ARK Invest creator and CEO Cathie Wood is anticipating that the prominent implosion of FTX will be an advantage for one crypto sector.
Wood states in a Yahoo! Financing interview that the collapse of FTX and other crypto companies will increase decentralized financing (DeFi) networks.
“We do think DeFi will really get an increase coming out of this due to the fact that it’s so apparent now– decentralized and transparent is the method to go.
Those networks didn’t avoid a beat. All of their deals were finished, and there are all type of metrics stating they’re getting more powerful now.”
According to Wood, decentralized networks will end up being significantly essential in the monetary services market after the personal bankruptcies of FTX, crypto loan provider Celsius and digital possession hedge fund 3 Arrows Capital (3AC).
“I believe what we’re finding out due to the fact that of FTX is just how much more crucial completely transparent decentralized networks will be to monetary services moving forward.
FTX, Celsius, 3AC were all closed networks. Nontransparent systems. You could not see what was going on.”
Wood highlights users of decentralized networks had the ability to leave their trade positions and withdraw without a drawback after crypto rates plunged in the middle of the fallout originating from the crash of the central crypto companies.
“And what occurred, as they [centralized crypto firms] were decreasing, individuals who were on the completely transparent dispersed networks had the ability to go out scot-free.
They saw that was going what was going on. There were margin require those who were over-leveraged.
However the system worked. It didn’t avoid a beat. Those other business failed.”
Included Image: Shutterstock/Giovanni Cancemi/Natalia Siiatovskaia