Co-founder of the Bitcoin Policy research center David Zell believes that, despite the negative impact of the collapse of the FTX exchange on the cryptocurrency industry, this will strengthen confidence in Bitcoin. Speaking on the television show "Just the News, No Noise", David Zell said that in the long term, the bankruptcy of the FTX trading platform will increase the level of Bitcoin acceptance.
Zell noted that despite the sensational situation with FTX, many still believe in Bitcoin. Its value lies in the fact that people can store Bitcoin on their own without relying on counterparties. Therefore, the idea of storing existing digital assets on exchanges acting as a third party contradicts the concept of cryptocurrencies, Zell explained. He suggested that the main reason for FTX's failure is that the FTT token was not in demand. According to the researcher, FTX created its own cryptocurrency and used a trading firm closely associated with it to artificially inflate the FTT rate, and then use it as collateral for a loan of a large amount of funds. However, the token had few buyers, and given that FTT was a "perpetual motion machine", this led to the bankruptcy of the exchange.
Participants in the crypto space should remember one thing: not your keys, not your assets. People who lost money on FTX could not comply with this golden rule. Therefore, an important advice that can be given to owners of crypto assets is: withdraw funds from centralized exchanges and store them yourself..said the head of Bitcoin Policy
Earlier it was reported that the FTX bankruptcy led to a panic of crypto investors and a massive withdrawal of assets from centralized sites.