2023-03-25 19:26:08
Coinbase: "Cryptozyme could last all of 2023"In their forecast, cryptocurrency exchange Coinbase experts rely on the fact that a significant amount of funds of large institutional investors have been blocked indefinitely in the accounts of FTX Group and its controlled companies. At the same time, a number of cryptocurrency market participants have already faced a liquidity crisis and mass customer flight.
According to Coinbase analysts, the negative situation around FTX and the problems of its direct clients is only the visible tip of the general decline of retail and institutional investors' interest in digital assets.
In reality, the problem seems broader and more fundamental, and "second-order effects" - closures or temporary shutdowns, changes in strategic priorities of crypto market participants - make it doubtful that cryptozyma will end before the end of 2023.
Fears of possible "contagion" have led to a huge underutilization of the total value invested in crypto projects. The liquidity available to the crypto market remains scattered in blockchains, stacking pools and applications because their operators do not use or are afraid to use shared resources.
In practice, fragmented liquidity becomes a barrier to institutional participation because it leads to inefficient pricing and slippage in large transactions.
Coinbase believes crypto investors' preferences are negatively impacted by FOMO and the media hype surrounding FTX Group, and against this backdrop, they are likely to turn their attention to more traditional financial instruments.
The other day, the CEO of cryptocurrency exchange Coinbase, Brian Armstrong, urged users to vote for political candidates who support the crypto industry to counter the U.S. SEC.
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