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

• Pantera Capital CEO says FTX demise was not caused by blockchain failure.

• In a letter to investors, Dan Morehead said the ecosystem needs a trustless system.

• Business in the blockchain space is returning to being a secure entity, Morehead added.

Blockchain shouldn’t be blamed for FTX’s collapse

cryptocurrency exchange FTX Collapse News of the collapse has dominated the headlines since November, following the mismanagement of customer funds by Sam Bankman-Fried and its executives, and U.S. regulators and Congress now question the best way to regulate the market. We are talking about

However, while commenting on the event, Pantera Capital CEO Dan Morehead said the collapse of FTX does not mean that blockchain technology has failed.

and letter to investors A few days ago, Morehead said blockchain has not failed. He added that there are still functioning regulated entities in the cryptocurrency space. He said;

Exchanges like Coinbase, Kraken and Bitstamp send money to banks when clients send money. , it doesn’t hit the mark.The FTX crash had nothing to do with blockchain technology.It wasn’t crypto that failed.Bitcoin and all other protocols worked perfectly.”

In addition to centralized crypto exchanges, Morehead added that decentralized protocols are still working fine. The Pantera boss pointed to decentralized exchanges such as Uniswap, 0x, 1inch, Balancer and Dodo and said they are still functioning normally.

Secure entities are now attracting business in space

Morehead added that business in the cryptocurrency space is now geared toward safe and secure companies. Cryptocurrency companies should be audited to ensure their finances are in order. Pantera Capital CEO said:

Regulated, transparent, onshore, and/or audited exchanges have seen a dramatic increase in market share. assets/potentially unregistered securities trading, seeking more leverage and lower fees to regain market share for exchanges such as: coin base, Kraken, Upbit and Bitstamp increased by 30%. “

Morehead added that he hopes the trend will continue to ensure growth for the broader cryptocurrency market.