FTX downfall may result in something better for the Defi & P2P crypto spot market
Experts believe that increasing panic & degrading trust among crypto investors over the centralized crypto exchanges may result in better outcomes for the future of the crypto industry for the real & practical operations based sector.
As we know, the FTX crypto exchange started to face fund & user outflow in the early phase of November 2022. Due to the mismanagement of the user’s fund, FTX faced a liquidity crisis situation on its platform and finally filed for bankruptcy in a US district court under chapter 11. The whole incident degraded the trust of the crypto customers in centralised crypto companies.
Experts believe that the current situation is not favourable to all those crypto businesses which are based on impractical operations like options trading, derivative tradings, centralised Yield & Staking programs, and digital assets backed by digital assets like GBTC, Ethereum Trust, etc.
Usually, such types of centralised services remain attractive among small & big crypto investors because of their corresponding advantages. But now the situation has been changed because crypto investors are not going to trust such centralised platforms at a big level because such rypto investment & trading activities don’t work on real operations, like spot trading.
Grayscale-like big companies, which provide crypto assets backed centralised digital assets trading, are also facing problems because of panic among the crypto Investors. In response, Grayscale officially talked about these things to ensure the safety of the GBTC & other similar assets’ traders & reduce panic of clients.
Panic among the crypto investors can be seen against those crypto assets which are pegged by bitcoin. For example, wBTC is a bitcoin-pegged Bitcoin that aims to provide multiple crypto services with the use of pegged BTC funds, which usually remains not possible with a direct Bitcoin network because of the unavailability of the smart contract feature in Bitcoin blockchain network.
Yes, they are sitting there in physical vaults collecting dust — insured, segregated, regulated
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If a merchant burns 50K WBTC we will release 50K BTC
Stop the #WBTC FUD and fake newsChen Fang (@chenbfang) November 25, 2022
Researchers believe that crypto investors will now choose spot, P2P crypto trading & also trusted Defi trade platforms over centralised platforms.
Read also: Many US state agencies are investigating multiple crypto companies
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