Bogotá — When it is believed that the crypto winter is starting to subside and the market is starting to stabilize, Cryptocurrency platform FTX has filed for bankruptcy amid doubts about solvency, capital flight, and admitted that it may have more than a million creditors around the world.
The decline of FTX, valued at $32 billion, “has an infectious effect on the industry” and “we see affiliates facing their own liquidity crises and halting customer deposits and withdrawals. seriously undermining consumer confidence in the process.”, cryptocurrency expert James Edwards at Finder told Bloomberg Línea.
Camilo Rodríguez, crypto-asset investment advisor at CR Academia, admits in an interview with Bloomberg Línea that FTX’s decline has had a contagious effect. “market stage in which a major player in an industry falls and affects other companies because all markets are interconnected” and “all companies are interrelated”.
“The effect of this player’s fall creates a large secondary slingshot on the others.. There is still one last drop to confirm the end of this trend. Obviously the depth effect has yet to be discovered. How many companies were actually affected during this attack and this embezzlement?. Both things that happen in FTX are now revealing A domino effect on other small industries that have diversified their funds in such clearing houses it’s huge worldwide,” said Camilo Rodríguez.
Regarding the direct impact in Colombia, he explained: Of course, it is very difficult to know which companies are using FTX as a payment gateway.“but it will be so obvious and notorious that these companies do not make a statement, if they do not inform you in advance that some of their funds are located on such platforms, they can go bankrupt and even harm users in the long run.”.
“No Colombian companies have yet announced that they will use FTX as a payment gateway; again, Also, they may be hiding it because it creates a lack of trust on the part of the users.. Communicating that would be the most transparent, it depends on whether the company wants to tell its users or not.”
Esteban Villegas, founder of the Zulu digital dollar platform, told Bloomberg Línea that this was “absolutely a setback” and definitely a setback. will set the industry back “at least” two to three years in cryptocurrency adoption“but it’s just an impulse of what’s going to happen in the next five years”.
“You have to be very careful on the consumer side and choose the person you will work with very carefully. (…) We know that there are many companies that are specifically exposed to FTX. and it is very clear that in the next three to six months many companies around the world and especially in Latin America, they will quit the game. Since they are in the bankruptcy process, it has not been disclosed to the public yet, but it is clear that; exchange Y fintechs “Regulated companies are exposed to such risks and this will create problems for consumers.”
FTX and Colombia
After Brazil, Colombia would be the second Latin American country most affected by the decline of FTX, if its contribution to the monthly unique visitor percentage and participation in this traffic is taken into account. exchangeCoinGecko, according to the platform that tracks the price of cryptocurrencies.
“The report also revealed that Colombians represent 1.3% of monthly visitors. exchange, that’s the equivalent of about 62,900 Colombians each month”Edwards concluded.
According to the latest Finder Cryptocurrency Adoption Index figures, About 5.9 million Colombians held cryptocurrencies until the third quarter of 2022 before the FTX collapse.
“We will continue to see the domino effects of the collapse of FTX for a while,” said James Edwards, who believes the cryptocurrency ecosystem can witness in 2023. “Increased regulation as governments around the world seek to maintain financial stability while driving innovation.”
“The worst may be yet to come creationwarned of possible bankruptcy. It runs several other companies, including its parent company, Digital Currency Group (DCG), Grayscale Investments, and news outlet CoinDesk. According to reports, DCG is trying to raise funds to continue its operations. The lack of funding could lead to the liquidation of the Grayscale Bitcoin Trust (GBTC), putting significant downward pressure on the market.”, he pointed.
Effect “not 100% seen yet”
Camilo Rodríguez of CR Academia tells Bloomberg Línea that the fall of an actor who fell on “high liquidity return and money base betray everything ownersembezzlement from their users.”
“Here, the importance of decentralization becomes clear, and this The market is still very sensitive to the effects of an institutional player because people continue to use central exchange houses.. So the effect is exactly that people still need to learn how to use it walletsto keep your money away from the influence of third parties and to diversify your risk.”
Rodríguez also analyzes that the lost liquidity will not return to the market any time soon, and this will create difficulties for a new wave of investors to emerge.it could also undermine trust in this industry and therefore they will consider in more detail whether to invest money in the ecosystem.
“The effect of FTX has not yet been seen 100%, the number of companies involved is still unknown. While many have already accounted for losses and sought compensation plans, the truth is that the impact of lost money on FTX basically creates an even longer crypto winter. According to me, 2023 will still be a bearish and flat yearMuch closer to cycle, with no upward moves until early 2024 halve of the bitcoins“He’s finished.
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