FTX collapsed last week causing a massive earthquake shaking the trillion-dollar crypto industry to its core. After filing for bankruptcy last week, the company has sealed its fate for destruction. HashCash Chief, Raj Chowdhury highlights that the mishandling of the assets by one of the largest industries has shaken investor confidence, which is why it is important to support strong projects and rebuild the crypto community.
FTX Collapse Causes Panic Among Investors
FTX was one of the largest crypto exchanges around the world after Binance, with millions of crypto investors that catered funds for institutions and startups. Being one of the trusted and credible exchanges, the collapse of the company has shaken the entire crypto industry along with investor confidence. Sam Bankman Fried, the thirty-year-old CEO of FTX was one of the important personas in the fintech industry with twenty-five billion dollar assets which vanished ever since the collapse. Backed by the BlackRock, and Sequoia capitals, FTX quickly gained popularity and acceptance in the crypto industry. However, a poor decision of lending billions of dollars to the crypto hedge fund Fried known as “Alameda” which bet on risky speculative assets and lost all the money brought down the company. The crypto risk management firm, Elliptic shares $473million worth of assets that were seized from FTX after the firm filed for bankruptcy.
Chief of HashCash Consultants, and blockchain maximalist, Mr. Raj Chowdhury asserts “The FTX insolvency has been catastrophic, triggering a domino effect across the entire crypto industry. It’s time to support crypto projects with strong potential suffering from a liquidity crisis. Let’s rebuild the crypto community and bring back the lost crypto investor confidence”.
After the collapse of FTX, various crypto enthusiasts are looking for ways to support vital crypto projects in the industry to develop rapidly. CEO of Binance Changpeng Zhao also known as CZ twitted that the firm is building an “industry recovery fund” to help potentially strong crypto projects suffering from a liquidity crisis. He further mentioned that no help will be lent to FTX or any fraud projects. The Crypto industry has always been controversial especially as it is not yet regulated, investors cannot trust the process. With the collapse of one of the trusted exchanges, the crypto industry is at the edge of losing investors, and every big company is making an effort to rebuild the community.
“The FTX collapse has plummeted the crypto prices with Bitcoin plummeting by 65%. The industry needs support in terms of liquidity to rebuild the loss”, concluded Chowdhury. He has previously highlighted the application of blockchain in the education industry and for patent claims,
Under Raj’s leadership, Hashcash has deployed its products in more than twenty-six countries, and six continents. These products include white-label crypto broker platforms for brokers, institutional investors, and crypto payment processors trending among retailers in the US. The firm expanding its development facilities in Dubai & ranked as the top blockchain development company by a tech research firm.
Cryptocurrency has gained massive popularity among investors and has evolved over the years. Due to the lack of regulations, several reports of scams and frauds make headlines every day. To power the future of the industry, it is essential to support the new strong crypto projects with liquidity flow.