investor funds.
See: Crypto scams, DeFi hacks, and rug pulls: Why the crypto industry needs insurtech
Milei deleted his post at 10:38 PM, claiming he had “obviously no connection” to the project and was not familiar with its details. However, critics noted that he had met with the project’s backers just weeks before the launch. By midnight Feb 15 the crash was complete.
Legal and Political Fallout
After the collapse more than 100 legal complaints were filed at Argentina’s Supreme Court accusing Milei of participating in a fraudulent scheme. Opposition lawmakers estimate 40,000 investors suffered financial losses with some losing up to $100,000. The scandal even rocked Argentina's stock arket with the Merval index dropping 5.6% on February 17. Calls for Milei's impeachment grew louder with former President Cristina Kirchner branding him a "crypto fraudster".
Who Else Was Involved in LIBRA?
Two companies were behind LIBRA which were largely unknown in the crypto sector before launching the project.
- Julian Peh, KIP Protocol positioned his firm as a blockchain initiative but had no previous ties to crypto investments
- Hayden Mark Davis, Kelsier Ventures later blamed Milei for withdrawing support saying his endorsement was promised to continue
What Happens Next?
Milei has ordered an internal investigation but critics argue that it's a political maneuver to deflect responsibility. Argentina’s Supreme Court is investigating whether Milei was involved in the scam or simply made a mistake. If found guilty, he could be impeached or face criminal charges, which could further weaken Argentina’s already unstable economy.
Aside Update: Decrypt reports that Binance founder Changpeng Zhao (CZ) has since donated 150 BNB (about $60,000 USD) to help people who lost money in the $LIBRA scam. While the donation offers some relief, it still only represents a small part of the total losses.
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