Charles Hoskinson shared his opinion on the current ongoing critical situation with the FTX crypto exchange.
Charles Hoskinson is the founder of Cardano blockchain and CEO of the Cardano developer team IOHK. In the early phase of his career in the crypto world, he was in the Ethereum project but later he left the Ethereum project & launched Cardano as a rival of the Ethereum blockchain.
On 9 November, Charles Hoskinson shared his point of view on the current crisis going on with the crypto industry along with the FTX exchange, During a Webcast on his YouTube channel “Charles Hoskinson”.
Hoskinson said that it may be the last phase of this down cycle of this crypto sector because now there are no more crypto companies like FTX, Alameda or Three Arrow Capital, etc. But at the same time, he admitted that it is still hard to predict the degree of the loss which can occur because of this ongoing situation with the FTX exchange.
“I think this might be the bottom, one of the last ones to deal with. It’s going to be hard to predict how bad it will be, and it could certainly potentially be very bad.”
However, the whole crypto community knows very well that such kind of situations are very rare to happen with any crypto company but still Hoskinson believes it was fixed to happen, which can be compared with the 2021 crypto bull run cycle.
Cardano founder explained that the crypto market faced a huge downfall in 2017 & 2018 after the end of the ICOs era Bull run. And also he was reminded about these risks over the last 12 months following the 2021 bull run.
“I repeatedly warned people about in 2021 and throughout this year, in part before points in my career, like in 2017, with ICO mania. You don’t get something for nothing in extremely high yield; it tends to evaporate very quickly.”
Further, Hoskinson noted that such situations can’t be solved easily by only the acquisition of collapsed platforms by other better platforms, instead, many things will go through the crypto ecosystem where new regulation policies & enormous scrutiny will come.