The current bitcoin price as of the time of writing is $16,249.29. The volatile nature of bitcoin and other constant collapses of unicorns like Luna and now FTX has been one of the core reasons most governments are scared to back crypto.
Our focus is on something other than bitcoin but FTX, a shining player in the crypto market.
FTX – The Story
Alameda Research, a holding company, was supposed to back FTX coin FTT but research into the company trading shows the holding company did not have such funds, and this was like a house standing on cards.
Bankman-Fried, the CEO and founder of FTX, tried to assuage the customer’s fear while trying to calm the market that everything was fine. CZ, CEO of Binance with a large holding of FTT, decided to sell out at about the same time.
It created more panic, and a token selling at $24 dropped to $3, a dip that sent the company to block withdrawers, and this was the last straw.
CZ VS Bankman-Fried – The Game of Thrones
The move by Cz is a checkmate. Should such a move be allowed in a decentralized system with many people’s funds wiped away by some super-rich billionaires?
CZ, one of the earliest backers of the FTX, Binance held on to the coin until the right moment when it was in a precarious situation and dumped just in time to cash out and bring the company down.
Bankman has come out to say he believes his competitor was a significant factor in their downfall.
Cz now holds the number one spot as the biggest and most secure platform for trading.
It outweighs the combination of Coinbase, FTX, Kraken, OKX, Bitfinex, and Huobi.
The Fear – Crypto Lapses
Bankman, who lost more than 90% of his net worth in 24hrs, shows how easily the market can sway, while many still believe trading in crypto is a risk and a get-rich-quick as you can be an overnight billionaire but also broke by daybreak.
Is it time to Regulate?
The call for market regulation is getting louder as the fears have increased over time as to who to hold when issues like this happen and how people get back their funds.
Luna comes to mind, and the coin was switched from Luna to Luna classic without recourse to the user, who did not even know why.
Decentralized Vs. Centralized
While it is still a fact that crypto will not fade, it must evolve, as what is obtainable is no longer ok.
The time of the wide, wide west must slowly fade to usher something more secure and balanced, the call for tokens to be backed by real value, not some vague, unattainable concept that could be more reliable.
Conclusion
While we are still gathering the pieces of the near collapse of a big giant, everyone should be more careful about what they trade and how they invest.
The market is still unregulated, and your entire retirement can go down the drain because of moves beyond your scope or power.
To learn how to secure your wallet from hackers, check out this article.
