Does FTX implosion imply obituaries for all crypto currencies? No, rather it implies the need for strict regulations of crypto exchanges. The key reason behind this implosion appears to be using client funds kept with this exchange, to shore up the balance sheets of a promoter owned trading firm "Alameda Research".
If this is indeed the reason, then no way does it reflect even remotely in the crypto currencies per se. Rather, it calls for strict regulations of the crypto exchanges to ensure investors' interests.
The sovereign currencies world over have taken a hit in varying proportions, vis-a-vs the US dollar due to liquidity tightening by the US Fed, and followed by other central banks, The crypto currencies have taken much higher hit due to the same reason, and more so as they are still a nascent asset class.
FTX saga has been a wake-up call for all the regulators. And going ahead, such crypto exchanges would be subjected to strict regulations and checks. Secondly, with the inflation expected to stabilize in the medium term, and the central banks expected to take a breather on rate hikes, investor confidence is likely to return, and the crypto currencies a would certainly find their own level akin to stock markets.
Yes, coming to million dollar question of what would be the status of such crypto currencies vis-a-vis sovereign currencies? No way can the monetary authorities anywhere, would allow them to pose a threat to their respective sovereign currencies. At best crypto currencies would be an asset class akin to gold, and perhaps used as a medium of exchange in the emerging meta verse world.
If this is indeed the reason, then no way does it reflect even remotely in the crypto currencies per se. Rather, it calls for strict regulations of the crypto exchanges to ensure investors' interests.
The sovereign currencies world over have taken a hit in varying proportions, vis-a-vs the US dollar due to liquidity tightening by the US Fed, and followed by other central banks, The crypto currencies have taken much higher hit due to the same reason, and more so as they are still a nascent asset class.
FTX saga has been a wake-up call for all the regulators. And going ahead, such crypto exchanges would be subjected to strict regulations and checks. Secondly, with the inflation expected to stabilize in the medium term, and the central banks expected to take a breather on rate hikes, investor confidence is likely to return, and the crypto currencies a would certainly find their own level akin to stock markets.
Yes, coming to million dollar question of what would be the status of such crypto currencies vis-a-vis sovereign currencies? No way can the monetary authorities anywhere, would allow them to pose a threat to their respective sovereign currencies. At best crypto currencies would be an asset class akin to gold, and perhaps used as a medium of exchange in the emerging meta verse world.
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