join our Telegram channel to stay up to date on breaking news coverage
The gigantic trillion dollar cryptocurrency industry is on shaky ground after scandals in 2022 caused crypto giants like FTX and Alameda to implode. According to federal indictments, Bankman-Fried’s fraud removed $8 billion of his investor’s money, resulting in the collapse of his $32 billion cryptocurrency conglomerate. The destruction started a ripple effect across the entire crypto market in the final months of 2022, and its impact is still being felt in 2023.
But in the long run, the fall of the SBF may turn out to be more of a blessing than a nightmare, according to some experts.
Streamlining the crypto market will be beneficial for Bitcoin, says MicroStrategy co-founder
Michael Saylor, one of the most prominent corporate advocates and sponsors‘ makes a rational prediction of this doom, saying: “The crash has created short-term negative headwinds for Bitcoin because Bitcoin is cross-collateralized with all of these other cryptos. But in the long run, streamlining the crypto market will be beneficial for Bitcoin.”
“The bankruptcy stories of BlockFi and Celsius, FTX, Alameda, Genesis, and Voyager highlight the integrity of the crypto space as much as they expose its vulnerability and fragility.” says the Microstrategy co-founder, stating that “the crash was painful but it is necessary for the industry to grow.”
Crypto has brought a flood of innovative ideas with its bullish and industrious attitude towards a borderless digital currency network. However, it comes with its own share of risks. The overzealous entrepreneurs who are the champions of this innovation resort to recklessness to get their point across. And its “us against the world” attitude has proven to be an expensive risk, paid for by ordinary investors.
So what you need now is a proper framework to uphold the standards and safeguard the interests of investors.
According to Saylor, Bitcoin’s strength as a decentralized digital product was underscored by the failures of others who did not share those same qualities.
Bitcoin is a commodity that investors can hold without an issuer. The vast majority of all crypto tokens in existence are unregistered securities traded on unregulated exchanges, and‘re pretty centralized.
Saylor says: “….what the world wants are digital assets, digital commodities and digital securities, but there are‘There is no way to record a digital value.”
Progressive intervention, not regressive, is what will push Crypto in the right direction
Currently, there is no clear roadmap for registering digital security and no clear guidelines for designating a digital product.
(Crypto) needs adult supervision from Congress and the SEC. It needs Goldman Sachs and Morgan Stanley to step in and show investors the noose. According to him, the crypto industry should move forward now with proper regulatory intervention.
He thinks that the intervention in the past has been restrictive and regressive. What the market is waiting for is a positive and progressive regulation. Regulators are expected to show investors how to register a digital currency and how to register a digital security or digital product.
Saylor says: “…instead of saying all cryptocurrency exchanges should register, we need to register cryptocurrency exchanges because the future of the industry is trading registered digital assets on regulated exchanges where everyone has investor protections. they need and investors understand the difference between Bitcoin and a stablecoin and security token…”.
A clear regulation will change the narrative of this industry. It will give more power to regulators and speed up their intervention. With the involvement of progressive regulation, the industry may see fewer tokens, but they will be properly registered tokens. As a result, the industry will grow faster and investors will benefit from it.
And while authorities mull over regulations, keep in mind that the cryptocurrency market is still volatile. Bitcoin is back in its $20 zone now that the January 2023 bull rush is over, and other tokens are following suit. These cases make it important for investors to hedge their bets and invest in pre-sales that they can benefit from outside of live trading markets.
In addition to giving investors an early move opportunity, these new cryptocurrencies are carriers of innovative ideas. They are bringing much-needed utilities to the blockchain that are sure to have great benefits in the long run.
Related Posts
- How to buy bitcoin
- Head of Innovation at Bank For International Settlements Hawkish on Crypto
Fight Out (FGHT) – New Move to Earn project
- CertiK audited and CoinSniper KYC verified
- Early stage presale live now
- Earn free cryptocurrencies and meet your fitness goals
- LBank Laboratories Project
- Associated with Transak, Block Media
- Rewards and participation bonuses
join our Telegram channel to stay up to date on breaking news coverage
