While some believe the collapse of FTX is the last straw, others say it will strengthen the industry in the long run.
Is this just a big bump in the road as the world moves towards web3, or is it the brink of the cliff for the industry as we know it?
On November 12, A&T Capital organized a Twitter space featuring Footprint Analytics, Huobi Incubator and Trancrypto News to explore the effect of the FTX event on crypto and blockchain.
Here are the key points.
What just happened to the cryptocurrency market?
While the industry was built on trusting code, the rapid growth of cryptocurrencies has required centralized exchanges. We do not have any trust mechanism on centralized exchanges. In the short and medium term, market conditions will be difficult. However, this type of crisis was necessary to rethink the industry in the long term in a healthy way, since there are massive underlying problems.
“This is a good lesson for us and for the crypto market that there is nothing too big to fail in this market. People will rethink how to keep their wealth safe and institutions will rethink how best to participate in this industry. I don’t see any big investor or VC approving the ICO of any big web3 project in the next couple of quarters.” – vandescent incubator, Huobi
What kind of regulations will the FTX collapse introduce?
The cryptocurrency industry is in a gray area. Although we are decentralized, it is now clear that we need a third party to provide more security solutions and regulations. It’s a delicate balance: how can we help the industry develop while having mechanisms to show that we are capable of managing people’s wealth? Since the beginning of the crisis, SBF has never thought about how to pay its users, only how to protect its own assets. . There is no way to clean up this mess.
“People will discover that the FTX problem is not just about billions in liquidity being temporarily withdrawn; it is about the ‘liquidity’ called trust that is permanently moving away. That takes a long time to recover.” – Vandescent incubator, Huobi
“Giants like Binance and others should come up with a solution together. It is the mess of our industry. Although Binance has already withdrawn from the bailout, as long as we want to gain more users in the long term, we should not leave the exchange on the brink of collapse. Everyone in this industry should make an emergency organization to support [the users] as they can.” – Transcript
Why Binance Abandoned Its Acquisition Deal and Is It Good for Crypto?
CZ was no longer a fan of FTX regarding what happened before the crash fiasco. And after that, it’s definitely not a good deal.
“From an analytical standpoint, Binance said it would take them months to liquidate the funds, even if they can; it’s just not worth CZ acquiring FTX. The silver lining is that it gives the industry a reason to think outside the box. If it didn’t collapse now, the amount of money that could have collapsed in five years would have been much higher. But how do we regain trust? […] Right now, things are too chaotic to think of a solution.” – Alex, fingerprint analysis
This piece is contributed by the Footprint Analytics community.
Footprint Analytics is building the most comprehensive blockchain data analytics infrastructure with tools to help developers, analysts, and investors gain unparalleled insights on GameFi, DeFi, and NFTs. The engine indexes, cleans, and extracts data from 19 strings and counting, allowing users to create code-free charts and dashboards using a drag-and-drop interface, as well as with SQL or Python.
Footprint Analytics also provides a unified data API for NFT, GameFi, and DeFi across all major chain ecosystems.
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This post Does the FTX collapse really have a silver lining?
was published first on https://cryptoslate.com/does-the-ftx-collapse-really-have-a-silver-lining/