FTX: The former chief economist of the IMF gives his opinion!

The unexpected collapse of FTX came as a shock to the crypto world. All players in the sector have also been affected from far or near by the fall of this empire of 32 billion dollars. It caused the bankruptcy of several crypto companies and led to other problems. But this collapse will not “kill” cryptocurrencies, according to the American economist and former chief economist of the IMF Kenneth Rogoff.

The problems caused by the fall of FTX are there, but will not make the crypto disappear

In an article written by him, Kenneth Rogoff discusses the latest crypto events. According to this American economist, the loss of confidence in the exchanges is undoubtedly the first negative impact of the fall of FTX. As the outburst of exchanges is one of the factors that increase the price of cryptocurrencies, this loss of confidence necessarily leads to a significant drop in prices.

After this drama, large investors, intermediaries and small crypto investors will certainly change their behavior. To regain their trust, again according to Rogoff, crypto companies will need to reassure them about safety and security issues.

These are serious issues affecting the world of cryptocurrencies. They even cause the bankruptcy of several exchange companies. But according to Kenneth Rogoff, these problems will not “kill” crypto.

Crypto must return to its decentralized roots

Centralized exchanges like FTX have made cryptocurrencies more convenient and accessible to everyone. Thanks to centralized exchanges, banking transactions as well as the use of Visa and MasterCard cards are possible. But these centralized exchanges have also made cryptocurrencies more vulnerable to attacks.

Kenneth Rogoff indeed shares theReview by Vitalik Buterin, founder of Ethereum. According to him, crypto needs to go back to its decentralized roots to avoid any vulnerability issues. The latter being one of the causes of the fall of FTX.

The collapse of FTX is shaking up the crypto world entirely. The fall in bitcoin and ethereum prices is proof of this. More problems may ensue and more drama could still arise, but banning cryptocurrencies is still an unlikely thing. To meditate…

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