Shibetoshi Nakamoto, the inventor of Dogecoin (DOGE), the world’s largest meme coin, made new statements. Shibetoshi assumes that if Binance or Tether crashes, the market will witness a “major mega market crash.” Here are the details…
Comments on the market crash from the founder of Dogecoin
Dogecoin’s Shibetoshi Nakamoto believes that the collapse of crypto exchange Binance or stablecoin issuer Tether could seriously destabilize the entire industry. He thinks the collapse will “end most of the game”. He also told people to do proper research before entering the cryptocurrency space. He recommended that they try to understand the industry characteristics.
Billy Markus, the inventor of the meme coin Dogecoin, better known as Shibetoshi Nakamoto. The American software engineer also noted that more and more people are realizing that too much centralization is a “big weakness”. While he said that awareness was good, he added, “that was also the case when you bought it.”
Expectation of “mega-crash”
Jack Dorsey, the former CEO of Twitter, was among those who agreed with Shibetoshi’s assumption. He said such a potential meltdown would undoubtedly “signify the game over.” Still, the DOGE creator said the potential collapse wouldn’t necessarily mean the “death of cryptocurrency.” He believes it will trigger a “major mega-market crash.” Almost every crisis in the past, including the recent fiasco with FTX, as we reported on cryptokoin.com, has led to severe market crashes and panic among crypto participants.
The uncertainty has also caused critics to declare Bitcoin “dead”. The primary cryptocurrency is still in the market despite more than 460 “dead” ones. It continues to expand its presence in the world. It is becoming a legal currency in troubled economies such as El Salvador and the Central African Republic. Meanwhile, many investors see the asset as a hedge against inflation due to its limited supply.
How are other exchanges doing?
Some market participants expected the FTX crisis to create a domino effect and plunge other exchanges into the swamp. The largest cryptocurrency platform Binance has ensured that its balance sheet is stable. It has even raised its “Secure Asset Fund for Users” (SAFU) to $1 billion to protect customers in emergencies.
In addition, the company has launched an industry recovery fund that can assist projects in distress during turbulent times. To further mitigate the cascading negative impact of FTX, Binance is creating a recovery fund to assist projects that are normally strong but in a liquidity crisis. On the other hand, Coinbase also shared a blog post stating that there is no shortage of funds.
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