Crypto-Chaos: FTX Fraud “Will Hurt,” Correlation with Risk Will End “One Day”
Boston – “What happened with FTX unless you do with cryptocurrency and much more with old -fashioned fraud,” said Paolo Bassoni, former Latin America official for SoftBank. “Soon it will become clear.”
FTX filed for bankruptcy on Friday after the value of his token, FTT, plunged, causing a race among the users to see who can take the fastest. Now, three American agencies – SEC, CFTC and the Ministry of Justice – are investigating Sam Bankman -Fried.
Bassoni said that many cryptography companies are presented as exchanges, but in reality they work as banks. “The scholarship should not take any risk of mismanagement,” said Bassone yesterday at the Harvard Business School MBA Conference. But some of these “supposed” scholarships actually act as banks. this is unacceptable.”
“If cryptography companies must function as banks, they must be regulated as banks. In this way, we will have a better environment for everyone.” *** Antoine Colaco, a CEO who spent nine years at Google and who is now associated with Valor Capital, agrees: “In FTX, there was fraud, which could have happened in any What other industry is nothing specific to cryptocurrency. “
Regarding the future of cryptocurrencies and other cryptographic assets, Colaco said that they should not be associated with these assets and risky products, as is currently the case. “The question is when this link will end,” he said. We don’t know when, but I think it will happen at some point.
Valor maintains its investments in cryptocurrencies but favors companies which are devoted to the development of service and transactions infrastructure, which can help reduce the ineffectiveness of the economy. *** FTX’s collapse “has a significant impact on short-term cryptocurrencies; Hashdex co-founder and CEO, Marcelo Sampaio, said:”
Marcello’s advice to those who want to invest in cryptocurrency and mitigate risks is “do not try to choose winners, but buy the market”, that is to say have a diversified portfolio or buy etf . For him, the future of cryptocurrency remains unshakable. “Crypto is the new Internet. It is the Internet of value.” From an investment point of view, cryptographic assets are always very volatile and maintain their correlation with risky assets. But he also believes that at one point, this link will break.
“It’s still a very new sector.” *** André Leme, Bain & Company, said that cryptocurrency is the new border for financial technology companies. “Crypto does not only concern currencies,” he said. “These must be new titles, they will start to tackle traditional products.”
The Executive Director, head of the South American Consulting Company’s financial services, noted that a new guardianship ecosystem is training, in which there could be many innovations. The journalist traveled at the invitation of the MBA Brasil 2022 conference.