The collapse of FTX, one of the largest exchanges in the world, shocked the entire cryptocurrency community. In the preceding week, the FTX value was projected to be $0, and the business declared bankruptcy. The entire crypto market crashed after a string of stunning developments, including Binance’s plan to purchase FTX before abandoning the agreement. Many investors withdrew from further action as a result of the incident, which severely damaged their confidence in cryptocurrency and its future.
FTX drama leads to Cryptocurrency market crash
The majority of those harmed by the FTX crash would benefit from switching to self-custody wallets in the future. Most ordinary investors need to be aware of the extent of the centralization issue as they struggle to remove their cryptocurrency from centralised exchanges. Which asset are you putting your wealth under? It doesn’t end with individual investors parking their money in hot or cold wallets; it just takes on a new shape.
Tether, which is frequently praised as the foundation of the cryptocurrency ecosystem, has faced criticism on numerous occasions for allegedly lacking the assets necessary to support the deposits made by its users. If this were the case, a bank run would result in Tether being unable to repay these deposits, which would cause the entire system to collapse. Of course, USD Coin, another Circle-powered option, is your next choice. It was a dependable choice for experienced crypto users until Circle itself decided to freeze the USDC linked to the Tornado Cash protocol, once again bringing to light the perils of centralization.
Entering the crypto market: is now the right time?
Some cryptologists think the true effects will become apparent in the following weeks. For instance, forecasts indicate that Bitcoin could decline by 22% to $13,000. The impact of the FTX events can be quite detrimental to the crypto business in the short run. However, a lot of analysts think this won’t have a big long-term influence on the bitcoin industry. It is evident that there is less and less trust in the cryptocurrency sector. Investors may not have faith in cryptocurrencies for many years.
A few coins are still steady if you’re one of the investors that want to hold onto your cryptocurrency investments despite the recent developments. Calvaria, IMPT, and Dash 2 Trade are a few of the coins that are performing well right now and are worthwhile investments.
Even if the FTX crisis created a lot of issues for the crypto community and reduced market confidence, other coins are still making steady gains. The tokens that are now worth investing in include Dash 2 Trade, IMPT, and Calvaria. These, according to experts, will have a bright future; recent consistent growth during a time of crisis has proven this.