An industry analyst has warned that Bitcoin (BTC) and cryptocurrencies may “take years to recover” from the FTX scandal.
and twitter thread On Nov. 11, Filbfilb, co-founder of trading suite DecenTrader, said that the Terra debacle itself is still ongoing.
Filbfilb: “I’ve never seen a fiasco like this”
Filbfilb summarized that the crypto industry is experiencing “clear cases where everything that goes up always goes down.”
As the impact from FTX and Alameda Research is only beginning to emerge, many industry businesses and associated tokens remain shrunken in the shadows of what they once were.
The outlook for the industry’s reputation looks bleak amid bankruptcy concerns from those exposed to FTX and investigations from regulators.
For Filbfilb, FTX–Alameda itself is the product of earlier this year’s implosion of Terra, Three Arrows Capital, and others.
“1) Most of all this is related to the first 3 AC/Celius meltdowns,” he began.
He highlighted two other main causes.
“2) Companies in this space have further increased their aspirations based on paranormal and parabolic industry growth. 3) Cash is king. doing.”
In fact, the situation is all too familiar. Overzealous companies create a steroid ecosystem that grows too fast and takes too many risks.
“Compounding cross-collateralization businesses that use rapidly declining assets as balance sheet assets with prices, users, cash flow and future obligations work when prices rise. They commit suicide when the tide goes out.” continued Filbfilb.
So it may take “years” of rebuilding to keep this cycle from repeating.
“Yes, I am pissed at everything. I have never seen such a debacle. and they need to be held accountable,” he concluded.
Former FTX Sales Director Avoids Bankruptcy ‘Boomer Proceedings’
Emotions are tense for the countless investors and businesses whose funds are currently tied up in frozen FTX accounts.
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On Nov. 11, Zane Tackett, the exchange’s former head of international sales, confirmed that the total debt is -$8.8 billion.
and twitter thread He independently asked users whether FTX should create a “cool token” as a way to restructure its debt instead of filing for bankruptcy in the traditional way.
“There’s no way to paint a pretty picture from these numbers, but when I looked at the balance sheet tonight, I thought it was going to be worse,” he revealed.
“Naturally, there’s a big hole in liquidity and a pretty big change in the venture portfolio.”
Less than an hour after going live, the survey received 3,100 responses, with 71% asking to create a token.
Such a move is similar to that of fellow exchange Bitfinex, which released its UNUS SED LEO (LEO) token after $70 million in BTC was hacked in 2016.
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