Why the collapse of CeFi institutions proves crypto’s core pillars
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The crypto space endured a series of unfortunate events in 2022, beginning with the Terra debacle and ending with FTX’s chaotic death spiral. These events heightened consumer skepticism and hesitancy toward crypto platforms; yet, the industry is holding steady today. The market is even trending upwards at the time of writing.
Crypto’s current potential trajectory toward a recovery signals two key takeaways: The space is resilient and here to stay, despite multiple setbacks. Secondly, centralized, or CeFi entities (such as exchanges or trading and lending platforms), have proven they can be a weak link and we must find ways to address their shortcomings.