In a conversation with Cointelegraph, Guillermo Escudero, CTO of CryptoMarket, assured that theo what happened with FTX has made us go back 4 steps in the crypto ecosystem, he indicated that these events have affected both investors, businessmen and the users themselves.
Guillermo assures that these events on FTX, Celsius and Gemini have created some new standards for the crypto industrythis is summarized in “provide transparent services”. In the conversation that we have had, he expressed his concern about the way in which FTX and its effects us “regressed”, causing companies in the crypto world to go bankrupt, and which, ultimately, negatively affects companies that still manage to maintain themselves.
From CryptoMarket they consider that the Proof Of Reserve (proof of reserve), does not constitute, by itself, an autonomous mechanism to demonstrate transparency. To better understand this statement, Guillermo tells us that: “If a project wants to be part of a certain platform, be it Cryptomarket, Binance or whatever, it is not enough to just say that I have 800 bitcoins for example, because the universe that will invest in that project will surely exceed, double or triple the amount you claim to have, then what is the use of having a proof of reserve of 800 bitcoins, if the funds of the users have tripled?”.
Therefore, considers Escudero, it is better to offer more transparent services for the user, so that “If a user has funds in custody of a platform, they should know where they are, what they are invested in”.
In this sense, he refers to the fact that there are mechanisms that he considers more efficient and transparent, in which a user to dispose of their bitcoins outside the exchange, which allows the user to actually have ownership of their funds, which is ultimately what Bitcoin was born fornot only as a peer to peer payment method, but as the reality that you have the full ownership of funds.
So Guillermo affirmed: “all bankruptcy and fraud events that FTX is going through, It really opened a door for us to continue evangelizing about Bitcoin, bringing service providers to a level of transparency that didn’t exist before.and this is so true that FTX collapsed and has generated a series of unfortunate situations for other less fortunate companies in the sector.”.
Additionally, provided his opinion on Celsius and Gemini, other companies in the ecosystem that have also been in the news and have shaken the ecosystem in their own way. In this regard, he stated that believes it possible for Celsius to get out of the bankruptcy processsince in the first instance it is believed that it has not touched the funds of the users, and in this sense it hopes that, following the current judicial process, it can comply with what corresponds and continue to face the user.
Regarding Gemini, “the shock wave of what happened to FTX and the relationship of funds with that exchange has wreaked havoc within Gemini, in addition to the fact that the FED denounced them for operating without a license for marketable loan securitiesTherefore, it is affected by a series of unfortunate events that have affected its operation. But the issue of regulation is a gray environment and as long as this continues, it will continue to be difficult for companies to operate normally.”, Escudero pointed out.
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