I was happy that it happens earlier than in the time when many holders and investors put their money into this platform and more people suffer losses.
But I see the bad impact of it in crypto,
- trust will become a problem, and it is hard for new exchanges to gain trust.
And the good impact is that,
- it will give a lesson for those who think about using exchanges as a storage platform and make themselves stay away from doing it.
Topic: FTX collapse: Good or bad for crypto in the long run? - page 5. (Read 1105 times)
FTX and Luna collapse might be a blessing in disguise. Look at it this way. Crypto has been much maligned to being a den of thieves. Now if these 2 heavyweights fall, a lot of regulations would be imposed by crypto by the government. If these regulations work out, it would help sanitize the industry and make it more attractive for no-coiners
Strict regulations must be immediately implemented, the state cannot be silent when large cases and big scams occur and are detrimental to its citizens, besides the application of regulations certainly provides good opportunities for serious developers and honest to develop and from the country side can certainly get income from taxes income.
It has become a threat to the government because they cannot print how they will fund all their emergencies, and it's going to be hard for them to allot that because it's made to be scarce and not be an inflationary asset, which is ideal for this. I think it's suitable for the people looking forward to buying cheaper assets, compared to those who are just getting in on the action. Maybe it's a great way to introduce crypto because it's at a discounted rate.
FTX and Luna collapse might be a blessing in disguise. Look at it this way. Crypto has been much maligned to being a den of thieves. Now if these 2 heavyweights fall, a lot of regulations would be imposed by crypto by the government. If these regulations work out, it would help sanitize the industry and make it more attractive for no-coiners
I would say that it is a good thing on the long run. Of course this was not the right time for this to happen as it will take a lot of people's belief in cryptos away, but on the long run is one less problem the community would have to deal with. So, better to have it already dealt with than in the future that would probably affect a lot more users.
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Despite the setbacks, it may be too early to tell crypto is dead for good. The industry still hasn't gone fully mainstream, so there's still time to buy and "hodl" more coins before this happens. Once a vast number of people worldwide are aware of Bitcoin and its variants, market prices will never be as "cheap" as they are right now. Who knows what the future holds for the entire crypto/Blockchain space? Just my thoughts
FTX and sam was talked about morning news talkshow just few days ago in here, and people actually knew what they were talking about in that programDespite the setbacks, it may be too early to tell crypto is dead for good. The industry still hasn't gone fully mainstream, so there's still time to buy and "hodl" more coins before this happens. Once a vast number of people worldwide are aware of Bitcoin and its variants, market prices will never be as "cheap" as they are right now. Who knows what the future holds for the entire crypto/Blockchain space? Just my thoughts
And 22% of the adult population in US owns bitcoin. So when is it mainstream? I mean people don't know too much about cryptos, but they don't know too much about fiat money either if you ask how it works. At least it's not going to be illegal as us won't be jailing 20% of the population.
So far only totalitarian countries have banned it and not totalitarian countries wouldn't want to seem to be in that company by banning it. Also they see that people in oppressive countries can use wallets as a storage so that governments won't be confiscating their wealth.
Any unfavorable event that the cryptocurrency market survive is always good in the long run. That said, having errors and survive it makes the market stronger. People will learn from the mistakes and will have knowledgeable in the next event. If ever you heard the song "doesn't kill you makes you stronger", I believe that also applies to the cryptocurrency market. Past mistakes can be patch up by new method that solve the problem that lead to that mistakes.
So having the government thinking of regulating the cryptocurrency market may bring a bad taste to crypto enthusiasts because they are used to having freedom and not regulated but for a long run, having an ecosystem that is free from scams and fraud will boost confidence to the market, enabling people who are hesitant to join the crypto wagon will gladly jump and propalgate in the crypto industry.
So having the government thinking of regulating the cryptocurrency market may bring a bad taste to crypto enthusiasts because they are used to having freedom and not regulated but for a long run, having an ecosystem that is free from scams and fraud will boost confidence to the market, enabling people who are hesitant to join the crypto wagon will gladly jump and propalgate in the crypto industry.
I think it's still possible to enjoy "freedom" with crypto/Blockchain tech by using decentralized alternatives to existing centralized services. Regulations would only be there to ensure the industry is as legitimate as possible among the eyes of investors and traders alike. I believe governments will tighten regulations after the FTX collapse, but not to a point where it does more harm than good towards the growth of this nascent industry. The current unfortunate series of events will serve as a lesson for customers to never leave their hard-earned coins on an exchange. You can see why many people have drained their coins after the FTX scandal. I think this will force centralized exchanges to publish proof of reserves or even become non-custodial in order to gain the confidence of investors and traders alike.
Despite the setbacks, it may be too early to tell crypto is dead for good. The industry still hasn't gone fully mainstream, so there's still time to buy and "hodl" more coins before this happens. Once a vast number of people worldwide are aware of Bitcoin and its variants, market prices will never be as "cheap" as they are right now. Who knows what the future holds for the entire crypto/Blockchain space? Just my thoughts
My opinion regarding this is that many companies are profit driven and we never know how much $$$ people are capable of corrupting themselves regarding this I have a more conservative view when it comes to assets regardless of what they are that's why I see many just enjoying bitcoins not just for the fact that it has its beautiful security but for the fact that it does not have an owner.
I own a small exchange and I know how this works when a payment system is placed on it you generate a credit to the customer and this credit is not a currency but a voucher and I don't see a fiat voucher being the solution for cryptoactive exchange I keep wondering how many of these exchange's still have accounts created with these vouchers and if all accounts think of taking an amount in cryptoactive if these accounts ni final would close.
The fud's have always existed and will always exist and I believe this will not change the market or the thinking of those who invest in it.
I own a small exchange and I know how this works when a payment system is placed on it you generate a credit to the customer and this credit is not a currency but a voucher and I don't see a fiat voucher being the solution for cryptoactive exchange I keep wondering how many of these exchange's still have accounts created with these vouchers and if all accounts think of taking an amount in cryptoactive if these accounts ni final would close.
The fud's have always existed and will always exist and I believe this will not change the market or the thinking of those who invest in it.
The trick here is that either they would make even more damage, or maybe they could have turned it around make a profit and then everyone would have made even more profit. It's clear that we are talking about something that is risky here and they did something risky and that’s bad, I agree with that.
However, that doesn't mean that we should be considering them as fully gone just because they looked like that for a while. I personally believe that we should give them a bit of credit where the credit is due and say that they didn't "steal" the money but more like invested that money. Meaning if they did a good job, they would have been still around and profiting.
That is still a risk that they took and even if there was a possibility of a profit, the risk that they took was a lot beyond what the profits could have been. Only way they could have gotten away with this would be making profits more than what people withdrew daily, so if people withdrew 10 million dollars a day, they needed to profit 10+ million a day.However, that doesn't mean that we should be considering them as fully gone just because they looked like that for a while. I personally believe that we should give them a bit of credit where the credit is due and say that they didn't "steal" the money but more like invested that money. Meaning if they did a good job, they would have been still around and profiting.
The moment people withdrew all together, the day they declared bankruptcy and stopped all withdrawals. That’s why the risk which could have turned out to be a profit, wasn't enough in any case, it wouldn't be possible for everyone to withdraw, the funds users put in there wasn't there anymore and that’s always a bad result.
at least with this crash i'm sure that many of the platforms will learn to keep some huge amount of reserve so that their platform didn't easily crash like what happened right now.
these platform should be more realistic in managing money not just investing all the reserve funds that causes risk of bankruptcy and even worse using their customers money for investments which seems honestly so irresponsible and could easily cause massive chaos if things went wrong with their investments, these platform should learn from this case.
these platform should be more realistic in managing money not just investing all the reserve funds that causes risk of bankruptcy and even worse using their customers money for investments which seems honestly so irresponsible and could easily cause massive chaos if things went wrong with their investments, these platform should learn from this case.
I think the FTX collapse is good for crypto even though it has a huge negative effect at this moment. I believe it is good to weed out faulty services and greedy developers and founders than let them stay in the cryptocurrency Industry. Actually I so wanted to see fraudulent company getting exposed one by one even though it will cost the market to drop and crash momentarily but the long term effect would be good because the ecosystem is cleansed of bad actors.
Op such kind of fuds plays an important role in the capitulation and the bear zone lunch and ending as well so in my views its not a new incident this type of incidents happen to test the markets might and users holding power and it is essential for the proper flow market in a complete cycle.
The collapse of a major crypto exchange, has once again taken the world by storm. There is a lot of FUD being spread by mainstream media, making people believe this is the final chapter for crypto/Blockchain tech. Now, US lawmakers are pushing towards stricter regulations with the excuse of helping protect investors' interests. Other countries could follow the US, greatly stifling the growth of the industry. I'm beginning to wonder whenever the collapse of FTX would be good or bad for crypto in the long run? This looks like another Mt. Gox situation, so it's likely things will be better in the long run after the dust settles. But I'm not so sure, especially when governments are now seeing crypto as a threat to the existence of Fiat (something they didn't think about when crypto was in its early years).
What are your thoughts? Your input will be greatly appreciated. Thank you very much.
What are your thoughts? Your input will be greatly appreciated. Thank you very much.
Any unfavorable event that the cryptocurrency market survive is always good in the long run. That said, having errors and survive it makes the market stronger. People will learn from the mistakes and will have knowledgeable in the next event. If ever you heard the song "doesn't kill you makes you stronger", I believe that also applies to the cryptocurrency market. Past mistakes can be patch up by new method that solve the problem that lead to that mistakes.
So having the government thinking of regulating the cryptocurrency market may bring a bad taste to crypto enthusiasts because they are used to having freedom and not regulated but for a long run, having an ecosystem that is free from scams and fraud will boost confidence to the market, enabling people who are hesitant to join the crypto wagon will gladly jump and propalgate in the crypto industry.
It's very bad in the sense that regulations will become tougher than ever. This will introduce a number of obstacles between exchanges and customers themselves. While this should make crypto more "legitimate", it greatly defeats its original purpose of being middleman-free (which in turn gives you financial freedom). I can't imagine how centralized the crypto industry will become in the future as governments continue to exert pressure against it. We've seen how most altcoins turned themselves to PoS, due to "environmental concerns". With this and ever-tightening regulations, crypto would become no different than traditional banking.
On the other note, tough regulation means a safer venture for investors. Admit it or not, when the rule is loose, many fraud and scams sprout to exploit unsuspecting investors.
At least, crypto market prices won't stay down for long. Long-term speaking, people will forget all about the FTX collapse and the Terra implosion, just like it happened with Mt. Gox back then. No one knows what the future holds for crypto/Blockchain tech so we can only hope for the best. Just my thoughts
I agree, the market is capable of correcting itself. The market will recover once the FUD brought by the fiasco of LUNA and FTX is pacified.
Obviously, it's very bad for us, as we can see the market has been affected as the price goes down hard
Second, there is a call for everyone to move out their funds on exchanges, so this is not good for exchanges image as well. Although CZ has try to start a movement called proof of reserves but not sure how this will sit with customers.
Third, investors will shy away from putting their money on the next supposedly hype crypto exchange. And with that I doubt that we will hear another exchanges that will have a lot of big investors, wall streets, sports personalities and celebrities as they will not trust anyone with that sales pitch.
Second, there is a call for everyone to move out their funds on exchanges, so this is not good for exchanges image as well. Although CZ has try to start a movement called proof of reserves but not sure how this will sit with customers.
Third, investors will shy away from putting their money on the next supposedly hype crypto exchange. And with that I doubt that we will hear another exchanges that will have a lot of big investors, wall streets, sports personalities and celebrities as they will not trust anyone with that sales pitch.
It's very bad in the sense that regulations will become tougher than ever. This will introduce a number of obstacles between exchanges and customers themselves. While this should make crypto more "legitimate", it greatly defeats its original purpose of being middleman-free (which in turn gives you financial freedom). I can't imagine how centralized the crypto industry will become in the future as governments continue to exert pressure against it. We've seen how most altcoins turned themselves to PoS, due to "environmental concerns". With this and ever-tightening regulations, crypto would become no different than traditional banking.
At least, crypto market prices won't stay down for long. Long-term speaking, people will forget all about the FTX collapse and the Terra implosion, just like it happened with Mt. Gox back then. No one knows what the future holds for crypto/Blockchain tech so we can only hope for the best. Just my thoughts
FTX collapse will impact the people by skip of holding funds on exchange. This make the people to lost their hope towards the crypto currency exchanges. Even huge people losing their money in binanace exchange already. So the people loss their hope and started to buy the cold storage with the cost. Only few are prevailing their coins in their big exchanges and small exchanges. With the current situation it’s not a good way to store the funds. Spending few money for the safety is not a big task. Huge people loss entire money in their wallet. Never expected such things, So it’s wise to spend some money for Cold storage.
You came here in 2014.
Came early than us, then you should know the answers. You are through a disaster event and other (Hack, bad, ban, etc), and here we are (Bitcoin) still standing. I think you know the answer even without someone give you a post.
No need to be share.
Assuming that OP knows the answer because he came in early is weird especially when you are comparing this to, based on history as yet another cex failure.Came early than us, then you should know the answers. You are through a disaster event and other (Hack, bad, ban, etc), and here we are (Bitcoin) still standing. I think you know the answer even without someone give you a post.
No need to be share.
This has way more effect to global markets then any of those, meaning that regulators will be coming harder then ever before. I mean institutional investors got rekt. Don't you see how this affects? If your whole take on this is "one Bitcoin is still one Bitcoin", you are not paying attention.
For now you have been able to trust that liquidity and price is slowly growing by bull run after another. But you should know that anonymous and pseudonymous wallets are soon thing of The past. In The future, you'll need to prove the origin of your funds, otherwise you'll have a hard time cashing out ever. Also pow based coins could be banned from cex and so could any funds that had connection to them If things get really bad.
So maybe not just trust the protocol but vote in politicians and contracts your representatives who are willing to change this course.
*edit: fixed lot's of typos
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This looks like another Mt. Gox situation, so it's likely things will be better in the long run after the dust settles. But I'm not so sure, especially when governments are now seeing crypto as a threat to the existence of Fiat (something they didn't think about when crypto was in its early years).
The biggest problem is the trust issue with the new investors. When you see big exchanges getting shut down this easily and that too with a valuation of $50 billion when a bunch of kids played with the money they raised, it is not a great example. The biggest issue we might be facing is the strict regulations every government will be planning to implement after the fall of FTX, privacy will be a dream. This looks like another Mt. Gox situation, so it's likely things will be better in the long run after the dust settles. But I'm not so sure, especially when governments are now seeing crypto as a threat to the existence of Fiat (something they didn't think about when crypto was in its early years).
You came here in 2014.
Came early than us, then you should know the answers. You are through a disaster event and other (Hack, bad, ban, etc), and here we are (Bitcoin) still standing. I think you know the answer even without someone give you a post.
No need to be share.
Came early than us, then you should know the answers. You are through a disaster event and other (Hack, bad, ban, etc), and here we are (Bitcoin) still standing. I think you know the answer even without someone give you a post.
No need to be share.
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people will mostly forget these collapses because people basically are very careless and easy to forget their past lessons. Who can learn and remember these collapses to manage their crypto portfolio and risk better, are winners in market.
I guess that depends, if you have your whole portolio destroyed couple of times and you have just lost more money then you can afford (yea i know don't invest more then you can afford), you will most likely get even traumatized about them like me. It gets harder and harder to trust that bullruns last long and you are paying more attention to fud and inclined to dump your bags way more faster then before. This is one of the reasons i keep my money in CEX these days. So i can short if needed or just dump with my phone fast. people will mostly forget these collapses because people basically are very careless and easy to forget their past lessons. Who can learn and remember these collapses to manage their crypto portfolio and risk better, are winners in market.
The FTX collapse is both, good and bad. Depends on how you see it and who you are. If you are one of the investors or users of FTX, then yes, obviously it is bad for you. Investors and users are going to lose hundreds of thousands of dollars because of this crash. If you are CEO of the exchange, then yes, it is bad because your billion dollars got wiped within few seconds. All of these is bad for us, it has jiggled the market in worst possible way, but all of this is short term damage, but at least event like this makes people realize why centralized institutions can't be trusted blindly and how you aren't actually the owner of the coins that you own when you use a centralized exchange.
I think with FTX exchange collapse have bad side only with Bitcoin and several exchange reputation questionable at the future how trusted for saving fund in long term, beside with many member losing their assets in FTX exchange account after disable for withdrawing. Actually have bad impact when FTX collapse and many people still interested to buy FTX coins when early moment price going drop without predictable with FTX keep exist for long term. New investor will think several time when saving or investing their assets in Bitcoin or altcoin then hold it in exchange market, they have great memorize what happen with FTX will repeat moment on other bigger exchange market later.
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