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Cardano founder Charles Hoskinson has warned investors that more pain is coming from the recent collapse of cryptocurrency exchange FTX. He also said that the incident would attract more regulatory scrutiny.
Get your latest YouTube videos. In VideoHoskinson argued that the collapse of FTX was not a failure of the crypto itself, but rather the flawed and centralized infrastructure around the platform.
“Crypto didn’t fail. People failed. People in positions of trust. At the end of the day, as much as we like to believe in the principles of cryptocurrency, it’s all about people putting their money in centralized exchanges and allowing centralized businesses to do their jobs.” Something to do on behalf had to do with the delegating organizations,” he said.
He added that the FTX fallout could lead to increased scrutiny of the crypto industry. “There is a high probability that this will result in new legislation, hopefully decent legislation, but there is a strong likelihood that it will not.”
At first, me Video Last week, Hoskinson claimed that the fallout from crypto exchange FTX could be one of the last crises to hit the industry. But he added that as these events have effects on other ecosystem players, they are becoming more and more complex and harder to predict.
“I think this could be the bottom, one of the last ones to deal with it. It’s going to be difficult to predict how bad it will be, and it certainly could potentially be much worse. Such There aren’t many more firms that were like FTX or Alameda or the like, Three Arrows Capital, and so forth,” he said.
as informed of, FTX announced it filed for Chapter 11 bankruptcy in Delaware on Thursday, bringing an end to its desperate scramble for investors to repair its balance sheet. Notably, FTX US, the US branch of the crypto exchange, has also been included in the proceedings, despite claims by the former CEO that his US exchange was fine.
Michael Sailer expects more regulatory scrutiny
Notably, Hoskinson isn’t the only one predicting increased regulatory scrutiny. Michael Saylor, former CEO of MicroStrategy believes that The FTX fallout will certainly attract more regulatory scrutiny. However, he added that if regulators move too aggressively in response to the FTX explosion, it will hurt the industry.
However, bitcoin bulls argued that the major cryptocurrency and “a handful” of other coins would benefit from the collapse of FTX as it would eliminate thousands of worthless cryptocurrencies.