Will Crypto Survive FTX?
The unfortunate events that have transpired the last few days left many broken hearted, financially destitute, and have left a life long scar in the crypto space. An industry that has consistently faced consistent trial and tribulations in the form of scammers stealing millions in investor funds, founders with checkered backgrounds, international money laundering schemes, and unfocused regulatory frameworks yet to be implemented. Not to mention a relentless bear market that seemingly will get a bit more brutal before its welcomed exit.
The FTX debacle is yet another case of irresponbility due to the lack of transparency, character, and wasn't much more sophisticated than a room full of dressed down gamblers. This is a terrifying black eye on the industry and proves yet again why regulation is so desperately needed in a space of hardcore degens with access to millions of dollars.
How could this happen?
Sam Bankman-Fried, aka, SBK is the charismatic intellectual and the lead character in the drama that has unfolded at FTX where he was allegedly co-mingling customer funds to the tune of $10-$15B. Now, just to be clear the issues at hand seem to be directly correlated to FTX International, as FTX US is said to be functional at a 100% liquidity - I remain cautiously optimistic so let’s see how this plays out.
I’ve been on multiple social media channels almost reading like a trove of sob stories, i.e., people saying they lost everything, others pleading for an explanation, and some still in utter disbelief or denial. Many will have to recalibrate their finances to survive and move forward.
On a final note, please DO NOT place any significant amount of your holdings in any one exchange or platform. Additionally, it may be wise to invest in a hardware or cold wallet to store crypto assets providing full ownership of your keys. A balanced portfolio with a solid amount being liquid to access capital in any situation - particularly in today’s world may be the way to go.
As always, stay positive and keep safe.