Several VC ventures and crypto exchanges revealed having exposure to FTX. Jesse Powell, the CEO of Kraken, said Kraken had only about 9,000 FTT tokens. He points out that the crypto industry has its toughest times and needs to change.
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No one expected it, but here we are. FTX, one of the largest crypto exchanges in the world, collapsed, wiping out billions of dollars from the market. As a result, the total crypto market fell to levels not seen since early 2021. Clearly, the collapse of FTX drew the whole market with it, contributing to more than $200 billion being wiped out in a matter of days.
total crypto market cap chart, source: coinmarketcap.com
The recent event is one of the worst since crypto was created, as millions of customers cannot access their funds on the FTX exchange. Moreover, investors in FTT tokens lost billions. This caught the attention of the whole world, where Jesse Powell has some good points.
FTX office yesterday vs today #ftx #ftt #binance pic.twitter.com/0Zk7U4NIvm
— Investro.com (@investrocom) November 9, 2022
He praises people from the crypto industry, saying they are smart, passionate, open-minded and welcoming individuals with genuine humanitarian interests at heart. Powell says we will get through it together, but this is a massive setback.
“Our good, trusting nature makes us easy targets for con artists. Some even tell us straight up that they’re here for profits, not crypto, and we praise them for their honesty. Yet we’re surprised when they turn out to be who they said they are. We need to raise our standards,” he said in a tweet.
Powell claims this is not about “aiming high and missing.” Rather it’s about recklessness, hubris, self-interest, greed, and sociopathy in decision-making, which is what causes enormous risks. This industry has progressed a lot in the last decade, but these kinds of events are harsh setbacks.
“The last few months have been absolutely brutal. Even people who should have known better got rekt. More business failures are sure to come as the contagion spreads. Beyond the industry, lives are destroyed. I pray that we don’t lose our people, like we did in the wake of Gox,” said Powell.
There are more points toward lawmakers and regulators, who should also have some accountability. They are the ones who allowed the business to expand globally. Powell shows gratitude, claiming Kraken wasn’t exposed to FTX or any other recent disasters.
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He vouches for the crypto industry, motivating people to take a responsible and humanitarian approach to protect crypto. The collapse of FTX, along with other colossal crypto businesses, is a huge stab in the back for most investors. However, it is not necessarily the end, as new opportunities will arise when this turmoil ends.
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