The Crypto Community Responds To FTX Crash By Taking Back Control
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Even by crypto’s highest standards, the last few weeks have been some of the most painful that the industry has ever endured. What was formerly one of the world’s most respected and trusted cryptocurrency exchanges, FTX, collapsed into bankruptcy amid a rush by customers to get their savings out of the platform after rumors emerged that it was basically insolvent.
The result - thousands of crypto users once again out of pocket, to the tune of thousands of dollars in some cases.
To be sure, many crypto exchanges have failed many times in the past, but the sheer scale of mismanagement witnessed at FTX appears to be unprecedented. It owes its users billions of dollars, and those creditors have little hope of seeing it returned. As a result, many people have lost faith in crypto, resulting in heavy downward pressure on token prices.
Investors should realize however that crypto itself is not flawed, and its blockchains didn’t fail. Rather, the collapse of FTX was the result of human mismanagement, incompetence and, most likely, fraud. Investors’ losses could have been avoided, and would have if they had followed one of crypto’s best practices.
One thing that’s often forgotten by many of its users is that cryptocurrency is designed as a bearer asset. In other words, users are required to safeguard their funds by themselves. It’s solely their responsibility. There are no banks in crypto, there is no insurance and no comeback if something goes wrong. Users have to remember their private seed phrase and keep it somewhere safe. If they don’t, they risk never being able to access their
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