Blockchain didn’t fail, says Pantera’s CEO on FTX collapse

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Pantera Capital’s CEO says FTX’s collapse was not attributable to blockchain failure.
In a letter to traders, Dan Morehead mentioned there’s a want for trustless techniques within the ecosystem.
Business within the blockchain area is shifting again to secure entities, Morehead added.

Blockchain shouldn’t be blamed for FTX’s collapse

Cryptocurrency alternate FTX collapsed in November following the mismanagement of buyer funds by Sam Bankman-Fried and his executives. Since then, the information of the collapse has dominated headlines, with regulators and legislatures within the United States at the moment speaking about one of the best ways to manage the market.

However, whereas commenting on the occasion, Pantera Capital’s CEO, Dan Morehead, mentioned FTX’s collapse doesn’t imply that blockchain know-how has failed.

In a letter to investors a number of days in the past, Morehead mentioned blockchain didn’t fail. He added that there are regulated entities within the cryptocurrency area which can be nonetheless working. He mentioned;

“There are exchanges like Coinbase, Kraken, and Bitstamp that, when a client sends money to them, they just put it in a bank. The solution is pretty straightforward. The narrative that blockchain skeptics and some regulators and politicians are pumping out misses the point. The collapse of FTX had nothing to do with blockchain technology. It’s not crypto that failed. Bitcoin and all the other protocols worked perfectly.”

In addition to centralised crypto alternate, Morehead added that decentralised protocols are nonetheless working wonderful. The Pantera boss pointed towards decentralised exchanges like Uniswap, 0x, 1inch, Balancer and Dodo, stating that they proceed to work wonderful.

Safe entities at the moment are attracting companies within the area

Morehead added that enterprise within the cryptocurrency area is now going to secure and safe firms. Cryptocurrency firms have to be audited to make sure that their funds are wonderful. The Pantera Capital CEO mentioned;

“Regulated, transparent, onshore, and/or audited exchanges are seeing a dramatic increase in market share. This is essentially getting back the customers who fled to offshore exchanges for more assets/potentially unregistered securities offered to trade, more leverage, and lower fees. Since October, the market share of exchanges like Coinbase, Kraken, Upbit, and Bitstamp has increased 30 percentage points.”

Morehead added that he hopes the pattern continues as that might guarantee the expansion of the broader cryptocurrency market.