Pantera CEO on the FTX collapse: Blockchain didn’t fail

Published at: Dec. 21, 2022

With the FTX exchange being highlighted all over the world of finance, trust in the crypto space seems to dwindle. However, Pantera Capital CEO Dan Morehead believes that there are two areas in crypto that truly work. 

According to the executive, narratives that question blockchain and call it a failure because of the FTX collapse are wrong. The Pantera CEO argued 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-pronged answer is:Regulated exchanges work great e.g. @coinbase, @BitstampDeFi works great, specifically DEXs e.g. @Uniswap, @Balancer, @BreederDodoBusiness is moving back to safe entities.More: https://t.co/Ph0i9IuS9h pic.twitter.com/9E1v1fs0gO

— Dan Morehead (@dan_pantera) December 20, 2022

In a letter to investors, Morehead highlighted that while crypto detractors and skeptical regulators want are purporting 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, they just put it in a bank. The solution is pretty straightforward.”

Apart from regulated exchanges, Morehead also believes that the decentralized finance space also worked well. Specifically, the Pantera CEO pointed toward decentralized exchanges like Uniswap, 0x, 1inch, Balancer and Dodo.

According to Morehead, business in the blockchain space is moving back to safe entities like such. The executive argued that FTX had nothing to do with blockchain's promise, highlighting that "blockchain didn't fail."

Related: What blockchain analysis can and can't do to find FTX's missing funds: Blockchain.com CEO

With the FTX collapse grabbing the attention of regulators around the globe, investing platform Superhero canceled its merger with the crypto exchange Swyftx. In a letter to its users, Superhero said that because of the current environment, the firm will unwind the merger and move on as separate companies.

Meanwhile, the former FTX CEO Sam Bankman-Fried has signed extradition papers and will be flown to the United States as he faces criminal charges. The former FTX CEO will face charges relating to wire fraud, conspiracy to commit money laundering, campaign finance violations and conspiracy to commit wire, commodities and securities fraud.

Tags
Business
Exchanges
Cryptocurrency Exchange
Defi
Decentralized Exchange
Related Posts
Celsius’ crisis exposes problems of low liquidity in bear markets
After one week of pausing user withdrawals, swaps and transfers, the firm said it was maintaining an open dialogue with regulators and officials and plans to continue working with them regarding this pause. Celsius has yet to comment on when the company is going to stabilize its operations. Celsius has also paused communications on Twitter Spaces and ask-me-anything (AMA) sessions “to focus on navigating these unprecedented challenges.” Although Celsius has refrained from communication, media and social media have been buzzing with news and speculation going on around the past, present and future of the company. One of the most interesting …
Adoption / June 22, 2022
Will the launch of Uniswap v3 spark a new DeFi boom?
With the total value locked in decentralized finance on Ethereum now $89 billion, the market is eagerly waiting to see if the launch of Uniswap v3 could be the catalyst for DeFi’s next big bull run. Uniswap v3 promises advanced new features and opportunities for yield generation with its launch scheduled for Wednesday. Uniswap is emphasizing three new features for liquidity providers — customizable capital deployment across a market’s entire price curve in the form of concentrated liquidity, tiered market maker fees offering boosted returns for volatile pairs subject to impermanent loss, and cheaper access to oracles for improved data …
Technology / May 5, 2021
Coinbase made $2.2 billion in revenue from transaction fees in Q4
Coinbase’s Q4 financial report vastly exceeded market expectations Thursday, after the firm posted $2.5 billion in net revenue for the quarter, beating analyst predictions by 27%. FactSet consensus had forecasted Coinbase to generate approximately $1.9 billion in revenue for the period. Notably, the popular crypto exchange more than doubled transaction revenue from Q3 to Q4, generating 91% ($2.276 billion) of its total Q4 revenue from transactions alone. Adding to investor confidence, the company’s total transaction revenue for 2021 was a whopping $6.8 billion. Despite the report posting $840 million in net income and showing substantial growth from 7.4 million monthly …
Markets / Feb. 25, 2022
Identity is the antidote for DEXs’ regulation problem
Regulators from Europe, the United States and elsewhere are busily hammering out details on how to designate decentralized exchanges (DEXs) as “brokers,” transaction agents or similar entities that affect a transfer and cooperate with each other. The U.S. called for multinational cooperation in its executive order on responsible digital asset development, as did the European Union with its recent Financial Stability and Integration Review. And that is just what’s publicly accessible. Behind the scenes, the whisper of regulation is getting louder. Did anyone notice that all the Know Your Customer (KYC) requirements have been laid on smaller centralized exchanges in …
Blockchain / May 29, 2022
FTX showed the value of rejecting gatekeepers in favor of DeFi
The rapid implosion of FTX has led general investors and crypto believers alike to question the validity of crypto and, indeed, predict its end. But, an understanding of history points not to crypto’s demise but rather a move toward new technology and growth. Financial markets move, as Willie Nelson once said, in phases and stages, circles and cycles. Companies develop ideas, grow quickly, ignite unwarranted investor euphoria and then implode — only to seed the ground for the next company, the next idea and the next growth phase. Crypto is no different. In 2010, an unknown person famously used Bitcoin …
Decentralization / Nov. 21, 2022