Charles Hoskinson, founder of Cardano (ADA), spoke on his YouTube channel on November 12. He notably discussed the case of FTX and the fallout of its bankruptcy on the crypto industry. In this live video, he warns investors about other consequences of the fall of this crypto exchange.
Crypto: Is FTX causing its own downfall?
According to Hoskinson, FTX’s downfall was due to internal issues. To believe that the crypto-stock market is at the origin of its own fall. Indeed, in his video, Hoskinson says that FTX is not a failure of the crypto itself, but of a faulty and centralized infrastructure around it.
“Crypto has not failed. People have failed. People in a position of trust. he says.
Indeed, he pointed out that it was unwise for users to have placed their money in a centralized crypto exchange. It was a bad idea, he says, even though we like to believe in the principles and potential of cryptocurrency.
” This is the very industry that we are trying to get rid of with the help of cryptos. Unfortunately, this will now be confused. There is a very strong possibility that the fallout from this will be new legislation, hopefully decent legislation. However, there is a good chance that this is not the case.adds Hoskinson.
He thus warns investors of new regulations, which will probably be quite severe, for other crypto companies.
Will crypto-exchanges have to submit to new regulations?
Based on Hoskinson’s words, there’s a good chance that’s the case. The bankruptcy of FTX has indeed given a bad image to other platforms. This has forced most of them to prove their liquidity to users. The case of the Bankman-Fried platform will likely wake up lawmakers to pass tougher new legislation that crypto companies will have to abide by. According to the founder of Cardano (ADA), this is the consequence when inadequate people rise to positions of power and trust. This creates cascading and catastrophic damage.
” This is just the tip of the iceberg. If you look at the financial relationships that FTX had, as we go down the list, it can create a cascade of insolvencies and unfortunately the crypto doesn’t get a bailout, but our competitors do…” he said.
Charles Hoskinson then brought a small positive atmosphere to these spectators by saying:
” Now, I believe this is not going to kill the crypto. I believe our industry will be much stronger going forward, and I believe our best days are still ahead of us…”
He adds that the FTX situation could change the way cryptos work in the United States. He fears that wallets that do not offer custody will no longer be allowed in the country.
” We We could envision a world where every crypto except bitcoin is considered a security and forced to comply with onerous regulations that will deprive them of liquidity.he says.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
