Some worry that FTX’s collapse will shake the relationship between institutions and cryptocurrencies. Institutional investors like JP Morgan believe, however, that the debacle will entice financial institutions to adopt crypto.
Deutsche Bank’s senior economist and macro strategist Marion Laboure, notes that corporate mismanagement is the root of the recent downfalls in the crypto sector.
He thinks, “Insufficient reserves, conflict of interest, a lack of regulation and transparency, and unreliable data,” form a problematic structure that leads to major catastrophes.
The FTX Washout
The market is washing out in the wake of a sudden exchange collapse. Bitcoin, the world’s biggest cryptocurrency, struggles to bounce back its November peak when the coin reached the $65,000 mark.
The giant is now trading around $16,000, signaling an extended crypto winter while red waves seem to be rather solid across altcoins’ performance.
But…
