Pantera Capital’s CEO says FTX’s collapse was not attributable to blockchain failure.
In a letter to buyers, Dan Morehead stated there’s a want for trustless techniques within the ecosystem.
Enterprise within the blockchain house is shifting again to protected entities, Morehead added.
Blockchain shouldn’t be blamed for FTX’s collapse
Cryptocurrency trade FTX collapsed in November following the mismanagement of buyer funds by Sam Bankman-Fried and his executives. Since then, the information of the collapse has dominated headlines, with regulators and legislatures in america presently speaking about one of the simplest ways to control the market.
Nevertheless, whereas commenting on the occasion, Pantera Capital’s CEO, Dan Morehead, stated FTX’s collapse doesn’t imply that blockchain know-how has failed.
In a letter to investors a number of days in the past, Morehead stated blockchain didn’t fail. He added that there are regulated entities within the cryptocurrency house which are nonetheless working. He stated;
“There are exchanges like Coinbase, Kraken, and Bitstamp that, when a consumer sends cash to them, they simply put it in a financial institution. The answer is fairly simple. The narrative that blockchain skeptics and a few regulators and politicians are pumping out misses the purpose. The collapse of FTX had nothing to do with blockchain know-how. It’s not crypto that failed. Bitcoin and all the opposite protocols labored completely.”
Along with centralised crypto trade, Morehead added that decentralised protocols are nonetheless working effective. The Pantera boss pointed towards decentralised exchanges like Uniswap, 0x, 1inch, Balancer and Dodo, stating that they proceed to work effective.
Secure entities are actually attracting companies within the house
Morehead added that enterprise within the cryptocurrency house is now going to protected and safe firms. Cryptocurrency firms should be audited to make sure that their funds are effective. The Pantera Capital CEO stated;
“Regulated, clear, onshore, and/or audited exchanges are seeing a dramatic enhance in market share. That is primarily getting again the purchasers who fled to offshore exchanges for extra belongings/probably unregistered securities supplied to commerce, extra leverage, and decrease charges. Since October, the market share of exchanges like Coinbase, Kraken, Upbit, and Bitstamp has elevated 30 proportion factors.”
Morehead added that he hopes the pattern continues as that might guarantee the expansion of the broader cryptocurrency market.