AI is everywhere, finding applications in unexpected places. It also sparks conflicting arguments about how it should be applied and what safety implications follow.

Take this thoughtful post I found on LinkedIn, penned by Heman Gorgi. He reflects on how Elon Musk has justified using a single sensor type by claiming sensor fusion poses safety risks. To me, that position feels self-serving given Tesla’s decision to drop additional sensors in favour of camera-only solutions.

Gorgi contrasts this by explaining how other operators are deploying multi-modal sensor suites and tailoring them to specific environments. It’s worth a read.

Why fusion matters

Different sensors bring different strengths. Cameras capture detail, but they are essentially 2D. LiDAR, radar, and IMUs add depth, velocity, and geometry. Together, they create a fuller picture of the world.

Ignoring this is not just a technical choice. It has real-world consequences. A recent lawsuit shows how dismissing sensor fusion can damage a company’s share price and erode public trust. Even Tesla’s own engineers have highlighted flaws in relying on cameras alone, as seen in this WSJ video at the 6m15s mark.

Disagreements between sensors should not be viewed as liabilities. They are often early-warning systems. When one modality is wrong and another is right, that is resilience. AI can arbitrate those disagreements, correct sensors, or initiate safety measures to bring the system to a graceful stop.

Also Read: The AI-first era: Why the model is the new runtime and how Asia can lead

A short history of the debate

This argument is not new. In the early days of autonomous driving, Waymo championed LiDAR as essential. Tesla pushed for a camera-first approach. Mobileye staked a middle ground, building perception models and sensors that could adapt to both.

The divergence reflected two philosophies: design for cost and scalability, or design for safety and redundancy. Back then, LiDAR units cost around $30,000, about the price of an entire car, so resistance from manufacturers was understandable. Prices have since fallen (and continue to fall), however entry-level LiDARs still remain more expensive than cameras.

Musk’s argument is that multiple perception models built from different sensors can lead to conflicting “realities” for hazard perception and object detection. This (in my opinion) is why sensor fusion matters. It creates a single, coherent view of the world, effectively an AI enabled virtual super-sensor. This is also where AI at the edge shows its value. Fusing and calibrating data in real time reduces hardware complexity and simplifies decision-making for higher-level AI modules.

AI at the edge in practice

At my own company, Curium, we utilised AI at the edge not to create flashy features but to enable real-time sensor fusion and calibration.

This capability could in the future help companies like Aurora, Kodiak Robotics, Zoox, Waymo etc to keep their fleets of vehicles safely on the road even when their sensors are affected by debris, vibration, or heat throughout a typical day. When a sensor drifts, our AI algorithms detect the issue and bring it back into safe operating parameters instantly.

This is the hidden side of AI. It is not about chatbots or voice assistants. It is the routine work of checking cameras, LiDAR, radar, and IMUs frame after frame. It ensures that what is in view is where it should be and corrects when it is not. This is the deepest kind of deep tech. It does not make for flashy videos on YouTube. It rarely registers in public perception, but it does create the clean data environment that all other systems depend on.

Also Read: AI in Southeast Asia: The silent force powering today and the engine for tomorrow’s growth

Beyond autonomous vehicles

The power of AI at the edge extends well beyond cars and trucks.

• Smart cities: Crowd analytics systems use edge AI to track flows of people in real time. Instead of sending every frame to the cloud, AI interprets the scene locally. This preserves privacy while still enabling insights like congestion alerts or evacuation planning.
• Healthcare: Portable imaging devices and bedside monitors now embed AI directly on the device. Critical alerts, such as a patient’s oxygen level dropping or a fall being detected, are raised immediately without waiting for cloud connectivity.
• Manufacturing: Edge AI keeps factories running safely. By fusing data from vibration sensors, cameras, and temperature gauges, it can detect when a machine drifts out of alignment and trigger corrections before defective products are produced or systems fail.

In all these domains, the theme is consistent. Edge AI adds resilience. It checks that things are where they should be, validates that signals make sense, and makes the adjustments needed when they do not.

Raising the benchmarks

The benchmark is clear. Autonomous vehicles must be safer than the average human driver. Not perfect, but measurably better. The same standard applies in other industries. AI at the edge needs to consistently outperform what humans alone can achieve.  We also know that public expectations are a little unforgiving.  Should one Autonomous Vehicle get into an accident and it’s a major splash across all the media outlets, denting public perception on the safety and reliability of such systems.

The power of complementary senses

In automotive use cases, cameras, radar, and LiDAR working together provide scale and robustness. The result is resilient systems that can operate in real-world conditions.

In safety-critical applications, the question is not which sensor “wins.” The measure is how well the vehicle orchestrates all sensors. Success comes from leveraging redundancy and complementary sensors to meet the benchmark of safety.

The hidden value of AI

This, to me, is the real story of AI at the edge. It is not the big, flashy demos that make headlines. It is the quiet, practical work of keeping things safe, resilient, and reliable.

AI at the edge does not need to talk back like a large language model. It does not need to generate images or text. It needs to sustain the heavy lifting that humans can’t maintain, that of: Constant calibration. Continuous anomaly detection. Intervention before failure.

This is the kind of AI that scales silently in the background. It builds trust. It enables services that touch millions of people without them ever noticing.

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Just three to four years ago, startup success in Southeast Asia was synonymous with aggressive expansion, sky-high burn rates, and a singular obsession with scale. ‘Growth at any cost’ was the prevailing mantra—fuelled by abundant capital, wide-open markets, and investor appetite for hypergrowth over sustainability.

Driven by FOMO, both foreign and domestic investors poured funds into startups, pushing valuations to unsustainable heights and giving rise to a wave of regional unicorns.

Then came COVID-19, which brought the global economy—and the startup boom—crashing to a halt. Hospitality and tourism, two of the most affected sectors, saw widespread closures and pivots. Startups were forced to reckon with reality, and the once-celebrated blitzscaling playbook lost its edge.

By the time recovery was underway, investor sentiment had fundamentally shifted. The days of funding loss-making ventures purely on potential were over. In this new landscape, profitability—and a clear path to it—became the litmus test for investment. Reckless capital deployment gave way to strategic restraint.

At RedDoorz, we were not immune to the shockwaves. But through grit, focus, and a willingness to adapt, we weathered the storm—and emerged stronger. In 2024, after years of sustained effort, we achieved our first year of positive adjusted earnings. This wasn’t luck. It was the result of deliberate choices and a mindset shift from chasing scale to building staying power.

Profit vs purpose: Can Southeast Asia’s startups strike a balance?

Startups have always been powered by vision: disrupting the status quo, empowering users, and bridging gaps in access and convenience. That sense of purpose is still critical—but in today’s environment, it must be anchored by financial discipline.

As interest rates surged and investor caution rose, the ‘growth at all costs’ philosophy lost its shine. For many founders, this meant going back to basics—focusing on core markets, doubling down on what worked, and shedding what didn’t.

At RedDoorz, we made bold yet necessary decisions to sharpen our focus. We doubled down on the high-potential, underserved markets of Indonesia and the Philippines—together accounting for 95 per cent of our revenue in 2023. At the same time, we exited slower-growth markets like Singapore and Vietnam, and divested KoolKost, our long-stay accommodation arm, selling it to Malaysia-based LiveIn earlier this year.

Also Read: 5 common mistakes startups make when building their brand identity (and how to fix them)

These were not easy choices, but they were purposeful. And they allowed us to simplify, concentrate our resources, and cross the critical threshold into profitability.

Choosing depth over breadth

In hospitality, a crowded and competitive sector, our edge lies in how deeply embedded we are in our core markets. Since 2015 in Indonesia and 2018 in the Philippines, we’ve built meaningful relationships with local hotel partners, strengthened our brand presence, and delivered real value through technology and customer loyalty.

Even with a tighter geographical footprint, we grew revenue by 14 per cent in 2024—nearly 20 per cent in local currency in our core markets alone. For 2025, we’re aiming for 30–40 per cent growth, with a revenue target of US$36M million.

We’re also evolving with our customers. Many of those who first stayed with us early in their careers now seek more premium experiences. We’re growing with them through our lifestyle brand Sans and villa offering Lavana.

The automation advantage

Over the past few years, we’ve invested heavily in automating repetitive processes. Tasks like customer support and room allocation are already handled without human input. We’re now expanding automation to include check-ins, checkouts, and payments.

This isn’t about replacing people—it’s about future-proofing our operations. In a low-margin industry like hospitality, automation isn’t just a nice-to-have; it’s a strategic imperative. It enables us to scale efficiently, improve margins, and deliver consistent quality at every touchpoint.

Also Read: 3 stages of marketing for your startup that can drive effective results

IPO? We’re playing the long game

We’ve been exploring a potential IPO since 2019, and while it remains on the table, we’re not in a rush. Our priority is building a profitable, resilient business that can thrive in any market cycle.

That said, we remain open to M&A opportunities—whether to re-enter past markets or expand into new ones. We’re also closely monitoring other regional IPOs. With several larger players ahead in the queue, patience and timing will be key.

The new era of Southeast Asia’s startup ecosystem

Southeast Asia is at a turning point. The region’s startup ecosystem is maturing, and with that maturity comes a new set of expectations: discipline, clarity, and a genuine path to profitability.

At RedDoorz, our evolution from breakneck growth to sustainable scale mirrors the broader transformation underway. We’ve learned that success doesn’t lie in chasing every opportunity—it lies in making the right choices, executing with precision, and staying focused on long-term value.

There’s no one-size-fits-all formula for building a great company in Southeast Asia. But one principle is clear: smart growth is sustainable growth. As the dust settles and a new era begins, the startups that can harmonise purpose with profit—and balance short-term agility with long-term vision—will not only endure but define the region’s next chapter of innovation.

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A new report from Velocity Ventures, titled Innovation & Deal Flow Report 1Q2025 [Travel Services], paints a vibrant picture of the global travel services industry, particularly emphasising the opportunities and trends relevant to Southeast Asia.

According to the report, the current travel services market displays “extremely optimistic growth potential”. Notably, data protection, space travel, and social commerce are key growth areas.

This optimism is further underscored by the top three highest compound annual growth rate (CAGR) areas: data security & privacy (35.5 per cent), space tourism (31.6 per cent), and social commerce (31.7 per cent).

Also Read: Future-proofing hotels to stay ahead of the curve

Interestingly, the report highlights a growing emphasis on safety technologies for travellers, coupled with a consumer preference for data protection. This confluence suggests that travellers are increasingly mindful of their well-being and personal information when venturing abroad, presenting a potential avenue for innovative solutions in the Southeast Asian tech landscape. The report notes, “travellers are becoming increasingly cautious of their own safety when travelling, and this can be an opportunity to capitalise on”.

Furthermore, the sustained popularity of solo travelling is triggering a new wave of travel services tailored to this demographic, including specialised accommodations, connection platforms, and forums. This trend could have significant implications for startups in Southeast Asia, a region known for its diverse solo travel destinations.

However, not all areas are experiencing the same upward trajectory. The report pinpoints the top three decreases in CAGR as artificial intelligence (-18.1 per cent), influencer marketing (-13.6 per cent), and voice-based digital assistance (-2.5 per cent). While AI is still prevalent in travel tech, this decrease in CAGR might suggest a shift in its application or a recalibration of its immediate growth expectations.

The Velocity Ventures report observes a “growing emergence of personalisation and engagement in the travel industry, with consumers seeking tailored experiences.” The report also emphasises that “automation is becoming essential for driving efficiency, scalability and cost reduction”, themes that resonate strongly within the tech startup ecosystem of Southeast Asia.

The report also highlights several companies, including TravelPerk, a Spanish business travel management platform that raised US$200 million in a Series E round in January 2025 with notable investors like Atomico and EQT. Another highlighted company is Paytrack, a Brazilian software developer automating travel and expense management, which secured US$42 million in a Series B funding round in the same month with Riverwood Capital participating. While these companies are not based in Southeast Asia, their significant funding rounds indicate the continued investor appetite in the broader travel tech space.

Also Read: Navigating the relationship between ChatGPT and the travel industry

In terms of recent global VC activity, the report mentions K2 Space, a US-based developer of satellite buses, which raised US$110 million in February 2025. Another US company, Doifoo, developing an AI-powered travel ID, raised a pre-seed round in March 2025.

Interestingly, the report also details activity closer to home for Southeast Asian observers. A Malaysian startup developing VR sales videos for hotels secured US$1 million in a pre-seed round in February 2025, valuing the company at US$22 million pre-money.

Additionally, a Singaporean company offering real-time, self-updating digital twins for mapping systems raised US$2.5 million in a seed round in March 2025, with a pre-money valuation of US$30 million.

These deals underscore the burgeoning innovation within the region’s travel tech sector.

Velocity Ventures also highlights two proprietary deals in their pipeline: Project S25 and Project S26.

Project S25 focuses on AI-powered personalised audio tours, offering a scalable alternative to traditional guided tours. The company claims to have achieved significant cost and efficiency gains by eliminating supplier royalties and is currently fundraising US$1.5 million at a US$12.5 million pre-money valuation. The strategic rationale includes its unique AI-powered personalisation, strategic distribution partnerships, and ongoing innovation through user feedback.

Project S26 centres around spatial twin technology, providing real-time, self-updating digital mapping solutions. This platform aims to enhance operational efficiency by allowing organisations to manage their own maps and unlock new revenue streams through spatial advertising. It has diverse applications, including aviation and the MICE industries, and has even “Executed proof of concept and secured tender with Changi Airport”. The company is fundraising US$2.5 million with a US$30 million cap.

In conclusion, Velocity Ventures’ Innovation & Deal Flow Report 1Q2025 [Travel Services] offers a compelling snapshot of a dynamic, fast-evolving global travel services sector—with Southeast Asia emerging as a region ripe for disruption. With strong investor appetite, rising demand for data security, personalised experiences, and the advent of frontier technologies like spatial twins and AI-powered tours, the region’s startups are well-positioned to ride this wave of innovation.

While certain technologies, such as AI and influencer marketing, are seeing a recalibration in growth expectations, the overall outlook remains decidedly upbeat. For investors, entrepreneurs, and stakeholders in the Southeast Asian travel tech space, the message is clear: the next frontier of travel innovation is already taking shape—and the region is poised to play a leading role.

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There’s been a flurry of news lately pointing to potentially better days ahead for hotels in Singapore. Allowing non-fully vaccinated travellers entering the city-state to skip quarantine, reopening Changi Airport’s Terminal 4 after two years of hibernation, and starting work on a fifth air terminal that will not only be one of the largest of its kind in the world but also one that’s pandemic-proof, are among the things that ought to keep hotels busy for some time to come.

Hotels are already back on their feet, with visitor arrivals to Singapore rising as borders reopen. Occupancies and room rates are at pre-COVID-19 levels, and the momentum is likely to be sustained as the country expects to receive four to 6 million visitors in 2022, compared to about 2.2 million so far this year.

Still, the heart-wrenching experience of the last two years and longer-term issues such as climate change should serve to remind hotels that they need to better align themselves with the times and even change how certain things are done to raise their game.

Doing even more with less, given the perennial shortage of workers, navigating disruptions to global supply chains, and staying up to speed with sustainability developments and practices, are a few themes hotels have to get a handle on even as business is recovering.

Doing more with less

Avoiding unnecessary physical contact has been ingrained in most people’s minds during the pandemic. Contactless payment systems, pre-arrival online surveys and virtual concierges are a few tools already in place in many hotels even before the onset of COVID-19. But there’s still room for contact-free applications for other routine tasks.

Also Read: How a hospitality career helped me jump into tech

Self-check-in, for instance, is still not common practice in Singapore. One reason for this has to do with security, as hotels want to make sure they don’t end up housing unwanted guests. But with technologies enabling secure and seamless self-check-in already available, guests should be able to do without face-to-face interactions and queues at the front desk.

Checking in can be done even before arrival as a guest can simply punch in the relevant information using a smartphone with an app or portal linked to the hotel. Hotels can take this further by issuing digital keys for rooms instead of physical ones. This would enable guests to simply head straight to their rooms upon arrival.

Besides convenience for guests, self-check-ins can help hotels save on manpower costs. Human resources will also be optimised with workers being freed up to take on more productive and interesting roles, which hopefully will help with staff retention. These are outcomes that any accommodation provider will welcome in today’s tight and increasingly expensive labour market.

Using robots for run-of-the-mill tasks such as baggage handling and food delivery can be another option. The economics must, of course, make sense as the initial outlay for these machines can be substantial, depending on the hotel’s requirements.

Supply chains and sustainability

More than two years into the pandemic, and with the Russia-Ukraine conflict still raging, disruptions to supply chains and the resultant surge in food costs continue to be felt worldwide. Food security, among other things, has become a foremost concern for many countries.

To reduce reliance on imports, Singapore seeks to have 30 per cent of its nutritional requirements met by 2030 through locally and sustainably produced foods. Many companies are rising to the challenge by developing new food solutions, including alternative proteins.

These mainly plant-based alternatives are becoming popular among consumers who are mindful of the environmental challenges linked to traditional meat farming and production. On their part, hotels can consider featuring more alternative proteins on their menus to support food sustainability.

Also Read: The data revolution: Innovation and evolution in APAC’s hospitality industry

With climate change becoming an increasing threat, mitigating emissions and reducing wastage should also be priorities for hotels. Equipping rooms with smart thermostats that automatically adjust the temperature to a pre-set, environmentally-friendly level when no one is around is one such hack.

It’s also time for hotels to ditch or reduce the use of bottled water. Making water dispensers readily available and giving every guest a glass bottle for refills will go some way in reducing plastic usage.

Even blockchain has been touted to be of help to hotels. Blockchain advocates argue that the technology enables, for example, the monitoring of wines from the time of production in a winery to the time distributors get hold of the final product and deliver the bottles to the hotel.

With every transaction recorded and available for viewing on the blockchain, they claim that counterfeiting of expensive wines can be avoided. At the same time, any delays in production or shipment can be grounds for the hotel to source alternative supplies. Promising as it sounds, blockchain adoption is still in its infancy in the hospitality industry.

Hotels in Singapore should leave no stone unturned in seeking to up their game in today’s increasingly challenging operating environment. Some ideas may seem radical or conceptual, but it’s never too late to start future-proofing against present and future threats.

Even if the initial outlay in some cases may not be small, that may be a price hotels must pay to give guests what they want and get them to keep coming back.

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AI is no longer just a buzzword for global tech giants. It is already part of the daily work of small and medium enterprises (SMEs) across Southeast Asia. Rising costs, lean teams and demanding customers are pushing businesses to rethink how they operate, and AI is quickly becoming part of the solution. The real question is how SMEs can use it in ways that create long-term benefits.

AI brings plenty of opportunity, but it also exposes gaps in skills, governance and trust. The best way to see this mix of progress and challenges is through the day-to-day stories of SMEs in the region.

The everyday frontlines: Orders, customers, and cash flow

Take a bubble tea shop in Singapore for example. The staff used to spend hours each week chasing suppliers over WhatsApp and checking invoices by hand. It was stressful, and mistakes slipped through. After bringing in an AI agent, purchase orders and invoices were matched automatically. Errors dropped, and the team had more time to serve customers during peak hours.

Another jewellery store is also using AI to ease the load. With just one person handling marketing, keeping up with Instagram and TikTok quickly became too much. An AI assistant now drafts captions, analyses engagement and suggests posting times. The founder jokes that it feels like having “a junior marketer who never sleeps,” though they still step in to keep the brand authentic.

These are not far-off case studies. They are real examples of how AI is already changing day-to-day work for SMEs in the region.

Why Southeast Asia’s context is different

SMEs make up 97 per cent of all businesses and employ about 67 per cent of the workforce in Southeast Asia. But adoption still lags behind larger companies. According to the Infocomm Media Development Authority’s Singapore Digital Economy Report 2024, only 4.2 per cent of SMEs had adopted AI in 2023, compared with 44 per cent of large companies.

Many SMEs work with tight budgets, lean teams and patchy infrastructure. That is why they often turn to low-code tools, external platforms and trusted partners instead of building everything in-house. Surveys show that more than three-quarters of SMEs in APAC are already using AI-enabled digital tools, although overall adoption remains modest in markets like Singapore.

Support schemes such as Singapore’s SkillsFuture Mentorship Support Grant and Malaysia’s SME digitalisation initiatives are important, but the real challenge is making sure they lead to lasting change rather than short-term pilots.

Also Read: AI for everyone: 25 tools to automate, create, and innovate

The next frontier: Agentic AI for SMEs

Most SMEs begin with simple, task-based AI such as automating invoices, drafting marketing copy or keeping an eye on dashboards. The next step is agentic AI, systems that can break down tasks, adapt as new information comes in and keep processes moving without constant supervision.

Think about a point-of-sale (POS) system that flags when stock is running low. Instead of stopping there, the AI places an order with the supplier, arranges delivery, updates loyalty offers to help move inventory and sends a report to the manager. Each action is connected, with the system adjusting in real time. That is the shift from AI as a helper to AI as a true partner in the business.

A case study in collaboration

One way AI adoption in Southeast Asia is taking shape is through partnerships. In Singapore, companies such as Morpheus Labs have worked with partners like Craveva, each contributing different capabilities. The chart illustrates how these pieces connect. Point-of-sale systems, CRM and loyalty platforms, supplier ordering tools and workflow technology are integrated so they operate together rather than in silos.

Here’s what that looks like in practice. A low-stock alert at the POS can trigger a supplier order, update loyalty points and generate a report for the manager without extra back-and-forth. What used to be separate tasks now flow as a single process, with AI keeping everything in sync.

For SMEs, that means less manual checking and fewer mistakes, along with more time for small teams to spend with their customers. At the ecosystem level, it highlights how local firms are experimenting with connections across different technologies to bring AI into everyday operations.

Also Read: Transparency, accuracy and validation key to building Singapore consumers’ trust in AI agents: Report

Guardrails still matter

When AI gets more autonomy, the responsibility goes up too. Agentic AI needs access to sensitive sales and customer data, which makes privacy, fairness and accountability even more important. For SMEs without compliance teams, these risks are not abstract, they are real. That is why adoption has to come with safeguards, training and clear lines of responsibility. Efficiency gains should never come at the expense of trust.

From experiments to everyday use

The next step for SMEs is not adopting AI for novelty but embedding it into workflows that scale. 

In APAC, three shifts are already visible:

• AI for efficiency and margins

Companies in APAC are beginning to use AI to strengthen demand forecasting and capacity planning. Kearney notes that AI-driven forecasting can reduce waste, optimise inventory, and support healthier margins. For SMEs in retail and F&B, these gains are especially relevant, since tighter operations directly improve profitability.

• AI for language inclusivity

Language diversity is a constant challenge across APAC. New initiatives such as AI Singapore’s SEA-LION models, trained in languages like Bahasa Indonesia, Thai and Vietnamese, are making AI tools more relevant and accessible to the region’s businesses.

• AI as a growth multiplier

For SMEs in APAC, AI is not just about cutting costs. A Deloitte–Meta study found that more than 75 per cent of SMEs in six APAC markets are already using AI-enabled digital tools. Among them, 80 per cent reported lower costs, and 73 per cent said AI helps them compete with larger firms, opening up new opportunities for growth.

Also Read: Navigating fundraising: Recognising objections vs rejections

A call to the ecosystem

It is easy to see the lesson from Southeast Asia. SMEs cannot make this journey alone. They need support from governments, investors and technology providers, whether that is mentorship, safeguards or simply a community to learn from.

The future of AI in the region will not come only from billion-dollar companies. It will also come from the bubble tea shop that automates supplier orders, the retailer that finds new ways to talk to customers and the family business that goes online to reach more buyers. What they do today will set the example for responsible adoption tomorrow.

The road forward

AI is already part of how many SMEs in Southeast Asia work day to day. The real challenge now is helping them move from small, scattered experiments to adoption that is more strategic and long term.

If that happens, the story of AI in our region will not just be about technology. It will also be about resilience, inclusion and growth for the millions of people who rely on SMEs every day.

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AI assistants like ChatGPT have quickly become part of a developer’s daily toolkit. Need to clean up a function? Ask AI. Want to check why that query isn’t running? Ask AI. It feels fast, easy, and harmless.

But what if the code they paste belongs to your company?

That simple act of copying and pasting could raise big questions about privacy, security, and intellectual property. Let’s break it down in a straightforward way.

Where does the code go?

When a developer pastes code into ChatGPT, the data is sent to the AI provider’s servers to generate a response. By default, this means the code leaves the safe walls of your company’s systems and enters a third-party environment.

While many AI tools have strict privacy policies, you can’t always be sure how data will be stored, processed, or used for model training. That’s why organisations need to think carefully about what information is shared.

The risks of pasting code

Pasting code may feel like asking a colleague for help, but in reality, it carries risks:

• Intellectual property exposure: Proprietary algorithms, workflows, or trade secrets could unintentionally leave your company’s control.
• Compliance issues: If your business operates under strict regulations (such as GDPR), pasting code with sensitive data could cause breaches.
• Security leaks: Code often contains hidden keys, tokens, or configurations. Sharing them publicly, even by mistake, creates a risk of misuse.

Why developers do it anyway

From the developer’s perspective, it feels practical. AI can:

• Suggest cleaner, faster code.
• Explain bugs in plain language.
• Speed up learning of new frameworks.

In a fast-moving project, AI feels like an instant productivity boost. The challenge is balancing speed with security.

Also Read: Preparing your cybersecurity strategy for 2025: Adapting to the rise of AI

Safer ways to use AI with code

The good news is that you don’t have to ban AI completely. With the right approach, developers can enjoy AI assistance without putting company assets at risk:

• Use enterprise AI plans: Many providers offer business-grade versions with stricter data handling and no training on your inputs.
• Mask sensitive details: Remove tokens, credentials, or unique business logic before pasting.
• Adopt internal AI tools: Some companies deploy self-hosted or private AI assistants so code never leaves the organisation.
• Create clear policies: Make sure your developers know what’s acceptable to share and what isn’t.

Final thoughts

AI is here to stay in software development, but like any tool, it comes with responsibility.

If a developer pastes company code into ChatGPT, it might speed up debugging, but it could also expose valuable data. The safest path forward isn’t to stop using AI, but to guide how it’s used. Clear policies, the right tools, and awareness across teams will ensure your business gets the best of AI without the hidden risks.

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For early-stage climate x health ventures in Asia, the most significant obstacle is often not a shortage of ideas, but a severe ‘missing-middle’ financing gap.

This gap refers to the critical ticket-size vacuum between small philanthropic grants, which rarely exceed US$500,000, and standard Series A rounds, which usually start at US$5 million. Few specialised funds exist to provide the US$1 million to US$3 million bridge financing needed to transition promising solutions from the pilot stage to scalable readiness.

Also Read: Asia’s climate-health crisis deepens amid massive funding gaps

According to the ‘Unlocking Capital For Climate x Health: The Investment Landscape in Asia’ report by AVPN and Prudence Foundation, this gap is amplified by the unique complexities climate x health startups face. Unlike mainstream tech ventures, solutions operating at this nexus often deal with slow public-system readiness, unclear monetisation pathways, and policy ambiguity, making traditional VC returns harder to benchmark.

Catalytic capital as a de-risking agent

The solution strategically uses catalytic capital, which means flexible, early-stage funding that includes recoverable grants, first-loss equity, and milestone-tied capital. When deployed strategically, this capital is essential for derisking early innovation and signalling credibility, triggering a ‘crowd-in’ effect from commercial investors.

Catalytic capital’s functions extend beyond simple financing. It is crucial for:

• Building enabling infrastructure: Establishing accelerators, open data platforms, and technical assistance facilities.
• Navigating regulatory hurdles: Offering regulatory navigation, institutional matchmaking, and policy alignment to move solutions from experimentation to procurement.
• Structured pathways to scale: Providing the necessary support for business model validation, unit economics testing, evidence generation, and procurement readiness.

Flexible financial instruments gain traction

Investors are increasingly turning to flexible instruments to better align capital expectations with the realities of climate x health ventures, which often operate with hybrid revenue models and unpredictable scale curves.

• Milestone-based equity: Equity is disbursed in tranches tied to clear milestones, such as policy integration, revenue targets, or post-pilot uptake. This offers investor protection while enabling early derisking.
• Revenue-linked capital: This structure allows investors to recover capital as a fixed revenue share instead of demanding immediate equity dilution. This is ideal for ventures with slower growth or service-heavy delivery models, such as decentralised cooling or diagnostic logistics.
• Venture debt and private credit: For asset-heavy but cash-generating models, such as modular health clinics or cold-chain infrastructure, short-tenor, low-collateral debt is more appropriate than equity.

The role of multilateral development banks (MDBs) and development financial institutions (DFIs) is critical here. Their contributions focus on derisking mechanisms and the development of investment-ready ecosystems.

The Asian Development Bank’s (ADB) Innovative Finance Facility for Climate in Asia and the Pacific (IFCAP), for example, attracts private capital by lowering risk, thereby enabling investment in health-linked adaptation solutions like resilient infrastructure and cooling technologies.

Also Read: Climate tech’s shift from doing good to doing well

Furthermore, the World Bank requires that at least 35 per cent of its lending be climate-aligned, and nearly 60 per cent of its US$30 billion health portfolio now supports adaptation efforts.

By embracing these flexible structures and coordinated capital stacks, investors can effectively bridge the pilot-to-scale divide, turning high-impact, early-stage models into commercially viable opportunities.

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The SAFE STEPS D-Tech (Disaster Tech) initiative is a regional programme by Prudence Foundation that supports the development and deployment of innovative technology solutions to improve disaster preparedness, response, and resilience. Through the annual SAFE STEPS D-Tech Awards and Community Hub, the initiative brings together startups, NGOs, governments, investors, and humanitarian actors to co-create impactful solutions that save lives before, during, and after disaster events. By catalysing partnerships and enabling scale, D-Tech serves as a platform to turn promising ideas into real-world systems that strengthen communities across Asia and beyond.

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Small farmers in Southeast Asia face persistent challenges: low yields, limited market access, and climate risks. Yet, technology innovations are reshaping this landscape, empowering farmers to grow more, sell smarter, and adapt better to changing environments.

From struggle to smart farming

Hao Diep, CEO of TechCoop, witnesses this transformation daily in Vietnam’s agricultural heartland. Farmers who once depended solely on traditional methods now leverage digital platforms to optimise their entire value chain. What was once a fragmented system of isolated smallholders has evolved into an interconnected network where technology bridges farmers, cooperatives, and agribusinesses.

This change reflects a broader revolution across Southeast Asia. In 2024 alone, 233,250 farmers improved their livelihoods through TechCoop’s platform by gaining increased market access and input financing. Agriculture remains the backbone of rural economies in this region — these numbers represent families lifted out of poverty and communities gaining resilience.

Breaking down barriers with digital innovation

The mobile revolution in Southeast Asian agriculture is fundamentally about solving real problems for real people. TNB Aura’s portfolio provides examples of how investors are supporting businesses that address core challenges in the agricultural sector.

For example, AgriAku, operating across Indonesia, partnered with 8,170 farmers in 2024, transforming how smallholders access agricultural products and manage supply chains. Their impact goes beyond scale — AgriAku has registered two agri-biological products aimed at regenerating soil and reducing synthetic fertiliser use while implementing irrigation systems that improve water efficiency and rice productivity. This shows how targeted innovation can address pressing agricultural issues, rather than deploying technology for its own sake.

Smart solutions, sustainable impact

The adoption of IoT tools and smart sensors across Southeast Asia aligns with TNB Aura’s thesis that emerging economies can take advantage of technology to bypass traditional development stages. In Indonesia, Eratani offers a comprehensive platform enabling farmers to procure inputs, access financing, and sell products efficiently.

These platforms don’t just digitise existing processes; they reimagine them entirely. According to TNB Aura, more than 209,000 small-scale enterprises across its portfolio have been integrated into digital ecosystems, shifting from isolated operations to being part of larger value chains.

Also Read: From pilot to scale: Why traditional VC metrics don’t work for climate deep tech

Opening digital marketplaces

Digital marketplaces are disrupting traditional agricultural value chains across Southeast Asia. TNB Aura’s research highlights that Indonesia, the Philippines, and Vietnam face significant development gaps but also hold substantial growth potential. Only 43 per cent of adults in these countries have bank accounts, making digital financial inclusion through agri-platforms especially transformative.

TechCoop is one example. Its MOU with Sorimachi supports cooperatives in Vietnam with access to technology, commerce, and finance — a step toward building infrastructure that TNB Aura sees as critical for long-term agricultural development.

The ripple effects extend beyond individual transactions. When farmers gain access to digital marketplaces, they join ecosystems enabling “better access to new technology, financial services, and market integration opportunities,” particularly in tier 2 and 3 cities that face developmental challenges.

Climate resilience through technology

Climate change poses Southeast Asia’s greatest challenge — and biggest opportunity for tech-driven solutions. TNB Aura estimates a US$~1.49 trillion investment gap in regional decarbonisation efforts, viewing climate adaptation as both a necessity and an opportunity.

AgriAku’s bio-fertiliser products, considered among the safest alternatives to chemical fertilisers, boost productivity while promoting environmental sustainability. This aligns with TNB Aura’s Fund 3 focus, where about 40 per cent of commitments are directed toward decarbonisation and climate resilience.

Focusing on climate-smart agriculture reflects TNB Aura’s understanding that “the climate crisis threatens to set back development efforts, including progress on the SDGs.” By backing companies that help farmers adapt while reducing environmental impact, TNB Aura creates a “flywheel of innovation, growth, and impact.”

Also Read: Soil, smoke, and solutions: Farming meets climate action

Community-wide transformation

The broader impact of agricultural technology is evident in TNB Aura’s portfolio-wide metrics. The firm reports that 84 per cent of its workforce operates in OECD ODA-eligible countries, with 60 per cent of portfolio employees being women — indicators that reflect how agricultural technology businesses can contribute to inclusive employment.

TechCoop’s CEO Hao Diep notes that despite recent market uncertainties, inbound equity interest remains strong: “The sour investment climate has not affected investor interest, as businesses solve fundamental problems rather than chasing trends.”

Across TNB Aura’s Fund 2 and Fund 3 companies, five million individual beneficiaries represent communities where technology is driving lasting change. These are not just platform users, but participants in restructured economic systems with improved access to goods and services.

Following the flywheel

TNB Aura’s approach to agricultural technology reflects a broader investment philosophy: identifying tomorrow’s tech champions by integrating global precedent research with regional sustainability challenges.

To date, the firm has analysed more than 660 precedent business models, informing 24 investments across three funds, with agricultural technology serving as a core focus. As David Bonifacio, Managing Partner and Lead for Value Creation, explains: “Value creation at TNB Aura focuses on laying foundations, applying management best practices, and developing strategic initiatives to build dynamic organisations and strengthen our right to win.”

This systematic approach creates a flywheel effect: data-led insights inform backing the best companies, institutionalising growth, and unlocking the next innovation wave. Each successful agricultural tech solution creates resources and knowledge that fuel further impact.

Also Read: Eco-investing: Driving change through climate technology and strategic finance

Looking to 2025 and beyond

TNB Aura’s commitment to agricultural transformation is intensifying. The firm has stated that it aims to direct over 90 per cent of Fund 3 capital to OECD ODA-eligible countries, with particular emphasis on Indonesia, the Philippines, and Vietnam, which it views as high-potential markets for growth and SDG impact.

As Hao Diep reflects on TechCoop’s approach: “We prioritise scalable impact, empowering cooperatives and agri-SMEs with digital solutions to optimise production and facilitate supply chain partnerships, even if short-term profitability requires compromise.”

This long-term perspective underscores TNB Aura’s central belief: sustainable growth and meaningful community impact are two sides of the same coin. In Southeast Asian agriculture, technology isn’t just changing how farmers work; it’s reshaping entire communities and laying the foundation for a more resilient, prosperous future.

The transformation is underway. The real question is how quickly entrepreneurs, investors, and policymakers can scale solutions already proving their worth across the region’s fields.

Disclaimer: The views, opinions, and analyses expressed herein are solely my own and do not necessarily reflect those of TNB Aura, its affiliates, partners, or representatives. Any observations shared are based on my personal perspective and professional experience working at TNB Aura and should not be construed as official statements, positions, or endorsements of the firm.

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Asia’s climate-health crisis is no longer a looming threat; it’s a lived reality. As the region grapples with record-breaking heatwaves, floods, and rising disease burdens, the intersection between planetary and human health has become impossible to ignore. Yet, as the Unlocking Capital for Climate x Health report highlights, the financial response remains perilously out of sync with the scale of the problem.

The data is damning: while trillions flow into global climate finance, a mere 0.5 per cent supports health adaptation. The imbalance between mitigation and adaptation reveals a dangerous blind spot–one that leaves communities unprotected against the very impacts already unfolding.

To bridge this divide, Asia needs a reimagined investment framework that places health resilience at the centre of climate strategy. This means mobilising catalytic capital, incentivising private participation, and building blended-finance models that can unlock systemic change. The rise of innovations–from AI-driven disease monitoring to cooling solutions–shows promise, but these require patient capital to reach scale.

Ultimately, Asia’s ability to withstand the climate era depends not just on cutting emissions, but on fortifying human systems. Health must move from the sidelines of climate finance to its beating heart, where lives and livelihoods truly intersect.

REGIONAL

Iterative tops Southeast Asia VC rounds as startups raise US$1.4B:
VC investment in the regional startups hit US$1.4B in over 110 rounds in 2025, according to Tracxn. More than 200 VC firms participated, with Iterative leading 14 rounds, surpassing Antler as the region’s most active investor.

Qapita secures US$26.5M Series B, enters US with Schwab partnership: The Singaporean fintech firm builds digital infrastructure for private markets across Asia and beyond. Its full-stack digital platform and service offerings seek to transform how ownership is managed, reported, and unlocked in private market ecosystems.

SGInnovate backs Vycarb’s US$5M seed round to accelerate water-based carbon capture: Vycarb aims to accelerate commercialisation and expand its deployments globally, positioning its water-based CCS system as a critical enabler of industrial decarbonisation and a meaningful step toward a low-carbon future.

HSBC launches cross-border tokenised deposit service in Singapore: The service enables real-time, 24/7 settlement and was used by Ant for instant SGD and USD payments between corporate wallets at HSBC Singapore. In September, HSBC completed its first USD cross-border digital token transaction for Ant between Hong Kong and Singapore.

Green GSM to deploy 2,000 EVs in Philippines with local partner: It will supply the vehicles to AMRC Renewable Corporation/Xentro Motors, with the first 1,000 units already secured and the remaining to be delivered over two years. Xentro plans to use its nationwide network for pick-up zones, EV charging stations, and parking areas.

REPORTS, FEATURES & INTERVIEWS

Asia’s climate-health crisis deepens amid massive funding gaps: As per an AVPN study, climate-driven disasters resulted in US$253B in damages globally in 2021 alone, largely uninsured in low-income regions, and 470B work hours were lost due to heat-related impacts.

Transparency, accuracy and validation key to building Singapore consumers’ trust in AI agents: According to Salesforce’s latest Connected Financial Services report, 65 per cent of Singapore consumers somewhat trust AI agents in financial services, yet only 12 per cent express full confidence. 60 per cent expect AI to play a more significant role in financial services than in other industries.

Report: AI adoption fuels record growth in Singapore’s digital economy: The Singapore Digital Economy Report 2025 highlights a striking surge in AI adoption across both firms and workers in 2024. Among non-SMEs, AI adoption jumped from 44 per cent in 2023 to 62.5 per cent in 2024.

The illusion of intelligence: Why LLMs are not the thinking machines we hope for: LLMs like GPT-4 are trained on trillions of words and can generate human-like text in response to prompts. Their outputs are fluent, coherent, and at times insightful. But this is not intelligence. It is sophisticated pattern completion.

INTERNATIONAL

AI expert Yao Shunyu leaves Anthropic over anti-China stance: Yao Shunyu’s move comes as Anthropic’s position on China aligns with a broader trend among US AI firms, while DeepMind’s leadership has advocated for US-China collaboration in AI safety.

Bank of England warns of market risk from AI bubble: Its financial policy committee said equity market valuations, especially for AI-focused firms, appear stretched and could be exposed if optimism around AI dims. OpenAI’s value jumped from US$157B last October to US$500B, while Anthropic soared from US$60B in March to US$170B last month.

Musk’s xAI team reportedly worked on adult content for Grok: Grok drew criticism after launching avatars that users flagged for generating sexually explicit, not safe for work content. The company is said to have recruited workers willing to review semi-pornographic scripts and those with experience in adult content.

India’s NPCI tests ChatGPT payments with Razorpay: The new service, still in testing, lets users make purchases on ChatGPT using Unified Payments Interface (UPI), India’s digital payments network. The pilot will assess if UPI can be used to let AI agents handle payments for users while maintaining security and user control.

Citi backs stablecoin firm as US banks expand into digital assets: BVNK provides payment tech that enables businesses to transact using stablecoins. The move comes as US regulation for digital assets becomes more defined, with the recent passage of the GENIUS Act aimed at regulating stablecoins.

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ECHELON

From bean to breakthrough: Chocolate Finance’s recipe for resilience: Today, Chocolate Finance reports a steady return of customers, drawn by consistent yields and a reputation for reliability. Walter Oude, founder and CEO of Chocolate Finance, shared the company’s journey of resilience in the face of early challenges.

SEMICONDUCTOR

Chinese subsidiaries of US chip firm face sanctions over Iran ties: The US government has sanctioned over two dozen companies in China, Turkey, and the United Arab Emirates, including subsidiaries of US chip distributor Arrow Electronics, for allegedly supplying technology to Iran’s military or its proxies.

US approves some Nvidia chip exports to UAE: The approval follows an Emirati commitment to invest a matching amount in the US, with plans to invest US$1.4T over the next ten years. The initial batch of licenses does not cover G42, an AI firm from the UAE working with OpenAI, though a fifth of future shipments may go to them.

Chinese chip designer VeriSilicon’s Q3 revenue up 120 per cent on AI demand: The company said orders related to AI computing made up 65 per cent of new orders in Q3, with new order volume up 146 per cent year-on-year to nearly US$220M. VeriSilicon offers custom chip design and semiconductor IP licensing services.

AI

AI for everyone: 25 tools to automate, create, and innovate: Lovable simplifies app and website building. It’s like telling a robot what you want, and it builds the website for you. On the other hand, Napkin.ai simplifies idea mapping. You type an idea, and it draws the flowchart for you.

‘AI sees deep into your business, not just the surface’: NetSuite’s Evan Goldberg: “Transactions are the ‘atomic unit of business’,” he said, giving AI a clean, consistent starting point. “AI doesn’t just guess; it starts from the source because your data is unified. AI understands your full context… it sees deep into your business, not just the surface,”

How voice AI is revolutionising the fintech scene
Conversational technology offers the possibility of interactions that are more valuable, simple, intuitive and personalised for the customer, thanks to the data collection and analysis required for conversations.

Operational AI: The silent, yet, strategic revolution shaping modern business: Renowned for its capability to craft content, spanning images, text, and even music, akin to human-generated creations, Generative AI is exemplified by technologies such as OpenAI’s GPT-3, adept at generating human-like text, and DALL-E.

AI won’t replace influence — it will amplify it: The world of influence has changed more in the last two years than in the last two decades. Speakers, creators, and founders are no longer just voices; we’re systems. And those systems now run on AI.

THOUGHT LEADERSHIP

The real story behind AI project implementation: Why it’s not (just) about technology: There’s a cruel irony in many AI initiatives: the executives demanding “AI transformation NOW!” are often the furthest from the daily operational inefficiencies that AI could actually provide the best value.

Low-altitude economy hubs in the Indian Ocean: Nairobi, Madagascar, and Sri Lanka: In Nairobi, investors should focus on expansion county corridors, integrated e-commerce and health supply chains, and regulatory sandboxes for new payload types. Madagascar, on the other hand, focuses on heavy-lift airship cargo.

Scaling business growth and efficiency with embedded payments: Instead of managing the relationship and integration with the payments providers themselves, SMEs are now ready to use embedded payment services by their platforms – integrating payments into their full business process.

How travel apps are stirring up wanderlust among youngsters in Asia: It can be said that allowing young people to freely decide whether to travel freely or travel alone is a big contribution from convenient travel apps. Travel apps solve everything you need when travelling, and that’s why it’s more and more popular among young people.

Bridging the financial inclusion gap in Asia: The role of fintech: If fintechs are going to develop solutions that will help to narrow the bankable gap, they need to understand and meet the unique needs of Asian consumers and the commercial landscape more broadly. It also requires fintechs to be alive to the mega trends facing the region.

The future of payments is frictionless, orchestrated and agentic: A frictionless experience is one where the checkout anticipates user needs, where biometrics replace forgotten passwords, where currencies and taxes are handled seamlessly in the background, and where compliance doesn’t interrupt the flow but is embedded naturally into the journey.

Southeast Asia’s fintech can help set the standard for gender inclusion: The region makes for a promising case in female inclusion because its fintech ecosystem is still young. Unlike the more mature markets, there is still room to shape the rules of the game, set new norms.

The post Ecosystem Roundup: Asia’s climate-health crisis deepens as funding lags | SEA tech VC hits US$1.4B | Qapita raises US$26.5M Series B appeared first on e27.

The past week has seen a noticeable retreat in global risk appetite, with traders and institutional investors adopting a more cautious stance ahead of the third-quarter earnings season. This consolidation phase reflects a natural pause following a strong rally in equities, with market participants reassessing valuations and positioning themselves for potential volatility once corporate earnings reports begin to roll in.

US equities closed lower on Thursday, with the Dow Jones Industrial Average shedding 0.5 per cent, the S&P 500 down 0.3 per cent, and the Nasdaq Composite slipping 0.1 per cent. These modest declines underscore a broader theme of profit-taking rather than panic selling, suggesting that the market remains fundamentally sound but increasingly selective.

Adding to the uncertainty, key US economic data releases have been disrupted by the ongoing government shutdown. Weekly jobless claims and wholesale trade figures, initially scheduled for Thursday, remain delayed, depriving analysts of timely insights into labour market resilience and inventory trends. Market attention now shifts to Friday’s release of the University of Michigan’s preliminary consumer sentiment index for October.

Given that consumer confidence often serves as a leading indicator of spending behaviour and economic momentum, this report could significantly influence near-term market direction, especially if it reveals a sharp deterioration in household outlooks amid persistent inflation concerns or rising borrowing costs.

Meanwhile, the bond market continues to reflect a nuanced outlook on monetary policy. US Treasury yields edged higher, with the benchmark 10-year yield climbing 2.1 basis points to 4.138 per cent and the two-year yield rising 1.2 basis points to 3.593 per cent. The modest uptick in yields suggests that investors are recalibrating expectations for future Federal Reserve rate cuts, possibly in response to resilient economic data or hawkish commentary from central bank officials. This dynamic places additional pressure on equities, particularly growth-oriented sectors that are sensitive to higher discount rates.

Currency and commodity markets also mirrored the prevailing risk-off mood. The US Dollar Index strengthened by 0.6 per cent to reach 99.54, benefiting from its traditional safe-haven status during periods of market caution. Conversely, gold retreated 1.6 per cent to US$3976 per ounce after briefly touching a record high.

The pullback in the precious metal appears driven by profit-taking rather than a fundamental shift in its appeal as a hedge against uncertainty. Similarly, Brent crude oil settled 1.6 per cent lower at US$65.22 per barrel, pressured by easing geopolitical tensions in the Middle East and the broader retreat from risk assets.

Also Read: Global risk-off sentiment emerges as political instability meets cryptocurrency correction

In Asia, equity markets displayed a mixed performance. The Chinese CSI 300 index surged 1.48 per cent on Thursday, its first trading day following the week-long National Day holiday. The rally was led by sectors tied to artificial intelligence and gold, reflecting both domestic policy optimism and global commodity trends.

However, early trading sessions on Friday showed more subdued activity, indicating that the initial post-holiday euphoria may be giving way to more cautious positioning. Notably, US equity index futures point to a higher open on Wall Street, suggesting that the recent dip may have created attractive entry points for bargain hunters.

Amid this backdrop, Bitcoin has emerged as a focal point of intense speculation and technical scrutiny. The cryptocurrency is currently trading above US$121,000, yet it faces mounting bearish pressure that could trigger a test of critical support levels. On Thursday, Bitcoin briefly dipped below the psychologically important US$120,000 mark, reaching an intraday low of US$119,810 before recovering slightly. This move, which represented a nearly three per cent decline in a single session, highlights the asset’s vulnerability despite its lofty valuation. Technical indicators reinforce this cautionary tone.

The hourly chart reveals a developing bearish trend line, with resistance forming around US$122,750. Bitcoin now trades below both the US$121,500 level and its 100-hour Simple Moving Average, signalling weakening short-term momentum. Immediate resistance sits at US$121,750, while the hourly MACD shows increasing strength in negative territory and the RSI has fallen below the pivotal 50 level, both classic signs of bearish dominance.

The derivatives market further underscores this fragile sentiment. Total derivatives volume plummeted by 15.24 per cent to US$478.15 trillion, while open interest in perpetual contracts declined by 1.29 per cent. This contraction coincided with Bitcoin’s drop below US$124,000 and triggered approximately US$700 million in liquidations.

The high leverage embedded in the system, evidenced by open interest standing at US$1.12 trillion, amplified the downside as leveraged positions were forcibly unwound. Traders appear to be reducing exposure in response to stretched technical conditions, with the 14-day RSI hovering near 69.88, just shy of overbought territory. Moreover, the spot-to-perpetuals trading ratio of 0.22 indicates that derivatives activity continues to dominate the market, rendering it especially susceptible to sharp swings and cascading liquidations.

Also Read: From Tokyo to crypto: How political shifts and policy bets are reshaping global markets

Compounding Bitcoin’s challenges, the altcoin ecosystem is experiencing its own wave of selling pressure. New token launches such as ASTER and MIRA have faced immediate post-listing declines, driven by large-scale airdrops and token unlocks. ASTER’s Phase 2 airdrop released four per cent of its total supply, prompting whales to offload 28.3 million tokens and driving the price down by 10 per cent.

Similarly, MIRA’s circulating supply surged by 191 million tokens following its Binance listing, overwhelming market demand. These events highlight a recurring pattern in the crypto space: token unlocks often lead to immediate sell-offs, particularly when projects lack robust utility or sustainable demand drivers. The Altcoin Season Index has consequently fallen by 11.76 per cent, signalling a clear rotation of capital back into Bitcoin as investors seek relative safety within the digital asset class.

Regulatory uncertainty adds another layer of complexity. In the United States, Senate negotiations on comprehensive crypto market-structure legislation have stalled, with Democratic proposals on decentralised finance (DeFi) oversight meeting resistance from Republican lawmakers. This legislative gridlock prolongs the regulatory limbo that has long plagued the industry, creating headwinds for institutional adoption and altcoin valuations.

However, there remains a counterbalancing bullish narrative. Former President Donald Trump’s recent overtures toward establishing a US strategic Bitcoin reserve have reignited speculation about potential pro-crypto policies should he return to office. While purely aspirational at this stage, such rhetoric provides a psychological floor for long-term Bitcoin bulls who view regulatory clarity, even if delayed, as inevitable.

In sum, the current market environment reflects a delicate equilibrium between optimism and caution. Equities are consolidating after a strong run, bonds are pricing in a more hawkish Fed, and commodities are reacting to shifting risk sentiment. Bitcoin, despite its record-breaking price, shows clear signs of technical fatigue and structural vulnerability.

Yet, beneath the short-term turbulence lies a persistent belief in its long-term potential, particularly if it can overcome key resistance levels and navigate the evolving regulatory landscape. For now, investors remain in a holding pattern, awaiting the next catalyst, whether from corporate earnings, economic data, or policy developments, to determine the next major market move.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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