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Turning back from our almost one month stay during November in South Africa, our beloved travel country, I was heavily chocked by the events on the crypto markets. During our stay I had promised my wife not to follow the news in these areas.
But looking at internet I read the various articles and blogs on the FTX crypto exchange collapse and the negative reactions throughout the crypto space. These events will of course have their impact on the various trends in the blockchain and crypto markets
in 2023 and beyond. So let us start.
1. The crypto markets will further undergo the impact of the recent FTX collapse
Meanwhile the shock waves of the collapse of one of the biggest crypto exchanges make it still feel throughout the whole crypto sector. It affected the credibility and trustworthiness of crypto as a reputational asset. It also brought the dangers inherent
in the cryptocurrency space, cementing the vision of an insecure landscape and acts as a barrier to the growth of the industry.
This time trust has fallen to an all-time low greatly reducing the interest among retail investors as well as institutions and financial players alike in the crypto markets, causing many crypto currencies to fell sharply.
It also caused an increased number of crypto firms being crashed or confronted with liquidity problems, while other distressed companies could be entrained by the fall of FTX. As a result the total crypto market capitalization has dropped from $ 3 tn to
$821 bn as of the end of November.
Expectations are for a new tough and volatile 2023 for many in the crypto industry. Investors remain much more reluctant to enter the crypto market as long as there is no clearness on crypto regulation. This will heavily restrict the sprawling crypto ecosystem
known as decentralized finance (DeFi) as well as the NFT market, that were booming segments in recent years. As a result a growing number of crypto firms will get into trouble.
2. The collapse will pop up…
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