The crypto ecosystem is following the trends in global markets. In the midst of the inflation era, we experience turbulence even in giant corporations. Since the collapse of LUNA, we have not recovered the wounds in crypto.
At the beginning of the LUNA catastrophe, we thought that LUNA was just a system that was not thoroughly integrated with the rest of the crypto bankers, lenders, and exchanges. Sad to admit but many centralized crypto services providers were directly affected by the fall of LUNA.
With the collapse of FTX, it becomes more obvious that there are a lot more crypto service providers that are likely to bankrupt as they are deeply exposed to FTX drama. Considering the scope of the crypto ecosystem, the FTX issue is more severe and dangerous if we try to foresee the possible consequences.
The Green Crypto Movement
Though it sounds like the adoption of Proof of Stake or, the better version that Hive uses, Delegated Proof of Stake systems, the green part is not about the technological side, rather, this part is about saving the crypto ecosystem from frauds and gambles that crypto service providers are in.
CZ felt ready to initiate the attack to FTX platform as he knew that the ecosystem needs to refresh itself to grow and evolve healthier. We were, maybe still, tricked the earn programs of several exchanges without thinking the reason why the people do not question the source of 5% - 10% APR for Bitcoin or Ethereum.
The Soul of Bitconnect Might Be Alive
It was easy to spot the scammers when you focus on unsustainable APR offered by them. Bitconnect was one of those platforms that was distributing money to old users after collecting them from new ones. Due to this scheme named as Ponzi structure, thousands of people lost their life savings.
There are speculations that Gemini Earn is likely to be insolvent and this may give birth to more issues in terms of the security of assets. Though Bitconnect was pretty obvious; zombie crypto service providers are not easy to understand if they can adjust their balance or not.
Green Crypto is Essential
The greener crypto movement is actually giving birth to the collapse of the companies that are not in a good shape but they pretend like they have been doing fine. Basically, the jungle rules, in which the stronger ones survive and evolve, will be applied once again in the crypto ecosystem.
When the next bull-market comes, we need to have trustworthy centralized exchanges aside from decentralized and more secure options. Just do not forget to save your cryptocurrencies in cold wallets.
Hive on!
Posted Using LeoFinance Beta