Crypto enthusiast told what is behind the bankruptcy of FTX

Bitcoin Policy co-founder David Zell believes that despite the negative impact of the bankruptcy of the FTX crypto exchange on the digital asset market, this will help build confidence in BTC. According to the entrepreneur, in the long term, the collapse of FTX will increase the adoption rate of the main crypto coin.

Zell also noted that the value of bitcoin lies in the fact that the owners of the asset can store it on their own, without relying on counterparties. Therefore, the idea of storing your savings on exchanges is contrary to the concept of cryptocurrencies.

The co-founder of Bitcoin Policy admitted that the key reason for the collapse of FTX was the lack of demand for the FTT token. The researcher believes that the company intentionally overestimated the value of the asset.

And then it used the cryptocurrency as collateral to borrow a significant amount of funds. But FTT had few buyers, and given that the token was a "perpetual motion machine", this led to the collapse of the exchange.

“Participants in the crypto space must remember one thing: not your keys, not your assets. People who lost money on FTX failed to follow this golden rule. Therefore, an important advice that can be given to the owners of crypto assets: withdraw funds from centralized exchanges and store them yourself,” said the head of Bitcoin Policy.

And Shark Tank investor and star Kevin O'Leary sees FTX's bankruptcy as a turning point for the market, noting that "crypto has already arrived." He expressed disappointment in the project, but stressed that he remains “an active supporter of the potential of blockchains and cryptocurrencies.”

Despite periodic upheavals in the cryptocurrency industry, there has not yet been a tangible decline in interest in this area. The main motive for investors remains a thirst for profit, and not a protest against the conservative banking system. This is stated in a new study by the Bank for International Settlements (BIS).

“Users are attracted by the rising price of bitcoin, and not dislike of traditional banks, the search for savings ways and distrust of state institutions. The price of bitcoin remains the most important factor,” the analysts noted.