According to Brett Harrison, the President of crypto exchange FTX US, this crypto winter is similar to others. Harrison believes that the investments of venture capital firms into digital assets will “bring the crypto world back.”
Harrison agreed that the current market condition is not ideal. However, he stated his belief that this crypto winter is similar to others in the past. In the future, the industry will overcome these issues.
A Flow of Capital Can Boost the Crypto Sector
Following an array of economic factors, the crypto market has declined significantly over the past month. This past weekend, BTC’s price dropped below $18,000, a low we haven’t seen for about 18 months.
However, Brett Harrison does not seem overly concerned with this negative trend. During a recent interview with CNBC, Harrison argued that these bear markets are nothing new. In the past, bitcoin has managed to overcome dips and rise to new heights.
The FTX US President further stated that this crypto winter is similar to others that happened in recent years. This includes the winter experienced in 2018. Harrison believes that a propellant for a new bull market is likely to be found in venture capital firms, which have begun to deploy significant sums into the crypto sector.
“We still have an enormous amount of venture capital flowing into crypto, which we think will bolster the ecosystem as these companies come out with new products and new services, and that will eventually bring the crypto world back.”
Additionally, Harrison pointed out BTC’s general nature as well as the fact that governments and central banks do not control it. Instead, it is a new store of value that people are able to “safely and instantly” transfer anywhere in the world.
The Goals and Ambitions of FTX US
In May 2022, Harrison stated that FTX US will seek approval from the Commodity Futures Trading Commission (CFTC) to offer ETH and BTC futures options to American clients. According to Harrison, this initiative has the potential to improve the company’s profits.
“For most clearinghouses today, margin is done once per day, five days per week. We’re proposing to do this real-time, every 30 seconds, 24/7, and that is a novel aspect of our application.”
In discussing the CFTC, Harrison described the organization as a watchdog with principles aware of digital assets. He went on to say that the conversations have been positive thus far. This raised hopes of a successful outcome.
Before this, FTX US also launched a stock-trading service among a limited number of users in the U.S. Down the line, they plan to offer this opportunity to all U.S.-based customers.
Featured image courtesy Barrons