Indodax CEO: The FTX Phenomenon Influences On The Ups And Downs Of Crypto Prices

The phenomenon of crypto in 2022 affects the ups and downs of Crypto prices (photo: Ist)

JAKARTA - The phenomenons regarding massive cryptocurrencies occur in 2022, greatly affect the ups and downs of crypto prices.

Especially when there was an FTX case that occurred some time ago. It really affects the crypto market in 2022 which is in the bearish phase. To date, investors don't know which institutions are putting their money in FTX.

Indodax, as the industry player and the first local crypto exchange in Indonesia, also gave his opinion on the phenomenon that Indodax passed in 2022.

Indodax CEO Oscar Darmawan said that 2022 is the year the crypto market is in a winter phase. The lesson that Indodax takes from the phenomenon in 2022 is that every exchange needs to maintain the trust of members.

"Business exchange itself is only a place to bring together buyers and sellers. Thus, customer money should not be touched at all," Oscar said in a statement received by VOI in Jakarta.

According to him, the exchange that does not touch the member's money will be a defense exchange and will not experience liquidity difficulties.

This is evidenced by the existence of good proof of recovery and proof of responsibility. So that if there is a trade by customers, the exchange will continue to run solidly.

Not only that, regarding the market that experienced a bearish phase in 2022, Oscar argues that if viewed historically, the moment crypto is down is the right time to accumulate cryptocurrencies and to sell later when prices rise.

Oscar also invites crypto traders to start accumulating cryptocurrencies with dollar cost averaging in the pre-halving period as the most appropriate time to buy crypto because there is a potential increase after the bitcoin haloking that will occur in early 2024.

"This is similar to what happened in 2014 which happened to the largest exchange at that time, namely Mt Gox. When Mt Gox was bankrupt, many other exchanges were dragged along because many of the stock exchange assets were stored there and could not be disbursed from Mt Gox," he explained.

Oscar added that the FTX and Mt Gox events were systematic and domino. Oscars also estimate that Q1 and Q2 2023 traders can see the overall damage from FTX.

"Seeing its influence on crypto exchanges, as long as the crypto exchange runs conservatively, aka just as a place to bring together sellers and buyers and not place customer assets elsewhere, this FTX case will not greatly affect the fall of an exchange," Oscar explained.