Kraken CEO Discusses Impact of FTX Failure — Says Damage to Crypto Industry Is Huge, Will Take Years to Undo – Featured Bitcoin News

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'The damage here is huge ... We're going to be working to undo this for years,' said Kraken's CEO on the impact of FTX's collapse on the crypto industry. cryptocurrency

Kraken CEO Discusses Impact of FTX Failure — Says Damage to Crypto Industry Is Huge, Will Take Years to Undo

Powell listed a number of FTX red flags. Referring to former FTX CEO Sam Bankman-Fried, who stepped down after the bankruptcy filing, Powell explained that the first red flag is “acting like you know everything after showing up to the battle 8 years late.” The second red flag is spending “9 figs buying political favor.” The third is “being overeager to please DC,” and the fourth is making “huge ego purchases, like 9-fig sports deals.

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Under USA bankruptcy laws, an entity that fails to meet its obligation can file for protection under Chapter 11 of the United States Bankruptcy Code. Taking this step allows the defaulting entity to recapitalize and eventually emerge from bankruptcy with more equity than debt.

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Without trust in crypto, fewer newer investors, in turn less liquidity. Crypto prices will then become stagnant or drop like a stone when everyone is shorting.

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Source: CoinDesk - 🏆 291. / 63 Read more »