Julian Hosp: FTX collapse will revive interest in decentralized finance

The co-founder and expert of the blockchain company DeFi Chain reads that the collapse of FTX dealt a serious blow to the industry, and without active work, the crisis could drag on.

Julian Hosp stated that the problems of the FTX cryptocurrency exchange will provoke a loss of trust in all centralized cryptocurrency platforms among users and investors. And, therefore, will revive people’s interest in decentralized finance (DeFi) and related products.

Users who do not yet believe in the sufficient strength of the DeFi ecosystem will switch to self-custody of digital assets. Current events, until they die down, says Hosp, will scare off potential cryptocurrency users who have not yet immersed themselves in the industry. The expert believes that this may take quite a long time.

According to the expert, a decrease in prices for cryptocurrencies should be expected in the coming months. The industry needs a cure that only it can provide. At the same time, one should not assume that the cryptocurrency market, which has experienced many upheavals before, will get out even now – the collapse of FTX was a serious blow to the entire ecosystem, and if it does not activate its forces, then the crisis may drag on for a long time.

Now, according to the co-founder of DeFi Chain, it is necessary to assess how FTX and Alameda were connected with other companies – then it will be possible to understand the secondary consequences of the collapse of the crypto exchange. However, it is not possible to accurately assess the scale right now, the expert believes.

Earlier, SK Zheng, co-founder of cryptocurrency hedge fund ZX Squared Capital, said that the interest of institutional investors in the cryptocurrency industry will not be shaken by the collapse of FTX.