DeFi Chain co-founder assesses FTX collapse. According to Julian Hosp, the founder of the decentralized currency company Defi Chain, the collapse of the crypto exchange FTX and the domino effect it had may rekindle interest in decentralized currency (defi) and related products. Hosp, however, acknowledged that the dramatic fallout of crypto exchanges is also encouraging regulators to take more stringent measures when dealing with crypto companies. Nonprofits take center stage.
While the massive collapse of the crypto exchange FTX and the ensuing chaos may have made the regulators more desperate, experts such as Defi Chain’s Julian Hosp believe that the lack of trust is emanating from the industry. results can rekindle user interest in decentralized finance (defi) and related products. . For those who still believe in the value proposition of cryptocurrency – a viable alternative to centralized money – Hosp said that those can move into self-control. According to a report by Bitcoin.com, many users – who seem to be talking about the excessive use of FTX and misuse of customer funds – have withdrawn their assets from the crypto exchange.
Is the DeFi Chain more reliable?
In some cases, a high number of political requests have seen changes (including FTX before it collapsed) struggle or fail to process them in time. In contrast, defi platforms such as Uniswap and Defi Chain have seen their trading costs increase over the same period. For example, Uniswap posted a tweet on November 11. 14 which showed that the number of daily wallets operating on the Defi platform has increased to 55,550, a new record. The tweet may suggest that the predictions of Hosp and other crypto experts have already come true.
Meanwhile, in a written response to a question from Bitcoin.com News, Hosp said that the ongoing FTX-related events have effectively deterred potential users.
“Trust is shaken at the moment. While existing crypto users are more likely to move to self-custody and into Defi, new investors will wait on the sidelines until the dust has completely settled, which may take a little while,” Hosp explained.
Going forward, Hosp, founder of Defi Chain and U-Zyn Chua, said he expects to see “land price changes in the next few months.” According to the CEO, this behavior will change only “when everything heals”.
The FTX domino effect
Although the crypto market has gone through many storms before this, some crypto experts have warned that the destruction of FTX could still cause major environmental damage. They tell stories of users and some changes having problems when they try to remove. When asked if such an accident could have been avoided, Hosp said it would largely depend on the magnitude of the secondary consequences of the FTX/Alameda failure.
“It’s hard to find out now. If the effects are small, the affected platforms can find a remedy on their own (as shown by Huobi’s recent announcement of an 18 million USD hole) or other players such as Binance can step in . However, if it starts to look like a bad fire, we can only prepare for that effect,” said Hosp. Like his peers, Hosp said he believes the fallout from the FTX saga is emboldening regulators and giving them reason to crack down on the crypto industry.
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