The collapse of FTX does not mean the failure of blockchain technology or cryptocurrencies, as regulated exchanges continue to perform well. This opinion was expressed by Pantera Capital CEO Dan Morehead in a letter to investors.
“If you can’t trust FTX who can you trust?!”
The two-pronged answer is:
Regulated exchanges work great eg @coinbase, @bitstamp
DeFi works great, specifically DEXs eg @uniswap, @Balancer, @BreederDodo
Business is moving back to safe entities.
More: https://t.co/Ph0i9IuS9h pic.twitter.com/9E1v1fs0gO
— Dan Morehead (@dan_pantera) December 20, 2022
He cited Coinbase, Kraken, and Bitstamp as examples. These platforms, along with Upbit, have increased their market share by 30% since October, according to Morehead.
“These are exchanges that when a customer sends them money, they just deposit it in the bank. A simple solution. It is obvious that trade here will turn to regulated sites, ”the head of Pantera believes.
He also noted that licensed subsidiaries of FTX like LedgerX or units in the US were not affected by the liquidity crisis at the parent structures.
“This is a powerful symbol of why smart regulation is good for the industry – it protects investors, ensures disclosure and transparency,” Morehead said.
According to the founder of Pantera, a full-fledged audit by firms will contribute to transparency and trust in the crypto industry “Big Four”. The promoted Proof-of-Reserves option is a partial answer, he is sure.
Morehead noted that FTX’s actual bankruptcy was likely much earlier. He cited an interview with Sam Bankman-Freed in which the founder of the exchange acknowledged that affiliated trading firm Alameda Research had problems back in May, after the collapse of the Terra ecosystem.
However, he allegedly found out about them many weeks later. The reason for the ignorance of the ex-CEO of FTX was the lack of normal financial and accounting records. Any audit of the auditors would reveal that, Morehead said.
“The narratives being propagated by blockchain skeptics, as well as by some regulators and politicians, are missing the point. The collapse of FTX has nothing to do with distributed ledger technology. It wasn’t the cryptocurrency that failed. Bitcoin and all other protocols work perfectly,” he stressed.
In this regard, he also mentioned the unregulated DeFi sphere. In his opinion, users can trust leading representatives like Uniswap, 0x, 1inch, Balancer and DODO.
Recall that in November, Pantera partner Paul Veradattakit said that the bankruptcy of FTX had a negligible impact on the company’s business.
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