FTX crisis: What does this mean for cryptocurrency?

Richard Dennis
Richard Dennis
16 November, 2022
  • Posted in News
FTX crisis: What does this mean for cryptocurrency?

After the collapse of the crypto exchange FTX, many businesses and individuals have been left with the aftermath of the failed exchange. Sam Bankman-Fried’s empire diminished following a series of deposits, forcing bankruptcy upon the firm, and causing chaos to unravel in the industry.

The news of FTX has massively decreased trust in the crypto and digital currency community. The action taken by the exchange misled many up until the collapse – continuing to keep trading and deposits open until after bankruptcy.

The news has also led to an impact on other exchanges that used FTX. More exchanges are now thought to be insolvent or at risk of bankruptcy. As one of the largest crypto exchanges in the world, there was bound to be a knock on effect.

However, the news should not reflect the entire industry.

FTX continued pushing for regulations while committing fraud and using the sense of legitimacy to trap more people in the space. Additionally, the FTX token had zero value and was only used to increase the balance sheet. Tokens should be used for a real purpose.

For example, TEM is for clearing CBDC payments. With a lightweight, peer-to-peer cryptocurrency, Temtum enables anyone to support the Temporal Blockchain network, creating a new world of financial freedom away from centralised institutions.

Although FTX had both an exchange and existed as a market making company with all the data, it still managed to lose money. With the collapse of the exchange continuing to shake the market, investors and businesses must be reassured by cryptocurrencies in the future. Temtum is continuing to prove that blockchain technology is transforming the digital space for the future of cryptocurrency and CBDCs.