Pantera CEO on the FTX collapse: Blockchain did not fail
With the FTX exchange highlighted across the financial world, confidence in the crypto space seems to be waning. However, Pantera Capital CEO Dan Morehead believes there are two areas of crypto that really work.
According to the executive, narratives questioning blockchain and calling it a failure due to the FTX collapse are wrong. The Pantera CEO claimed that there are several things in crypto that work, such as regulated exchanges and decentralized exchanges.
“If you can’t trust FTX, who can you trust?!”
The two-part answer is:
Regulated exchanges work excellently, e.g @myntbase, @Bitsstamp
DeFi works great, especially DEXs e.g @Uniswap, @Balancer, @BreederDodo
The business is moving back to secure units.
More: pic.twitter.com/9E1v1fs0gO
— Dan Morehead (@dan_pantera) 20 December 2022
In a letter to investors, Morehead highlighted that while crypto opponents and skeptical regulators want to assert the need for a different approach in blockchain trading, the solution is simple. He wrote:
“There are exchanges like Coinbase, Kraken and Bitstamp that, when a client sends money to them, just puts it in a bank. The solution is pretty straightforward.”
Aside from regulated exchanges, Morehead also believes that the decentralized financial space also worked well. Specifically, the Pantera boss pointed to decentralized exchanges such as Uniswap, 0x, 1inch, Balancer and Dodo.
According to Morehead, business in the blockchain space is moving back to secure entities as such. The executive claimed that FTX had nothing to do with blockchain’s promise, emphasizing that “blockchain did not fail.”
Related: What blockchain analysis can and cannot do to find FTX’s missing funds: Blockchain.com CEO
As the FTX collapse caught the attention of regulators worldwide, investment platform Superhero canceled its merger with crypto exchange Swyftx. In a letter to users, Superhero said that due to the current environment, the firm will terminate the merger and move forward as separate companies.
Meanwhile, former FTX boss Sam Bankman-Fried has signed extradition papers and will be flown to the US as he faces criminal charges. The former CEO of FTX will be charged with wire fraud, conspiracy to commit money laundering, campaign finance violations and conspiracy to commit wire fraud, commodities and securities fraud.
