Today the capitulation of FTX took place. The crypto exchange has in fact declared bankruptcy and has filed an appeal in the United States for Chapter 11.
Eric Demuth, CEO and co-founder of Bitpanda, he remarked how the collapse of FTX will do a lot of harm to investors, but also to legitimate crypto companies. “It will hurt now and it will hurt for a long time. I hope this is a wake-up call for our sector and for all people, an invitation to study carefully who to entrust your money to. I hope you remember this moment and decide to say enough to those who pretend to be a spokesperson for our sector. Enough with wild west-style unregulated companies, which try to artificially inflate themselves by playing with users’ funds ”.
“The world of cryptocurrencies is populated by innovators. Attract those who believe that technology has the power to change the world. Attract those who want to build new companies with that technology. But it also attracts those who are willing to play dirty with the rules and common sense to present themselves as a parody of the idea of the crypto pioneer “, asserts Demuth, who adds:” There are people who are happy to build crypto products by taking shortcuts and maximizing profits. These people don’t understand the ideals, principles or vision that make cryptocurrencies what they are, or they don’t care. And unfortunately, in the eyes of many, they are the same as us. When they fail, we all suffer ”.
Bitpanda CEO urges cryptocurrency investors to stop trusting false promises, stop trusting appearances and stop following the hype. “This isn’t a game, it’s your money. Stop letting these people get away with it. Choose a company you know, choose a company you trust, choose a regulated company, even better if regulated locally. You wouldn’t put your salary in a Bahamas-based bank, so stop depositing your assets there. And especially, do not invest in an exchange where funds and assets are not completely separate and accessible 100% of the time “.
Demuth then explained how it is in Bitpanda chosen to acquire licenses and the activity is monitored by various financial market authorities. “These choices made it more expensive for us to operate, but we made them for the same reason we make all our business decisions – it was the right thing to do. You would not take these risks with any other financial institution, do not accept them for your investments ”.
“We founded Bitpanda because we believe in digital assets. We know they play an important role in the future of finance. We are the most regulated platform in Europe, with the largest number of licenses, our infrastructure is stable and we are offering it to other fintechs and banks. Our users’ funds are safe and we are always online. We are here if you need us. We will overcome all of this. We are here for the long term! ”, Concludes the top manager of the Austrian platform.