FTX Could Just Be The Start
With so much drama over the last year in the crypto ecosystem, it was not entirely shocking to see one of the big dominoes fall with FTX. I know that projects like Terra Luna and other DeFi giants have went down with catastrophic effect, but additionally having huge centralized exchanges like FTX and now BlockFi filing for bankruptcy, we may see the whole ecosystem drastically change.
I have seen rumors that Coinbase and Binance will be next to topple and whether or not they do, the fact still stands that the crypto ecosystem as we know it today will be undergoing a massive facelift.
It is very possible that this is all for the best and that what is meant to happen will eventually happen for the space as I believe that CEX's are not the true purpose of crypto, but seeing it happen so suddenly could rock the confidence of users and investors for years to come.
How Does Mt. Gox Compare?
I wasn't involved with Bitcoin during the Mt. Gox collapse, but from what I 've read, this was something that wouldn't entirely have shocked me. It was an exchange running on a website that was meant to be a forum on a game. This time, the exchanges that are collapsing are multi-billion dollar corporations that have built their brands on being a safe place to invest in and transact on... That feels much more serious (though of course both are terrible).
Where Do We Go?
I still think that DeFi is the future, but we have also seen countless DeFi projects go up in flames with corruption, hacks, etc. The future of cryptocurrency will have to focus on ensuring peace of mind through smart contracts and transparency. Where there are human beings involved, there is always the chance of corruption, manipulation or just simply errors being made. In the future, I believe we will see a ton of automation and a log of all transactions and TVL locked of the protocols we are investing in.
I don't know when that will be or what protocols will take the lead, but it is the only thing I can think of in terms of guaranteeing that cryptocurrency functions the way it is meant to.
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Who I am:
My name is Rob and I am a financial analyst with interests in cryptocurrency and blockchain. I have enjoyed my time thus far engaging with Web 3.0 and am looking to continue learning more and sharing what I learn through my experience.