November 11, the date on which FTX’s bankruptcy was announced, will remain etched in investors’ memories as a day of scandals and significant losses at all levels and assets of the cryptocurrency market. Some people, including celebrities and athletes, confessed to the loss of their investments. Despite this collapse, some experienced investors chose to remain in the market, aware that this decline could trigger beneficial consequences for them.
So what has changed in the sector that justifies continuing to invest? The answer: many lessons learned. Both exchanges and investors have learned a valuable lesson, mainly focused on transparency and user protection. The public disclosure of reserves on exchange platforms has led to increased scrutiny of those who promise profits but offer no solid explanation of how they would support investors in the event of a similar contingency.
In response to the fluctuations inherent in the cryptocurrency market, major players have taken responsibility, not only for the sake of their reputations, but also as a measure of protection for both investors and the integrity of their own platforms, including important initiatives , such as the launch of Test Reserves and Protection Funds. It has been understood that volatility is an intrinsic characteristic of this market, and, as a result, a more stable and secure environment is being created in the sector, in which all participants play a determining role, whether positive or negative.
With this framework in mind, setbacks in the cryptocurrency universe have put the need for stronger regulation on the table. It is imperative that all actors are involved in the formulation of these regulations, with the purpose of encouraging responsible adoption without sacrificing the qualities that make cryptocurrencies accessible and attractive to various markets.
In this sense, the best practices in the sector during the last year have transcended mere compliance with existing regulations, incorporating additional security measures beyond the requirements of some countries. The incorporation of relevant actors, such as traditional payment platforms and banks, has democratized access to cryptocurrencies, facilitating the exchange and payment of goods and services, which has made cryptocurrencies a reality for a public that in the past he was skeptical, especially after the crisis of the previous year.