[Comparative opinion] FTX is not the Lehman moment in the coin industry

The subsequent effects caused by the FTX thunderstorm are significant. All FTX related entities have applied for bankruptcy protection and are involvedFTX US、Alameda Research134 subsidiary companies including Ltd. Other crypto giantsGemini,BlockFi, Genesis,Digital Currency GroupThey have also all been affected and are facing a crisis. Not only did the coin community compare this to a “Lehman hour,” US Treasury Secretary Yellen also said at the “New York Times” Dealbook summit two days ago, “This is Lehman hour in the cryptocurrency sector.”

But that's actually not the case.

At the time of the 2008 Lehman crisis, I was reporting live on Wall Street. Within a week at that time, Wall Street's top five independent investment banks disappeared, and the blueprint for the US banking industry completely changed. There has been a cliff-style decline in US stocks, and many people think that the US financial system will completely collapse. However, this time, after Three Arrows Capital,FTXAlthough many coin industry institutions were dragged down by the firestorm brought about, there was no fatal impact on the crypto market.BitcoinIt's still going strong.

From early November, when Coindesk reported that Alameda Research's financial situation triggered a crisis, until now, Bitcoin has dropped from around $20,000 to around $17,000 now.

In the coin industry known for its ups and downs, in the midst of such a crisis that shook the coin industry, the 15% decline was not insignificant. Bitcoin's performance can be said to be extremely steady.

“This actually further proves that a consensus has been reached on decentralization,” Han Feng, author of “Blockchain Wealth Theory,” told me. “Decentralization is far more robust than centralization.”

Han Feng further explained that the traditional financial core is centralized, so once something happens to the center, everything shakes up. Bitcoin, on the other hand, is a decentralized model and next-generation consensus, just like gold. An accident or theft in a gold vault will not affect the value and wealth consensus of gold. This system automatically formed by the market is robust and has a strong ability to survive in abnormal and dangerous situations.

“Traditional finance is not used to Bitcoin and does not accept total decentralization,” Han Feng said. “They think everything should be built centrally, and decentralization is unreliable, so they think that once the wind blows up, Bitcoin will die, and as a result, they are punched in the face time and time again.”

Although FTX is an exchange in the cryptocurrency industry, it is actually still a centralized financial institution. The FTX thunderstorm once again proved that centralized institutions cannot be trusted, while real decentralized public chains such as Bitcoin andEthereumAlso, most public chains have withstood the test; decentralized exchanges will be the direction of development in the future.

“I have always believed that decentralized finance is the future and is unbreakable.” Han Feng said.

Author: BitPushNews Susan Feng

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