Norwegian cryptocurrency exchange Ferry said deposits increased fivefold in the days following FTX’s massive crash. – We see cryptocurrency investors moving their money home to a large extent.
A week ago, Sam Bankman-Fred’s crypto empire collapsed into bankruptcy. It has created huge ripple effects in the cryptocurrency market and scratched the confidence of the industry.
Billions of dollars have disappeared and cryptocurrency investors around the world have been affected.
But for Norwegian cryptocurrency exchange Firi, the wave effects have been positive so far, even as they describe the bankruptcy of cryptocurrency exchange FTX as “boring” for the industry.
The company says it has seen a sharp increase in deposits from foreign exchanges.
– In the days after the news about FTX appeared, we quintupled cryptocurrency deposits compared to the previous days. “We see that deposits have remained at a higher than normal level,” says Marius Bleker Hogevold, COO of Firi.
– This means that there are a number of Norwegians who have kept their money on foreign exchanges, but become unsure whether they are safe, and move their money to Norwegian stock exchanges, he continues.
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Many people create their own portfolios
Markus Arnesen invests in the cryptocurrency market and follows the Norwegian cryptocurrency environment. The 19-year-old runs YouTube channel “KryptoOle”.
He feels, the same way Ferry does, that people are becoming more aware of where they’re keeping their money after FTX’s bankruptcy.
– People have opened their eyes to the fact that cryptocurrency is not meant to be held on exchanges like FTX or Binance, but you can hold it yourself. Many are now creating their own crypto wallet and moving funds away from exchanges. He says it is a very positive sign that people are taking on this responsibility.
However, he believes that cryptocurrency exchanges will play an important role due to the handling of the keys that give access to the wallet.
Not everything is created to take care of the many different keys as required if you have your own crypto wallet. If you lose a key, you can lose your entire fortune, and many will use cryptocurrency exchanges to avoid this liability.
– How do you think the FTX incident will affect cryptocurrency investors like yourself?
Cryptocurrency exchanges lose trust, but the cryptocurrency itself maintains trust. People do not stop doing cryptocurrency, he says, who himself has no plans to put his main occupation on hold.
– A completely different beast
For Norwegian cryptocurrency exchange Firi, the FTX bankruptcy underscores how important regulation of the crypto industry is.
– We want strict regulations, because we think that’s the right way to go. It will also help more cryptocurrency adoption, as many private and institutional players are waiting for clear regulations before increasing their investments, says Firi Thuc Tuan Hoang CEO.
Why is cryptocurrency so difficult to regulate?
The crypto industry today is 10 times bigger than it was two years ago. New services, new environments, and new products are coming very quickly. He says that what is being attempted to organize today may already be finished.
But in the new year, the European Union will finally come up with a proposal on how they want to regulate cryptocurrencies, called MICA.
They started working in 2017, but they didn’t get to the draft until this year. Crypto regulation is a whole different beast with a very different pace than anything else, Thuc says.
– Unmatched
In the FTX bankruptcy process that began in the United States, John J. Ray, the latest recipient of Bankman Fried, has come to a tough judgment.
“Never in my professional life have I seen such a complete failure of corporate governance, such a complete absence of reliable financial information as here,” Ray says recently. legal documents from the bankruptcy process.
Ray assumed the CEO role when FTX filed for bankruptcy protection last week. And Ray isn’t just anyone, the man has led many of the biggest corporate failures in history through bankruptcies, including the stunning bankruptcy of energy company Enron in 2001.
However, Ray refers to the FTX mode as unprecedented.
He slaughters those who led the company, using words like inexperienced, unsophisticated, and potentially vulnerable individuals.
Schibsted owns a stake in Firi of about 5.5 percent. E24 is a subsidiary of the Schibsted Group. Some E24 journalists own shares in Schibsted, by participating in the group’s equity savings programme.
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