The long standing bear market has made people skeptical about crypto. They are losing confidence and we have to do something… FAST. And, we are not the ones saying this but you heard it from the Winklevoss twins.
The Gemini crypto exchange founders, commonly known as Winklevoss Twins, said that people are losing confidence in crypto and investors no longer want to invest in it especially after the shut down of QuadrigaCX. They are now demanding US regulators to make cryptocurrency a safe place for investors. They said:
“There are a lot of carcasses on the road of crypto that we’ve seen and learned from. At the end of the day, it’s really a trust problem. You need some kind of regulation to promote positive outcomes.”
The jolt was faced after Canada-based crypto exchange announced its shutdown this December. The unexpected death of it’s chief executive Gerald Cotten died unexpectedly with the keys of $194 million crypto wallets. As a result company lost it’s clients and that has shaken many of its investors beliefs.
The Double Trouble can spot only trouble
The Twinklevoss twins could be right about this but one incident cannot spark a negative trend. Crypto has been out there for a considerable amount of time and one event will not manifest into the decline of it. There is no proof. The twins seem to implying that the QuadrigaCX would undo the crypto adoption. When they should really be educating people to work smart and not hard.
Safeguarding your assets should be any investors utmost priority especially if you are in the crypto business. Hacks are lethal and they cannot differentiate if you are regulated or unregulated exchanges.
The reason why QuadrigaCX users had to face such a fate was because they placed their trust in the exchanges. The main reason why bitcoin was made was because Satoshi Nakamoto did not want people to place their trust in a centralized entity. The likes of QuadrigaCX such as BitStamp ($1.43 billion), BitFinex ($900 million), BitGrail ($170 million), CoinRail ($40 million) have all suffered due to this reason.
Most of the investors trusted the exchanges and here we are we so much money lost all for nothing. These exchanges continue to control users’ assets, and that is where the core problem lies.
The reason why people go to centralized exchanges is because they have no other option. And, till the time decentralized exchange projects (DEX) are able to catch up and handle large number of volumes as well as get supporting features like margin trading, investors will have to restrict the use of centralized exchanges and try not to put a lot of money on public wallets.