In the last few weeks, we have seen many negative events in the Crypto space with the collapse of FTX, which led to the loss of over $500 million of investor’s funds. Consolidated media has reported this as the ‘biggest bitcoin scam’ and investor are left wondering what’s next.
The reactions from the industry have been mixed, with a number stating that this is a sign of the corruption that Crypto is faced with. A view shared by many, some in the crypto community are suggesting that it’s simply a blip on the radar and that Crypto is still in its infancy stages of growth.
The wrong move
Firstly, this proves that the Crypto industry suffers from a lack of regulation. With the lack of regulation, it’s inevitable that there are scams like this that will happen.
It’s vital that countries work together in order to regulate Crypto and to ensure that investor are protected. The sooner this is addressed the better off the industry will be.
A recovery to 2018 levels
This incident is likely to cause investor to take a step back, however, many will see this as a buying opportunity. FTX was one of the biggest Crypto exchanges, which means that a lot of investor lost a lot of money.
This is likely to lead to investor selling off their Crypto holdings and moving into fiat, which will result in an increase in the price of bitcoin and other cryptocurrencies. This will result in the recovery back to 2018 levels.
The impact on the wider Crypto ecosystem
The FTX incident is likely to have an impact on the wider ecosystem. Despite the lack of regulation and the prevalence of scams, the Cryptocurrency market is still growing.
Many investor in fiat still consider the Crypto market to be risky, however, this incident is likely to challenge this.
The Crypto market is still growing with more investor joining every month. Despite this, the scams and scandals are going to have an impact on the wider ecosystem.
Regulation
The industry needs regulation, however, there are a number of factors that need to be considered. The regulation needs to be clarified and there needs to be cooperation between countries.
The regulation needs to be clear and transparent, this will enable investor to make informed decisions.
Security
The security of your Cryptocurrency is paramount. With greater regulation, security will improve.
The security of your Cryptocurrency is dependent on the wallet that you use. Ensure that you use a reputable wallet provider.
Final thoughts
The FTX incident is likely to have an impact on the wider ecosystem. Despite the incident, the Crypto market is still growing.
The industry needs regulation, however, there are a number of factors that need to be considered. The regulation needs to be clarified and there needs to be cooperation between countries.
The security of your Cryptocurrency is paramount. With greater regulation, security will improve.
The security of your Cryptocurrency is dependent on the wallet that you use. Ensure that you use a reputable wallet provider.
