Recently, Mary Pieterse-Bloem, Professor of Financial Markets at Erasmus School of Economics, spoke on BNR Nieuwsradio's investor panel about the news that crypto platform FTX imploded last week. What is the future of the crypto world?
Around €1 billion worth of crypto assets were stolen from crypto platform FTX. FTX's owner tried to bail out a number of other crypto companies, mainly through his trading house. However, his own trading house almost went under as a result. To save his trading house, funds were shifted from FTX to the trading house. FTX then got it very hard itself. As a result, many investors withdrew money, leaving 5 billion in customer money suddenly gone. FTX then filed for bankruptcy.
One of the biggest causes of this problem is that the crypto world is a heavily underregulated domain, Pieterse-Bloem said. Another problem is that there is very little value behind crypto, the Professor said. According to some crypto moguls, a fund would be a good solution to avoid this kind of situation. Moreover, regulation would be good. Pieterse-Bloem partly agrees with the latter: regulation would be a good thing, but often comes in very large packages and often comes too late.
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You can listen to full episode from BNR Nieuwsradio, 15 November 2022, here.Â