• The FTX debacle caused shockwaves in the crypto space that led to the downfall of some crypto firms and prices crashed.
• Bitrue Chief Strategy Officer, Robert Quartly-Janeiro shared his thoughts on how crypto exchanges have been faring in the wake of FTX’s decline, and how Bitrue is working to regain user trust.
• Binance’s deal for SEBC helped calm things down and reduce speculation on who’ll be next. Exchanges are operating more cautiously with de-risking and consolidation likely to continue.
The Collapse of FTX
The collapse of cryptocurrency exchange FTX sent shockwaves throughout the crypto space, triggering the downfall of some crypto firms and prices crashing along with it.
Effects on Crypto Exchanges
Bitcoinist caught up with Bitrue’s Chief Strategy Officer, Robert Quartly-Janeiro who shared his thoughts on how other crypto exchanges have been faring in the wake of this incident. He mentioned that there was a lot of guesswork about which firm would be next due to trading volumes falling and cost of debt rising but Binance’s deal for SEBC (Sakura Exchange Bitcoin) demonstrated that major deals were still being struck so things calmed down eventually.
Regaining User Trust
Robert also spoke about how Bitrue is working towards regaining user trust after this event by being more frugal and cautious when it comes to operations. He believes that consolidation will continue due to economies of scale, trust, and market moves.
FTX Insider Story
Robert mentioned reading an insider story in the Financial Times on the final days at FTX not too long ago which made for grim reading as they were operating way outside their remit through Alameda trading which eventually led them into trouble. He expressed sympathy for users who lost money as well as staff who had no idea what was going on or what kind of implications it would have for their careers and finances.
In conclusion, despite being a difficult situation, many exchanges are taking steps to rebuild user confidence by operating cautiously with de-risking strategies leading to potential consolidation in the future.