Pantera CEO on the FTX collapse: Blockchain didn’t fail

With the FTX alternate being highlighted throughout the world of finance, belief in the crypto area appears to dwindle. However, Pantera Capital CEO Dan Morehead believes that there are two areas in crypto that actually work. 

According to the govt, narratives that query blockchain and name it a failure due to the FTX collapse are unsuitable. The Pantera CEO argued that there are a number of issues in crypto that work, corresponding to regulated exchanges and decentralized exchanges.

In a letter to traders, Morehead highlighted that whereas crypto detractors and skeptical regulators need are purporting the want for a unique strategy in blockchain buying and selling, the answer is straightforward. He wrote: 

“There are exchanges like Coinbase, Kraken, and Bitstamp that, when a consumer sends cash to them, they only put it in a financial institution. The answer is fairly easy.”

Apart from regulated exchanges, Morehead additionally believes that the decentralized finance area additionally labored nicely. Specifically, the Pantera CEO pointed towards decentralized exchanges like Uniswap, 0x, 1inch, Balancer and Dodo.

According to Morehead, enterprise in the blockchain area is transferring again to protected entities like such. The govt argued that FTX had nothing to do with blockchain’s promise, highlighting that “blockchain did not fail.”

Related: What blockchain evaluation can and might’t do to search out FTX’s lacking funds: CEO

With the FTX collapse grabbing the consideration of regulators round the globe, investing platform Superhero canceled its merger with the crypto alternate Swyftx. In a letter to its customers, Superhero stated that due to the present setting, the agency will unwind the merger and transfer on as separate corporations.

Meanwhile, the former FTX CEO Sam Bankman-Fried has signed extradition papers and will likely be flown to the United States as he faces felony prices. The former FTX CEO will face prices regarding wire fraud, conspiracy to commit cash laundering, marketing campaign finance violations and conspiracy to commit wire, commodities and securities fraud.