The FTT crash did nothing to help that of Bitcoin, whose value was divided by four in one year. So, should we be worried if we have funds in virtual currencies? Not in the long term according to Jean-Luc Verhelst. “I think it’s a good booster shothe adds, however. For years, it has been said that you have to secure your cryptocurrencies and not depend on a trusted intermediary like a platform.”
To see this more clearly, imagine that FTX works like an exchange: if you want to buy 5 Bitcoins for example, the platform will put you in touch with a person who sells them. You then end up with a promise to withdraw this acquired sum on the day you request it. But in the meantime, these purchased Bitcoins are still in the hands of FTX. This is the reason why Jean-Luc Verhelst advises to recover them to place them in the blockchain.
Better to be extra careful. Because in addition to the lack of regulation, these platforms are also exposed to the risk of theft or fraudulent manipulation. Witness the hack that FTX suffered following going bankrupt, even if Binance is not left out with more than $100 million missing last month. As for the investors who trusted Sam Bankman-Fried, “they learn the lesson in a very difficult way“, concludes Jean-Luc Verhelst.
