Cardano (ADA) creator Charles Hoskinson warns that the FTX crypto exchange fiasco is likely to have negative implications for the digital asset industry.
In a new video, Hoskinson says that while the liquidity troubles facing FTX won’t directly affect the Cardano ecosystem, they will “cause issues” for the crypto industry.
“Effectively speaking, this [FTX’s insolvency] does not directly impact the Cardano ecosystem. But as members of the broader cryptocurrency space, this will likely cause issues for all of us.”
According to Hoskinson, FTX’s potential failure is likely to attract more scrutiny to the crypto industry.
“In particular, there is the case that FTX has been lobbying very heavily in Washington, D.C. Their failure could change the political landscape in unpredictable ways…
The issue here is that should we see more systemic failures, there could be a belief for more regulatory scrutiny or more draconian laws to be passed to enable that scrutiny.
The failure of FTX could result in that which could in turn badly damage the industry or in many cases offshore the American crypto industry. So this is not a minor event.”
On Binance’s reported intentions to acquire FTX, Hoskinson says that the collapse of the plan would be catastrophic for the crypto industry.
“It’s hard to know what’s going to happen next. If the Binance acquisition goes through, there’s a possibility that the markets can stabilize and that things will look good. Or at least calm. And we can move on and continue to heal as we were doing before this event.
If the acquisition fails, there’s a possibility that a series of cascading failures will occur and because of a lack of transparency, it is very difficult to know how deep these tentacles go. And it is entirely possible that other firms that were reliant upon FTX could also fail.”
Binance walked away from a deal to acquire FTX yesterday, according to a Wall Street Journal report.
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Angelatriks
The post Cardano Creator Charles Hoskinson Says FTX Implosion Will Cause Issues for Whole Crypto Industry – Here’s Why appeared first on The Daily Hodl.