The HashCash Chief emphasizes the need to support strong crypto projects suffering from a liquidity crisis across the crypto ecosystem
Last week’s FTX collapse caused a massive earthquake in the crypto industry and shook the trillion-dollar industry to its core. The world’s third-largest crypto exchange filed for bankruptcy last week, confirming reports of its downward spiral. HashCash CEO Raj Chowdhury mentions that the mishandling of assets has eroded investor trust throughout the industry, stressing a need to empower fundamentally sound projects and rebuild the crypto community.
FTX served millions of users, and catered funds to startups, and institutions. Being one of the most credible and trusted exchanges in the industry, the collapse and fraud were catastrophic that shook the entire industry. The thirty-year-old CEO of FTX, Sam Bankman-Fried was a prominent crypto leader with an estimated net worth of $26 billion. The valuation transformed to zero within days following the bankruptcy, along with the vanishing of $1 billion worth of investor assets. Backed by Sequoia Capital and BlackRock, FTX rapidly gained popularity and was one of the largest exchanges. However, the company pulled loose strings lending billions to Fried’s crypto trading firm, Alameda Research which bet on risky assets based on insider information. Elliptic, a crypto risk management firm states that $473 million worth of crypto was seized from FTX.
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The HashCash Chief, also a noted blockchain pioneer, asserts, “The FTX insolvency has been catastrophic, triggering a domino effect across the entire crypto industry. It’s time to support crypto projects with strong potential suffering from a liquidity crisis. Let’s rebuild the crypto community and bring back the lost crypto investor confidence”.
Several other crypto exchanges are making similar efforts to bring the crypto industry back to its previous shape. Binance CEO, Changpeng Zhao announced to build of an “industry recovery fund” to provide liquidity to the qualified projects. He also mentioned that no help will be provided to frauds such as FTX. The crypto industry is not regulated which has already formed controversy revolving around the sector. According to experts, the FTX collapse has been the worst fraud case since its inception in 2009.
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“The ripples of the collapse are without a doubt felt across the entire crypto community. The industry needs support in terms of liquidity to rebuild the loss”, concluded Chowdhury. He has previously highlighted the application of blockchain in patent claims, and in the education industry.
HashCash Consultants is a US-based blockchain development company led by Chief, Raj Chowdhury. The company has deployed its products in more than twenty-six countries, and six continents. These products include white-label crypto broker platforms for brokers, institutional investors, and crypto payment processors trending among retailers in the US. The firm was also ranked as the top blockchain development company by a tech research firm. The firm is also expanding development facilities in Dubai.
Cryptocurrencies have evolved over the years and gained huge popularity among investors. Since the industry is yet to be regulated, there have several reports of scams and frauds. The industry has huge potential in the future and requires support with liquidity to accelerate strong projects in the industry.
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