Topic: FTX collapse: Good or bad for crypto in the long run? - page 7. (Read 1022 times)

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.

Previously, many years ago we had Mt. Gox and beyond cryptocurrency, we had Golman Sach collapse too. They did not stop the world or financial or cryptocurrency market forever.

Blackswan events occur mostly at start and nearly ending of bear market. Terra can be a start, FTX can be an ending black swan events of this bear market.

Advantage is it will require governments to do more regulations. They can not deny to govern their societies including crypto. 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.

It's a shame that this event happened when the crypto or exchange was large enough with its market capacity, many people were harmed in this event that they would not be able to claim their money back, so why is the government tightening rules if something like this doesn't exist any compensation. I myself am still optimistic that the crypto world will continue to grow for the better even though there are still many scammers who take advantage of it.

The fact that it collapsed was really bad. I know some people will say that it's good to get rid of rotten apples, and yeah they are sort of right, but replacing them with tougher regulations won't be as fun as people think.

And everywhere i read about it, ignorant people mock and ridicule cryptos now being a scam. Uneducated people get invited to talk in news to tell that prices of cryptos were based on nothing. Those who mock loudest have a big cheering audience of followers and those will get wrong data what really happened.

The underlying issues how ever are worse, i would compare it to banks and say that if they mess up, they get bailed out. In fact Binance would probably bailed them out if what they did wasn't so messed up.

But i really even can't because to my knowledge even failed banks that got bailed out haven't messed up this way. We have just funded most unprofessional company with billions of dollars. Incompetence and carelessness of Sam was surreal in hindsight, they had no safe measures and it was huge FU to any kind of risk analysis. And new stuff that gets revealed like a billion dollar loan to Sam doesn't really help the situation. Even their company's psychiatrist is leaking out info that makes me think that they did even hire such incompetence on that sector that no one else would.

Doesnt matter, scam is scam.

This incident may teach not to trust service providers that want you to trust them with your balance, and not to trust some random blockchain. So it might help people to remember what were the strengths of blockchain-based finance instead of following the next best soldier of fortune.

Of course it is a good step in the long run. Thinking otherwise don't even make sense. The long the scam runs, the bigger it gets and then more people will get harmed. These scams/ponzi schemes will always go down eventually. Ideally they shouldn't exist in the first place but we don't live in an ideal world so there will always be another ponzi scheme in line and they will go down too.

The worst part is, no matter how protected you think you are, these scam exchanges affect you too if you own any crypto whether in a cold wallet or on some other exchange.

We have seen this problem occur several times in the world of cryptocurrency, the reason is because no one can be trusted with people we know only online because they can do anything without anyone knowing except their own group.

The FTX collapse has affected the crypto world and we have seen how bloody all crypto has become, and 2022 will be the most bitter year because of the two events that have completely rocked Terra Luna and now FTX.

The advantage of FTX events is that it is like a filter where the developers who are not only experts but can be trusted and those who stick around are the ones who can be trusted, although we as investors must remain careful with all the bad possibilities that can occur, in the long run investors will understand every risk they will face and will not get caught up in their dirty game.

The disadvantage in the crypto world is that the government will suppress this so that it will make cryptocurrency even more regulated and every regulation will make crypto no longer purely decentralized but will be more centralized so that it will be no different from the digital currency issued by the government itself.

Myriad stories about FTX, will the government restrain or facilitate the growth of this revolutionary new technology? This is a question we will have to wait and see how things go over the next few years.

It is only good for crypto in the long run because without the collapse of FTX and later leaked information about their bad capital management especially parts from their customers. With this lesson, I am sure other exchanges will learn from it and be more carefully with their management as well as give more transparent reports to their customers.

Changes won't be done shortly but in the long run, as you asked, it will lead to high positive impacts for cryptocurrency users especially who use services from centralized exchanges.

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.

It surprise me that a major exchange is gone and I think it's just a matter of time before the others will. Who knows what will happen to these major exchanges but my question is why is it they always triggered after the bull run? Is it just a coincidence?

Seems like there's something controlling the market or so but whatever, their effect is just temporary to the community and it is somehow making the price to go down a bit so that investors will have a time to accumulate and wait for the bull run again.

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

There are bad and good sides already triggered by the incidents that happened with FTX

Good things
- People realized about storing their key in the cex was very dangerous caused by they can lose their money anytime. That's why massive migration happened for the liquidity from cex.
- It reveals how shady the exchange site and lending platforms were


Bad things
- it affects the movement of crypto market in long term and triggering the trust issue by investors to the crypto
- It was also making government to make intervention to the crypto with stricter regulation which is not good


As biden has called for more stricter regulation for crypto and it was giving more bad sides rather than good sides. FTX's case was actually bad for the long term run of crypto. It was hurting so many people caused by they were loosing their money.

I'll just say the good thought that I've got based on what has happened. In the long run, that will make everyone think that it's good to store their cryptos through the wallets where they can hold the private keys.

Unlike storing it on the exchanges like FTX, they have no control to the funds that they put there. So, anything can happen to it depending on what will happen to that exchanges.

What happened to FTX already affect the whole market right now but I don’t think long term effect will be the issue here because most of the project will adjust accordingly same thing with the investors.

Have you seen any FUD from previous hacks on other exchanges and issues with LUNA? None anymore and that means the market already move on and more ready to face the future. We are getting wiser now.

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.