Crypto Is Not FTX : Separating Digital Assets From Fraud Companies
So FTX crashed or rather collapsed and people were very quick to highlight how this act is a sign that crypto is about to die, I had a friend who sent me videos of FTX collapse, indirectly sending FUD to me, then going ahead to talk about how he avoids crypto because of things like this. That day was just one of those days where I didn’t feel like explaining what crypto or how crypto works because at this point, I feel like I am talking too much and bothering people about crypto and how it’s inevitability and longevity can not be avoided, it’s fact. Same goes to the crypto FUDers and the other crypto critics.
FTX doesn’t own crypto, it was just a scam organization that maneuvered its way to be at the top, and they were very good at it. The reason why FTX collapse hit the crypto market so hard is because, FTX worked so hard in gaining the world’s trust and distracting the world from the fact that they were a fraud organization. They partnered with a lot of companies, used one of the top A list celebrities, bought naming rights of stadium and arena. We were too busy cheering them we got distracted.
Cryptos are digital assets that are meant to have utilities and usecases, no matter what FTX or any other organization does to make crypto seem like fraud, it will never stop crypto from being adopted or having its technology utilized. It might delay for a little while, but then, the crypto market will move on. Other crypto companies have come and gone, they have failed, but here we are, the crypto market is still active and crypto is still not dead. FTX mishandled customers funds and mixed them with alameda research and took big trading risks with them and lost, causing them to be out of liquidity and filing for bankruptcy. That is the work of a fraud company, other companies of different economic sectors have done this in the past and more companies will still do it. The problem is not the product the problem is the mindset of the fraudsters handling the product.
Cases like this will also have people look for means of making sure such things don’t repeat itself. Firstly we heard of a lot people building mire DeFi platforms because it’s obvious we need more DeFis than CeFis for obvious FTX reasons. We have also seen more eues focused proof of reserve on CeFis, so as not to get blindsided by scam platforms just like FTX did to the world.