Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF) says it believes the FTX debacle could be an inflection point for the blockchain and cryptocurrency industry.
In a statement issued alongside the results of its annual shareholder meeting, the company said neither the company, its investees nor its advisory clients were directly exposed to the collapse of FTX, but Chairman Malcolm Pare said: Provided comment to investors following the crisis.
“We expect the impact of this unfortunate event to bring further uncertainty to the broader digital asset market, at least in the short to medium term,” said Palle.
“The story is still unfolding, but from what has been revealed so far, the FTX debacle is a combination of risk management, investor identification and due diligence, community scrutiny, and overindulgence by certain Silicon Valley funds. and their advisors assisted young and inexperienced founders who ostensibly seemed to tick all the right boxes for the purpose. I have.”
He added: Oversight of centralized digital asset exchange trading and lending practices. ”
On the other hand, Palle explained that the centralized exchange model operated by FTX and others relies on traditional financial technology, and such exchanges “effectively operate in a black box mode. “When customer funds are deposited into multiple exchange accounts, tracking becomes difficult.” and wallet. ”
“While we hope that this unfortunate event will trigger an accelerating push globally towards the design and implementation of better practices in the digital asset industry, it will undoubtedly take time for this to happen. .”
Regarding Coinsilium’s own business, Coinsilium said it had £1.1m of cash in the bank and a healthy cash position of around £1m. £1.3m crypto reserves (mainly held in Bitcoin and Ethereum).
“We continue to manage our resources pragmatically and our current priorities remain to stay on the right side of this difficult market cycle and be ready to resume our impetus for growth when the cycle turns. A positive market environment prevails,” Palle added.