FTX Crash Raises Concerns About Crypto Safety
The bankruptcy of the crypto exchange FTX, as well as the subsequent investigation against its founder Sam Bankman-Fried, has caused concern among investors. Many ordinary investors are questioning the safety of investing in crypto.
However, branding and marketing expert Vanessa Lau says that the collapse of one exchange does not mean that crypto is over.
“Crypto is a growing and innovative technology, and while it is volatile and carries some risks, it is not going away,” said Lau. “In fact, many people argue that the collapse of FTX was a failure of centralization and not of crypto itself.”
Lau, who specializes in helping entrepreneurs and content creators build brands and businesses, says that crypto has huge potential for the future.
“The potential in the space is huge. Blockchain technology allows us to build software without centralized control. Big Tech companies like Google and Amazon are taking notice because they could face disruption,” Lau said.
That being said, there will always be bad actors. That’s why Lau cautions against keeping large sums of money in centralized exchanges. Instead, they should consider decentralized exchanges (DEXs), hot wallets, hardware wallets, or paper wallets, which allow for self-custody in crypto assets.
“It’s important to remember the phrase ‘not your keys, not your coins,” said Lau. “If an exchange does not allow you to control your own private keys, you are giving them custody of your crypto.
Huge Potential in Metaverse, NFTs
Lau has also been looking into the potential of non-fungible tokens (NFTs) and the metaverse as opportunities for marketers.
“NFTs and the metaverse are exciting and innovative areas that have a lot of potential for marketers and content creators,” said Lau. “There are so many possibilities for creating unique, engaging experiences for users, and I think we’re just scratching the surface of what’s possible.”
NFTs have had a rough 2022, with sale volumes and prices dropping over 90%. Moreover, Meta (formerly Facebook) dropped more than 60% since its rebrand to focus on the Metaverse. However, these slumps don’t take away from the potential of these technologies, Lau says.
“NFTs and the metaverse are exciting and innovative areas that have a lot of potential for marketers,” said Lau. “With NFTs, marketers can create unique, one-of-a-kind experiences for users that are backed by the security and immutability of blockchain technology. This opens up a whole new world of possibilities for creating engaging content and building strong, loyal communities.”
According to Lau, the metaverse, which is a virtual shared space where users can interact with each other and with digital content, also offers a lot of potential for marketers. “In the metaverse, marketers can create immersive, interactive environments that allow users to engage with brands in a whole new way,” she said. “This could include virtual events, product launches, or even just casual hangouts where users can connect with each other and with the brand.”
While the FTX crash serves as a reminder of the risks involved in investing in crypto, experts like Lau believe FTX e that the technology has a bright future and that there are ways to invest safely in it.
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