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What does the FTX debacle mean for Ethereum and Big Eyes Coin Future and crypto in general? | NewsBTC

Another day, another crypto prodigy burns like Icarus, dragging his project down afterward with billions of investor money locked in with the rest of the industry into the abyss. SBF, or Sam-Banked Fried, was a lot of things, but he didn’t fly too close to the sun, no sir.

What he did, however, was unethical, wrong, and simply illegal and reckless. But as the market crashes, people are losing their life savings, like Tom Brady, who invested over $600 million in the FTT token, the exchange’s native currency; the question remains: where do we go from here?

Are we coming back to heal our wounds and hope to see better days? Are we actively advocating for stricter regulations, which would prevent us from these related events? Or do we just step back and watch the world burn? Join me in today’s editorial to examine the ramifications of what happened to SBF and FTX could mean for Ethereum, Big Eyes Coin, and the crypto industry in general. Let’s dive into it.

The context:

Without going into too much detail, here’s what happened: FTX had a sister research company, Alameda, which pursued very aggressive investment strategies even during the bear market. As you might have guessed, the money they invested in the protocols was not just the investors’ money, but also the FTT token. Naturally, many would wonder why they pursued such a strategy in the first place. To answer this question, you have to understand that the growth of FTX has been phenomenal.

In three years, the company’s valuation has grown to nearly $40 billion, unprecedented for the crypto industry. Given this, it is not surprising that SBF thought its bet would pay off since it is a fairly regular thing that any centralized bank does, for example, with its customers’ money. Unfortunately, that is not the case and the crypto industry has faced the inevitable wrath of the Sword of Damocles.

Ethereum: Is there a future?

The situation with Ethereum is somewhat complicated since the Tornado Cash software was banned. While that may not mean much on the surface, in reality, L2 protocols like Aztec and its neighboring friends could be on the verge of extinction, which is not good news for the Ethereum network. The aforementioned L2 protocols are there to ensure that the financial data of transactions on Ethereum is hidden from public view. From the start, Ethereum relied on decentralization facilitated by privacy but at the cost of high gas fees and network speed.

And while it is hoped that these issues will be resolved in the future, the sacrifice has been made to ensure privacy above anything else. Prior to the FTX collapse, over 70% of DeFi validators were OFAC compliant, with most of the industry openly adopting the inevitable regulations. The problem is that what happened could trigger even more paranoia within the sector, leading to rules that hinder innovation. What the future holds is not yet clear, but these issues need to be resolved

if we want crypto to prevail.

Big Eyes Coin: Will Meme Tokens Be Affected?

The short answer is yes and no. While the FTX debacle looks dire for foundational protocols, like Ethereum, meme tokens are swimming in entirely different waters. The Big Eyes Coin project does not deal with privacy like L2 protocols; above all, it is a community token, where its loyal fan base is its strongest trait. It does indeed have a DeFi component, but again, protocols like Circle have gone to comply with the regulatory framework, and they work just fine without any issues.

If you’re intrigued by Big Eyes Coin, here’s a video below that digs deeper.

So, the Big Eyes Coin project, which involves DeFi and NFT elements in its value proposition, is not about how regulations will affect it, but whether or not it will adopt those regulations. A meme token that plans to have its own NFT marketplace, where JPEG holders would be incentivized to resell them on secondary markets thanks to a specific tax put in place, should not fear the wrath of the Sword of Damocles. as regulation would not affect it as much as other parts of the crypto industry. If you think this project resonates with you, here is a BIGPRIZE11 promo code to earn free tokens when purchasing the platform’s native token, BIG.

Disclaimer: This is a paid version. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of NewsBTC. NewsBTC does not guarantee the accuracy or timeliness of the information available in this content. Do your research and invest at your own risk.

#FTX #debacle #Ethereum #Big #Eyes #Coin #Future #crypto #general #NewsBTC #crypto strategy

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