“Get ready for lower for longer, because it’s coming.”
Arthur Hayes is the founder of the cryptocurrency trading platform BitMEX. In a blog post titled “Speechless“, he discusses the fallout of FTX although he is optimistic about where we’re headed.
Hayes defines how even through controversy, the model of a blockchain still thrives and isn’t affected by external issues. He goes on to describe how there will always be a mistrust from exchange to customers and FTX wasn’t the first exchange to fail and will not be the last – a certain nod to Mt. Gox.
“Centralised exchanges will always face these issues of mistrust on behalf of their customers. FTX was not the first high-profile exchange to fail and it won’t be the last. But throughout all this, blocks on Bitcoin, Ethereum, and all other blockchains were still produced and verified. Decentralized money and finance have and will continue to survive and thrive in the face of the failures of centralized entities.”
Hayes believes that without an intermediary coming to fix the market, it means users have to do better and not rely on someone to come fix their mistakes. This goes without trying to belittle the damage caused to the everyday users of FTX.
“But the good thing about crypto is that no central bank will be riding the rescue with freshly printed fiat shitcoins to bolster the balance sheets of reckless companies. The crypto industry will be forced to devour its humble pie quickly — leading to a speedy recovery that leaves it stronger than ever.”
Hayes believes there are a “few possible zombies remaining…hiding in plain sight,” which he was reluctant to name.
Despite the unfortunate events happening, Hayes does remain bullish for 2023 and going forward, although we must be prepared for lower lows.
“While I am supremely bullish on the prospects of crypto in 2023, I believe we are about to trade to new lows as everyone wonders which crypto household name will go bankrupt next for lending money to FTX / Alameda.”
See Related: Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App
