Cardano’s Charles Hoskinson Addresses FTX Fallout

It’s just been revealed that Cardano’s Charles Hoskinson is addressing the fallout of FTX. Check out what he had to say about the matter below.

The Cardano founder is warning investors that there will be more fallout from crypto exchange FTX’s recent collapse.

In a new video update, Charles Hoskinson said that the disintegration of FTX may push lawmakers to bring about new regulations for the digital assets industry.

Hoskinson says that FTX was not a failure of crypto itself, but of flawed and centralized infrastructure that was surrounding it. .

“Crypto didn’t fail. People failed. People in positions of trust. At the end of the day, as much as we like to believe in the principles of cryptocurrency, this had everything to do with people putting their money in centralized exchanges and organizations entrusting centralized businesses to do something on their behalf.”

He continued and said the following:

“That’s the very industry we’re trying to get rid of with the cryptocurrency space. Unfortunately, it’s going to now be conflated and there’s a very high possibility that the fallout of this will be new legislation, hopefully decent legislation, but there’s a strong possibility that it won’t be.”

The CEO of the world’s largest crypto exchange is revealing why the potential deal with former competitor and bankrupt firm FTX failed to go through.

During an interview at the 2022 Indonesia Fintech Summit, Changpeng Zhao said that rescuing FTX from bankruptcy did not make sense for Binance from both business and legal standpoints.

“From our perspective, the deal did not make sense from a numbers front. From a financial perspective, it’s a big hole. From new users, we have very high overlap. We cover all the regions they cover, and they have much less users than us. From a technology or product perspective, I think we have a superior product. They don’t have anything that we don’t have.”