The FTX incident is proving to be a curse for the entire Cryptocurrency industry. With the crash of this single firm, there are more fluctuations in the market. Many Cryptocurrencies are about to disappear due to their poor performance. Also, now experts are predicting that more Cryptocurrency firms will be ruined due to FTX’s collapse! If you are new to Crypto trading and investments, then you must check the Bitcoin trading platform Quantum Pro 360. This platform will guide you throughout your Crypto investments.
This forecast is coming mainly from the co-founder of Palantir Technologies, Joe Lonsdale. He is of the view that many such firms in the Crypto industry will face the impacts of FTX’s downfall soon because most of such firms are operating like a Ponzi scheme.
Despite this viewpoint, he also shares that he believes Blockchain has a decent future because this technology offers an innovative way to handle money and move it around the globe.
More Crashes Like FTX Will Occur
Lonsdale expresses his views and predictions on this matter. He says that since there are no fixed rules and guidelines for the market, crashes will be quite common. Also, he believes that maximum projects in the industry are operating as Ponzi plans. These facts are the major causes behind such a huge collapse like that of the FTX.
He shares that such crashes should be a common thing by now. This is the only outcome when a sector is left out without any regulations. Many firms have filed for Bankruptcy this year and paused all their operations.
And more firms will be there in the upcoming times in the list of crashes!
The Reasons Behind Such Huge Crashes
These firms indicate different causes for this action. The ongoing bearish phase is one of the most basic causes shown by these failed firms. Despite this, other factors are the root cause of the Bankruptcy, which these firms are hiding.
Lonsdale argues that most such firms are failing due to their high level of corruption. And FTX falls in this category as well! Though he is against these companies, claiming them to be scams, he believes that CryptoCurrency is a great innovation. And he assumes that Cryptos can be quite advantageous for the financial market.
Also, he is a huge fan of Blockchain as it has huge potential. This technology enables people to transfer funds to any part of the world without any hassle. With Blockchain, you do not need to rely on any other parties and transfer funds to anyone you wish. With this, the technology offers you freedom in the case when the government is corrupted too!
Palantir Will Accept BTC
Palantir, an American software and analytics firm, which is co-founded by Joe Lonsdale, will accept BTC. It made its way to the Crypto industry last year. And the firm entered the market by clutching onto Bitcoin.
Besides that, Palantir also bought a good amount of Bitcoin and other digital assets. And they stored these assets in their balance sheet.
Another co-founder of this firm, Peter Thiel, has advocated different times. Apart from this, he is even a BTC HODler. He praises this Crypto to a great extent and feels like he has not invested enough in it! Also, this billionaire entrepreneur feels like he should invest more in BTC and praises its decentralized nature.
After these comments went viral, the price of BTC touched an all-time peak rate. In lesser than a month after Thiel’s comment, BTC’s price reached about 70,000 USD.
But, after that period, BTC is not showing its best performance while reducing its success rate. At present, Bitcoin is performing at 16,820 USD, which is pretty low from the highest value. This huge decline in BTC’s value indicates how volatile the entire market is!
In a market, which faces fluctuations now and then, regulations are quite important. With regulations, investors and brands can be sure of their funds’ security. And the factor of risk declines by a considerable amount.
Predictions of more firm crashes are revolving in the market. The major causes behind this are the lack of regulatory bodies and corruption in the firms.