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Pantera Capital’s CEO says FTX’s collapse was not attributable to blockchain failure.
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In a letter to buyers, Dan Morehead stated there’s a want for trustless methods within the ecosystem.
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Enterprise within the blockchain house is shifting again to protected entities, Morehead added.
Blockchain shouldn’t be blamed for FTX’s collapse
Cryptocurrency change 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 at present speaking about one of the simplest ways to manage the market.
Nevertheless, whereas commenting on the occasion, Pantera Capital’s CEO, Dan Morehead, stated FTX’s collapse doesn’t imply that blockchain expertise 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 can be nonetheless working. He stated;
“There are exchanges like Coinbase, Kraken, and Bitstamp that, when a shopper sends cash to them, they simply put it in a financial institution. The answer is fairly easy. 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 expertise. It’s not crypto that failed. Bitcoin and all the opposite protocols labored completely.”
Along with centralised crypto change, Morehead added that decentralised protocols are nonetheless working nice. The Pantera boss pointed towards decentralised exchanges like Uniswap, 0x, 1inch, Balancer and Dodo, stating that they proceed to work nice.
Secure entities are actually attracting companies within the house
Morehead added that enterprise within the cryptocurrency house is now going to protected and safe corporations. Cryptocurrency corporations have to be audited to make sure that their funds are nice. The Pantera Capital CEO stated;
“Regulated, clear, onshore, and/or audited exchanges are seeing a dramatic enhance in market share. That is basically getting again the shoppers who fled to offshore exchanges for extra property/probably unregistered securities provided 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.