FTX, the US-based crypto platform, succumbed to a liquidity crunch that rocked the crypto market in November, wiping nearly $200 billion (Rs 1,653,499 crore) off the market. The furious reaction of investors withdrawing money from digital assets has left several cryptocurrency companies breathless. This FTX debacle, though severe, must be seen as a “blessing in disguise,” according to the Indian Web3 builder, which has begun pushing for a more elaborate financial structure around the cryptocurrency, which would cut its oft-criticized volatility factor .
“Companies that don’t have a solid foundation and strong investments will be left behind,” said Tarusha Mittal, COO and co-founder of UniFarm, a Web3-focused app store, Dapps and collective farming and staking protocol.
In conversation with Gadgets 360, Mittal said encrypted player Now more than ever, investors need to realize that Web3 is all about decentralization.
“From a macro perspective, the FTX crash is good for the industry. FTX Crash It’s a great reminder that cryptocurrencies are all about removing centralized institutions and regaining financial responsibility and independence,” Mittal noted.
Web3 It is commonly interpreted as the upcoming next-generation Internet as we know it today. Web3 will be based on a blockchain that is not controlled by a central authority, rather than servers and large tech companies, thus offering complete freedom and an irreversible record of all processes.
cryptocurrency, Metaverse, NFTswith Decentralized Finance (DeFi) – is a new technology that will be a special element of Web3.
Mahin Gupta, founder of digital wallet service provider Liminal, also weighed in on the FTX situation. A major event like this could drive the adoption of important Web3 tools that are available but not currently top of mind for investors, he said.
“Towards decentralized finance The key to learning the lessons from the FTX debacle early on is that industry players have a responsibility to build a safety net around user funds. Self-custodial or permissioned escrow services should be actively used to store digital assets that are fully controlled by the user, not the company,” Gupta told Gadgets 360.
Several cryptocurrency exchanges appear to have lost active users after FTX declared bankruptcy.
From India and other countries, established exchanges such as Binance, KuCoin and Giottius conduct an audit Their reserves to ensure clients that their funds are safe in case of urgent bulk withdrawals.
Industry leaders still believe that the crypto community is ready to enter next year with more transparency than when 2022 began.
“The industry has made significant technological advancements to improve transparency and security. The downturn in cryptocurrency and stock markets is the result of various macroeconomic factors affecting investor sentiment. As we enter the new year, it is Great opportunity for crypto investors to review their portfolios and strategize investments and security solutions for better outcomes,” Edul Patel, CEO and co-founder of crypto investment firm Mudrex, told Gadgets 360.
Cryptocurrency is an unregulated digital currency, not legal tender, and there are market risks. The information presented herein is not intended to constitute and does not constitute financial advice, trading advice or any other advice or advice of any kind offered or endorsed by NDTV. NDTV is not responsible for any losses arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.