FTX collapse: Good or bad for crypto in the long run? - page 6.

cheezcarls

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Quote from: Abiky on November 23, 2022, 05:43:25 PM

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.

The problem is that we do not know what would be the future outcome after the FTX collapse. There are no guarantees or promises here when it comes to the long term results as the market is uncertain.

Although we do believe that BTC and the crypto market would come back stronger, but the timeline isn’t guaranteed even after the next halving period.

posi

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Quote from: albon on November 24, 2022, 12:50:12 PM

Quote from: Abiky on November 23, 2022, 05:43:25 PM

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.

Indeed, the collapse of the FTX platform affected the destabilization of the bear crypto market and gave the market a severe blow after the collapse of the Luna and after the huge losses of investors in it. Now the FTT coin collapsed and many companies followed it into bankruptcy. I think that the Solana coin will face the same fate in the near future, so we must be careful. And I see that what led to the exacerbation of the FTX platform crisis is the Binance exchange after it withdrew from its acquisition deal. This crisis was a blow to the investors’ neck, and I hope that they learned this harsh lesson so that they do not fall into such a crisis again.

LOL, you cannot blame the crash of FTX on finance. There is no reason for binance to buy back FTX and take on the debt of up to 8 billion that FTX has lost, FTX has no potential or benefits for binance if acquired. It is true that the collapse of FTX is having serious consequences for the market but I do not feel sorry for a company so weak in asset management and dishonest in business, abusing customers' money to do things for themselves is not acceptable. It's no different than stealing other people's money.

Jackl87

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Quote from: Abiky on November 23, 2022, 05:43:25 PM

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.

To be honest i don't really see any positive aspect of that whole FTX crash at the moment. I mean the immediate effects where that the whole crypto market, that was already going down for a few months, was hit buy another big dump. Of course you can now say that this is a good opportunity to invest and such but we just don't know if we are not going to see another drop in prices of 30% or more from here on.
The only good thing is that obviously FTX was not really financially healthy anymore so i am happy that they are gone now already and that this news did not come up during the start of a potential bull market, because that would have killed it right away in my opinion.

taufik123

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Quote from: abel1337 on November 24, 2022, 11:09:11 AM

-snip-

A lesson that will become a dark history in the cryptocurrency ecosystem. Before the debacle, FTX was a fairly popular centralized Exchange and even a fledgling exchange that was able to raise billions of dollars and had many members putting money into it.
A lot of people have lost because of the FTX collapse and they can't make any submissions. This event has an impact on investors holding the FTT token which is currently falling at a price range of $ 1.4 which at the beginning before the crash was still at a price of $ 25 and once reached ATH $ 79.
this is a risk that must be borne by all FTX investors including the FTC CEO, namely SBF, who declared bankruptcy and poverty overnight.

Quote from: Maidak on November 25, 2022, 05:25:57 AM

-snip-
Bad: as you mentioned, the government will interfere and will stifle our development and our freedom. Look at the stock market, they hold them back with strict regulations and almost no privacy for investors.

The government will of course provide regulations on cryptocurrencies and these regulations depend on every government in each country. Strict regulations were put in place to discourage crypto adoption and to gain revenue from tax collection on crypto users. The government can only provide regulation but cannot completely regulate it.

Maidak

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Quote from: Abiky on November 23, 2022, 05:43:25 PM

What are your thoughts? Your input will be greatly appreciated. Thank you very much.

Good: scam or dishonest projects should best collapse and disappear from the cryptographic map as soon as possible, the market would be cleaner without such projects and the crash of FTX should crash sooner because the longer it waits, the more severe the impact will be.
Bad: as you mentioned, the government will interfere and will stifle our development and our freedom. Look at the stock market, they hold them back with strict regulations and almost no privacy for investors.

iv4n

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Of course, it's good in the long run... The bottom line is that Sam Bankman and FTX mishandled customer funds, so it's better that it's over now, if it had lasted longer it would have been an even bigger disaster. The scam is a scam, as some others already pointed out, it's better to uncover them as quickly as possible because if you let them grow we get something like this... billion dollars of damage!

I wonder what the role of Binance and CZ is in all this mess:

Quote

Members of UK Parliament have asked Binance to explain the circumstances surrounding Zhao’s November 6 tweet, and whether the company understood the potential impact it might have.

Source: He has been blamed for sparking FTX’s collapse. Now CZ wants to save crypto

justdimin

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Quote from: Wexnident on November 24, 2022, 06:03:17 AM

I'd say it's good? Cause imagine if FTX got away with what they were doing, there'd probably be more damage in comparison to it being revealed right now. Heck, it being revealed this early on just led to the issue ending early which lead to reduced damages as well. Sadly, the damage is still damaged so it's there to remain. There's also the idea that it enforces not your keys not your coins type of thing since a lot of people got hurt because of that. I do want to increase regulations though so this being brought into the spotlight might make that faster for the sake of new crypto users.

Still a pretty bad thing for most people that got hit though.

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.

adzino

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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. So, yeah, in the long run there will be more people that are aware of the danger, so it is a good thing.

GreatArkansas

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Quote from: Abiky on November 23, 2022, 05:43:25 PM

The collapse of a major crypto exchange, has once again taken the world by storm.
(....)

There are a lot of people already telling that the collapse of the FTX exchange will start a contagion effect for most of the exchanges or cryptocurrency platforms or even on some cryptocurrency projects, that's also one of the reasons why these past few weeks, there are a lot of outflow transactions to these centralized exchange which means a lot of withdrawals happening.
So for me, it was bad for cryptocurrency, FTX exchange is huge exchange.

Strongkored

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Quote from: tbct_mt2 on November 24, 2022, 04:39:50 AM

In long term, 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.

When the market returns to a bullish period there will appear news about people who profited thousands of percent overnight, and the spread of this news will always trigger people who are new or who have experienced losses because previous events have become less alert and re-enter the market recklessly, save large sums of money on exchanges, buy coins they think will be profitable in a short time or invest in new projects based on feelings only.

Quote from: Crypt0Gore on November 24, 2022, 01:22:11 PM

It's not helping crypto at all, regulation will be more strict and new investors will keep believing that crypto is a big giant Ponzi scheme.

But we cannot deny that it is the government that will take action on the people who have made so many people suffer this great loss

Quote from: Crypt0Gore on November 24, 2022, 01:22:11 PM

I know this is a good opportunity for crypto investors, altcoins price are extremely lower, something we've seen in the past five years ago? But still I don't like how all this happened. I was expecting a big crash but not from big crypto companies themselves, all my focus was on the war and inflation.

I don't even see this as an advantage other than a warning that the current cheapness won't guarantee a profit on a later bull run, except for big coins like BTC, ETH, BNB can't mention anything else

Luffygroove

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I believe it's a result of a number of setbacks in recent years rather than just FTX alone. It's similar to an iceberg forced to the surface by the FTX catastrophe. Right now, it appears like all eyes are on the cryptocurrency world, and it's bad. The government, in my opinion, has always viewed cryptocurrencies as a danger, but I don't believe they still do. They already know that cryptocurrency is favorable and has grown into a significant industry. They might have a fresh approach to dealing with the issues, and we could compromise for each interest.

I think that might be a knife with two sides. The fact that so many individuals are becoming more aware of crypto is really advantageous for the development of the crypto sphere. I believe it is time for us to make a better shift. But it's also bad for us because it generated a market earthquake, which I think will pass quickly. Hopefully, we can weather this storm.

wxa7115

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Quote from: Kelvinid on November 24, 2022, 07:52:22 PM

Quote from: vanesha on November 24, 2022, 01:25:51 PM

it won't be good for the long term of crypto. they will think crypto is just a scam because the exchange to exchange it for real money where FTX is a big exchange actually disappeared because of the big theft. We used to know crypto 2017 had the same stable exchange but now when they have disappeared crypto is difficult to grow better.

People are right that the crypto market is full of scams (exchanges and projects). It really affects the trust of new investors and the community.
But this is what I say, never take these issues seriously, invest the amount that we can afford to lose, and most of all, invest only in those projects that we know can be trusted like Bitcoin and ETH.

And the last thing is that use exchanges for trade only, not as storage then you can say you are safe.

It is often said that we need to invest an amount of money we can afford to lose, but we need to be honest no one invest in anything with the idea to lose their money, and when we are talking about an amount of money that is significant to you no one can afford to lose it either.

It is because of this that we need to be as careful as we can be when it comes to the assets in which we invest, as a single mistake can be enough to wipe out your account, and all the time, effort and energy that went into saving that money and becoming a good investor will be wasted.

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Quote from: vanesha on November 24, 2022, 01:25:51 PM

it won't be good for the long term of crypto. they will think crypto is just a scam because the exchange to exchange it for real money where FTX is a big exchange actually disappeared because of the big theft. We used to know crypto 2017 had the same stable exchange but now when they have disappeared crypto is difficult to grow better.

People are right that the crypto market is full of scams (exchanges and projects). It really affects the trust of new investors and the community.
But this is what I say, never take these issues seriously, invest the amount that we can afford to lose, and most of all, invest only in those projects that we know can be trusted like Bitcoin and ETH.

And the last thing is that use exchanges for trade only, not as storage then you can say you are safe.

vanesha

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it won't be good for the long term of crypto. they will think crypto is just a scam because the exchange to exchange it for real money where FTX is a big exchange actually disappeared because of the big theft. We used to know crypto 2017 had the same stable exchange but now when they have disappeared crypto is difficult to grow better.

Crypt0Gore

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It's not helping crypto at all, regulation will be more strict and new investors will keep believing that crypto is a big giant Ponzi scheme.

I know this is a good opportunity for crypto investors, altcoins price are extremely lower, something we've seen in the past five years ago? But still I don't like how all this happened. I was expecting a big crash but not from big crypto companies themselves, all my focus was on the war and inflation.

albon

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Quote from: Abiky on November 23, 2022, 05:43:25 PM

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.

Indeed, the collapse of the FTX platform affected the destabilization of the bear crypto market and gave the market a severe blow after the collapse of the Luna and after the huge losses of investors in it. Now the FTT coin collapsed and many companies followed it into bankruptcy. I think that the Solana coin will face the same fate in the near future, so we must be careful. And I see that what led to the exacerbation of the FTX platform crisis is the Binance exchange after it withdrew from its acquisition deal. This crisis was a blow to the investors’ neck, and I hope that they learned this harsh lesson so that they do not fall into such a crisis again.

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FOCUS

Quote from: taufik123 on November 24, 2022, 10:53:54 AM

Quote from: Yogee on November 24, 2022, 10:31:25 AM

Quote from: Wahyuihib on November 23, 2022, 07:21:49 PM

In my opinion, what the ftx exchange experienced was also experienced by binance when it was hacked some time ago. But everything has been handled properly. Hopefully what is experienced by FTX will be resolved soon and security technology will be improved for the convenience of its users

Apples and Oranges.

I don't think you are familiar with what happened to FTX prior to making that post. The cause of collapse wasn't because of a hack or poor security but the mishandling or mismanagement of customer's funds. At least that's what's being told but there could be more that's not yet revealed to the public.

At the start of the news, the collapse of FTX was indeed due to the mishandling of FTX user funds and made FTX no longer trusted. But as the problems faced by FTX went on and SBF's attitude did not give a sorry response, eventually news continued to develop and news about the FTX hack as the cause of FTX's collapse grew stronger and was claimed to be the main problem. it's just an issue made up to avoid hatred for the founder of FTX and for FTX itself.

The collapse of FTX has an impact on public distrust of centralized exchanges because the risk of losing assets is very large. But I don't think this will last long term. The trust of crypto users will return if a centralized exchange provides security guarantees for investor assets. this is a new history for crypto about the collapse of extreme centralized exchanges.

Yep, I also think that there are some distrust against centralized exchange now because of what happened to FTX. Imagine on of the biggest exchange got bankrupt in less than a week, I'm pretty sure it would be a terror experience to the centralized exchange users. I saw a trend chart of people who are putting their funds on non-custodial wallets which is an uptrend and I do think it is expected since there are influx of people who don't want to have the same experience with the FTX victims. It's a hard lesson for the victims and this lesson will surely be remember by everyone. Never trust a centralized platform especially if they hold something valuable. The effect will not last long but the lesson will be there forever.

taufik123

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Quote from: Yogee on November 24, 2022, 10:31:25 AM

Quote from: Wahyuihib on November 23, 2022, 07:21:49 PM

In my opinion, what the ftx exchange experienced was also experienced by binance when it was hacked some time ago. But everything has been handled properly. Hopefully what is experienced by FTX will be resolved soon and security technology will be improved for the convenience of its users

Apples and Oranges.

I don't think you are familiar with what happened to FTX prior to making that post. The cause of collapse wasn't because of a hack or poor security but the mishandling or mismanagement of customer's funds. At least that's what's being told but there could be more that's not yet revealed to the public.

At the start of the news, the collapse of FTX was indeed due to the mishandling of FTX user funds and made FTX no longer trusted. But as the problems faced by FTX went on and SBF's attitude did not give a sorry response, eventually news continued to develop and news about the FTX hack as the cause of FTX's collapse grew stronger and was claimed to be the main problem. it's just an issue made up to avoid hatred for the founder of FTX and for FTX itself.

The collapse of FTX has an impact on public distrust of centralized exchanges because the risk of losing assets is very large. But I don't think this will last long term. The trust of crypto users will return if a centralized exchange provides security guarantees for investor assets. this is a new history for crypto about the collapse of extreme centralized exchanges.

Yogee

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Good overall for those who have no problem with regulations and would still trade or keep funds on CEX after what happened. The same people asking for proof of liquidity instead of moving their funds from exchange to their custodial wallets.

Quote from: Wahyuihib on November 23, 2022, 07:21:49 PM

In my opinion, what the ftx exchange experienced was also experienced by binance when it was hacked some time ago. But everything has been handled properly. Hopefully what is experienced by FTX will be resolved soon and security technology will be improved for the convenience of its users

Apples and Oranges.

I don't think you are familiar with what happened to FTX prior to making that post. The cause of collapse wasn't because of a hack or poor security but the mishandling or mismanagement of customer's funds. At least that's what's being told but there could be more that's not yet revealed to the public.

vv181

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Quote from: Abiky on November 23, 2022, 05:43:25 PM

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).

It actually depends on what kind of regulation. If more and more people choose to have self-custody, then it is good since, in a truly decentralized coin, it will wholly benefit the user itself. So, the kind of regulation that isn't specifically attempting to harshly control the user-side interaction with cryptocurrency, it won't be too concerning.

The problem is, IIRC, there was a regulation attempt where crypto wallet developers are forced to implement an address verification mechanism that will be tied to personally identifiable information. I forgot the exact issue, but I'm sure at some point it has been talked about. With that in mind, then surely this kind of draconian regulation will harm crypto, especially those who do not have strong decentralized roots community.

Topic: FTX collapse: Good or bad for crypto in the long run? - page 6. (Read 1022 times)