Bitcoin had its worst week in the next two years Bankruptcy of virtual currency exchange FTX Last week, can crypto prices recover this week? After that, I resigned. Alameda Research also failed last week.
FTX’s bankruptcy wiped out a good chunk of the cryptocurrency market. However, the three reasons listed below explain why the value of cryptocurrencies will recover.
reinforce of core case for Decentralization
The troubled cryptocurrency exchange has revealed that FTX and its 130 subsidiaries have declared bankruptcy and were hacked just hours after CEO Sam Bankman-Fried stepped down. Crypto assets could be worth around $477 million, according to crypto risk management firm Elliptic. Additionally, his FTX competitors like Crypto.com are not going to face liquidity issues after the exchange accidentally transferred $400 million of him to the wrong wallet on Nov. 13. I had to reassure worried investors.
Crypto_com CEO claims he “accidentally” sent $400 million in eth to the wrong wallet.
He is lying or incompetent. https://t.co/hWXvPqBime
— Coffeezilla (@coffeebreak_YT) November 13, 2022
The collapse of FTX has sparked a debate between DeFi (decentralized finance) and CeFi (centralized finance). Many experts believe he prefers DeFi in terms of transparency and accuracy, especially considering his two DeFi lenders, Celsius and Voyager, which went out of business earlier this year.
crypto funds @ARK36_AIF Ant Paloian appointed Executive Director and Chief Executive Officer
—FundsTech (@FundsTech) September 7, 2022
Anto Paroian, CEO and Executive Director of cryptocurrency hedge fund ARK36, explained the basic concepts of cryptocurrencies. He said the goal is to eliminate the need for trust through decentralization. This suggests that decentralized exchanges will become more prevalent in the future and bring transparency to the sector. As a result, the price of crypto assets will rise.
Crypto Prices Recovering As Markets participant intention examination self management
Industry experts are encouraging crypto traders and investors to vault their crypto assets in light of the massive market uncertainty caused by the collapse of FTX.Nov 13, Binance CEO Changpeng “CZ” Zhao has urged the cryptocurrency community to use self-custody crypto wallets to store their cryptocurrencies. Zhao described self-custody as a “fundamental human right.” He recommended that investors start small to learn the technology and tools first.
— Krypton AI (@KryptonAi) November 14, 2022
On November 10th and 11th, MicroStrategy Executive Chairman Michael Saylor spoke about the benefits of self-management in the current market environment. Thaler said self-control is necessary to stop influential people from gaining and abusing positions of power.
Thaler also argued that self-management is key to maintaining blockchain trust and security. As a result, market participants will seriously consider self-custody, and demand for crypto assets will increase. It suggests that the value of cryptocurrencies will recover as interest in self-custody grows.
regulation teeth upon of how, which teeth a good thing
FTX, one of the world’s largest cryptocurrency exchanges, has collapsed and is being called a truly shocking, implosion and meltdown. Additionally, the situation has raised concerns about the stability of the cryptocurrency at a time when Bitcoin is struggling. Safety Net will be unavailable to
according to Circle CEO Jeremy Allaire, FTX drop kicks off faster crypto regulation. In an interview, Allaire explained why the U.S. needs crypto regulation now, how dangerous offshore crypto businesses are, and how the FTX crash could prompt regulators and policy makers to step up. I talked about why I think
2/ Circle has no material exposure to FTX and Alameda. FTX has been a Circle Payment API customer for the past 18 months, providing the card and his ACH services for customer transactions. Circle’s crypto payment beta product uses FTX and other exchanges for BTC/ETH liquidity.
— Jeremy Allaire (@jerallaire) November 9, 2022
Furthermore, Changpeng Zhao, CEO of Binance, which founded the world’s largest cryptocurrency exchange, has advocated for regulatory clarity. Zhao told G20 leaders at a meeting in Bali:
“We need more regulatory clarity and regulatory sophistication in the crypto space.”
The Senate Agriculture Committee, which oversees the CFTC, proposed new legislation earlier this year. The bill will make the CFTC the primary regulator of the digital asset sector and strengthen its authority over crypto spot markets. Additionally, the law requires the trading company to register with her CFTC.
Crypto regulation could help the cryptocurrency market recover as it could increase investor confidence.
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