CRYPTO
CAN TRUST IN CRYPTO BE RESTORED ?
Volatility has seen faith in cryptotraded assets plummet for asset holders and those yet to trade in digital assets ; how can trust be restored ?
WRITTEN BY : LOUIS THOMPSETT
It goes without saying that crypto markets have gone through their fair share of volatility , ever since Bitcoin announced itself as the first coin on the blockchain .
But , after crypto exchanges saw their worth soar in 2020 to US $ 826.6m , perhaps the biggest , and most reputably damaging blow to crypto ’ s integrity as a stable investment is FTX ’ s bankruptcy in November 2022 .
FTX ’ s valuation – standing at a mighty US $ 34bn – was wiped out almost overnight after major investors including Sequoia Capital and Softbank wrote their investments down to zero .
So shocking was FTX ’ s collapse that Forbes says it represented crypto breaking its social promise , to deliver “ a better , safer and more inclusive financial system , of the people , by the people , for the people .”
FTX collapse : One volatile swing too far ? However , if you ask UST ’ s Director of Innovation and Global Head of Blockchain ,
118 December 2023