The crypto market has been on the downside for a couple of times, but it is almost every aspect of global finance. This looks like a global recession is kicking, but the people involved in crypto are seen differently. There is a statistic that over $1 billion has been lost in crypto since 2021 due to scam, rug pull, hack, and others. This happens in every area of finance, both the centralized financial systems. However, the decentralized systems do not have the government's hand and people seem to be more sceptical about it.
At first crypto regulation seems like a pain in the ass, but currently, a lot of people are calling for it. We are yet to reach the utopia in the financial system and more improvement is coming. The likes of FTX were the bomb in the market, and others like Luna. This is because they were big and people trusted them.
Currently, the fact that there is no regulation and government watch makes some people not consider crypto as an investment. While crypto is the aim of decentralization, criminals and scammers take the advantage and it is a major concern.
Cryptos are investments and CoinMarketCap and the rest are trying their best to provide data that shows the best of assets but that doesn’t show the entire quality and security of funds on any projects. So we may settle for regulation.
There are so many factors that drive the value of cryptocurrencies including basic hypes and this is another problem. A shit coin can get $millions and the few guys behind the scene can cash out big from it.
So I see the future where there will be a framework of regulation that crypto projects will have to put in some funds in the government account based on the amount of investment and investors to serve a backing for the investor's funds. Then projects like this will be more safe for investment. Every crypto project serves as a financial institution and most people want to be sure their funds are safe.
In this great decentralized ecosystem, we must create a medium for the security of funds for better global adoption.
Just my thought. What do you think?
I am tykee, I code and write
