Sara Feenan left her career in finance to join the world of cryptocurrency in 2017. She was excited to be a part of a movement that promised to revolutionize various industries. However, after the downfall of the FTX exchange and the subsequent fallout in 2022, Feenan found herself out of a job and became disillusioned with the crypto industry. She now works at a non-crypto fintech startup in London.
The skepticism and suspicion surrounding the asset class has never been thicker than in the months following the FTX collapse and the upcoming trial of its leader, Sam Bankman-Fried. Bankman-Fried is facing charges for what prosecutors allege to be one of the largest financial frauds in US history. Despite the rebound in Bitcoin’s price this year, the market has experienced a significant decline, with trading drying up and non-fungible tokens losing value.
The venture capital world has also become less willing to invest in cryptocurrency and blockchain projects, resulting in a decrease in VC deals in the industry. Additionally, job opportunities in the sector have been diminishing. Many companies are struggling to attract investors and keep their operations running while waiting for capital to return to the space.
The post-FTX era has presented numerous challenges for those involved in the cryptocurrency industry. Startups face difficulties finding advertising platforms and investors are cautious due to the FTX scandal. Lawsuits and legal proceedings have also become more prevalent, affecting companies such as Genesis Global, Celsius Network, Voyager Digital, Three Arrows Capital, and BlockFi Inc.
Despite these challenges, some industry experts see a silver lining. The courts have shown optimism towards cryptocurrency, which has helped stabilize prices. The industry is also becoming more institutionalized as major financial players show interest in Bitcoin ETFs and blockchain projects. Feenan, the former crypto enthusiast, is not completely deterred and is open to returning to the industry if an interesting opportunity arises.
In conclusion, the cryptocurrency industry has faced significant challenges following the downfall of FTX. Skepticism and legal issues have plagued the market, leading to a decline in trading and investment. However, there is cautious optimism for the future as the industry becomes more regulated and institutionalized. Individuals like Feenan remain hopeful that the industry will continue to innovate and evolve.
Credit: The Star : Tech Feed
