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Pantera Capital CEO Says FTX Collapse Was Not Caused By Blockchain Failure.
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In a letter to investors, Dan Morehead said there is a need for trustworthy systems in the ecosystem.
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Morehead said that business in the blockchain space is moving back to secure entities.
Blockchain should not be blamed for the collapse of FTX
cryptocurrency exchange ftx collapsed In November following mismanagement of client funds by Sam Bankman-Fried and his executives. Since then, news of the collapse has been making headlines, with regulators and legislatures in the United States talking about how best to regulate the market at present.
However, commenting on the incident, Dan Morehead, CEO of Pantera Capital, said that the collapse of FTX does not mean that blockchain technology has failed.
in letter to investors A few days ago, Morehead said that blockchain has not failed. He added that there are regulated entities in the cryptocurrency space that are still in the works. He said;
“There are exchanges like Coinbase, Kraken, and Bitstamp, when a customer sends them money, they put it in the bank. The solution is pretty straightforward. The story of blockchain skeptics and some regulators and politicians misses the point. FTX’s The collapse had nothing to do with blockchain technology. It’s not crypto that failed. Bitcoin and all other protocols worked perfectly.”
In addition to centralized crypto exchanges, Morehead said that decentralized protocols are still working fine. The Pantera boss pointed to decentralized exchanges like Uniswap, 0x, 1inch, Balancer and Dodo, saying they continue to do just fine.
Secure institutions are now attracting businesses to the area
Morehead said that business in the cryptocurrency space is now shifting to companies that are safe and secure. Cryptocurrency companies need to be audited to make sure their finances are in order. The CEO of Pantera Capital said;
“Regulated, transparent, onshore and/or audited exchanges are seeing a dramatic increase in market share. This is essentially getting back clients who trade more assets/potentially unregistered securities, more leverage and less were fled to offshore exchanges for fees. Like the market share of exchanges since October coinbaseKraken, Upbit and Bitstamp are up 30 percentage points each.
Morehead added that he expects the trend to continue as it will ensure growth for the broader cryptocurrency market.