FTX ex-exec floats 'cool token' idea amid warning rebound may take years
Bitcoin (BTC) and cryptocurrency may “take years to recover” from the FTX scandal, one industry analyst warns.
In a Twitter thread on Nov. 11, Filbfilb, co-founder of trading suite Decentrader, said that the Terra LUNA debacle was itself still playing out.
The crypto industry is experiencing “a clear case of what goes up must come down,” Filbfilb summarizes.
As the fallout from FTX and Alameda Research only begins to become apparent, many industry businesses and associated tokens have been left reduced to a shadow of their former selves.
Amid bankruptcy concerns from those with exposure to FTX and investigations from regulators, the outlook looks bleak for the industry’s reputation.
For Filbfilb, FTX-Alameda is itself a product of the implosion of Terra, Three Arrows Capital and others earlier this year.
“1) Most of this all links back to the first 3 AC / Celius meltdown,” he began.
He highlighted two other key causes:
The situation is in fact all too familiar; overly eager businesses create an ecosystem on steroids, which grows too quickly and takes on too much risk.
“Price, users, cashflow and compounded, cross-collateralized businesses using rapidly declining assets as balance sheet assets with future obligations works when price go up - its suicide when the tide goes out,” Filbfilb continued.
As such, for the cycle not to repeat itself, it may take “many years” of restructuring.
“So yes, im annoyed about the whole thing, ive never seen such a debacle, i understand why we are where we are but it is inexcusable by some of the people involved and they need to be held to account,” he concluded.
Feelings are tense for countless investors and businesses with funds tied up in now frozen FTX accounts.
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