FTX's Collapse Could Change Crypto Industry Governance Standards Forever
Following the fall of FTX, experts believe that centralized exchanges will face increased regulatory scrutiny, potentially eliminating many players from the melee.
Analysis
The crypto market is often referred to as the Wild West of the financial world. However, recent events in this space would put even the most hardened cowboys of yesteryear to shame.
As a reminder, on November 8, FTX, the world's second-largest cryptocurrency exchange until about a month ago, faced an unprecedented liquidity crunch after discovering that the company had facilitated shady deals with its related company Alameda Research.
In this regard, while 2022 continues to be challenging for the global economy, the crypto sector, in particular, has been ravaged by a series of meltdowns that have had a major impact on the financial outlook and investor confidence in this regard. maturing industry. At this point, since May, an increasing number of major projects associated with this space, such as Celsius, Three Arrows Capital, Voyager, Vauld and Terra, among others, have collapsed within months.
The fall of FTX was extremely detrimental to the industry, as evidenced by the fact that after the company was dissolved, the price of most major crypto assets fell sharply, showing no signs recovery so far. For example, in just 72 hours after development, Bitcoin's value dropped from $20,000 to around $16,000, with many experts suggesting that the flagship crypto could bottom near $10,000 to $12,000, a story that has been mirrored by several other assets.
What lies ahead for cryptocurrency exchanges?A relevant question that the recent turmoil has brought to the fore is what the future now holds for digital asset exchanges, especially centralized exchanges (CEX). To live better...
Following the fall of FTX, experts believe that centralized exchanges will face increased regulatory scrutiny, potentially eliminating many players from the melee.
Analysis
The crypto market is often referred to as the Wild West of the financial world. However, recent events in this space would put even the most hardened cowboys of yesteryear to shame.
As a reminder, on November 8, FTX, the world's second-largest cryptocurrency exchange until about a month ago, faced an unprecedented liquidity crunch after discovering that the company had facilitated shady deals with its related company Alameda Research.
In this regard, while 2022 continues to be challenging for the global economy, the crypto sector, in particular, has been ravaged by a series of meltdowns that have had a major impact on the financial outlook and investor confidence in this regard. maturing industry. At this point, since May, an increasing number of major projects associated with this space, such as Celsius, Three Arrows Capital, Voyager, Vauld and Terra, among others, have collapsed within months.
The fall of FTX was extremely detrimental to the industry, as evidenced by the fact that after the company was dissolved, the price of most major crypto assets fell sharply, showing no signs recovery so far. For example, in just 72 hours after development, Bitcoin's value dropped from $20,000 to around $16,000, with many experts suggesting that the flagship crypto could bottom near $10,000 to $12,000, a story that has been mirrored by several other assets.
What lies ahead for cryptocurrency exchanges?A relevant question that the recent turmoil has brought to the fore is what the future now holds for digital asset exchanges, especially centralized exchanges (CEX). To live better...
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