The co founder of ETH competitor Armano (ADA) warned investors that the recent collapse of the data encryption trading center FTX will bring more adverse effects.

In today's video version update, Cliff Hoskinson indicated that the collapse of FTX is likely to make due process formulate a new policy and regulation for the digital currency field.

Hoskinson indicated that FTX did not fail in its encryption algorithm itself, but failed in the construction of its nearby defective centralized infrastructure.

"Cryptocurrency has not been unsuccessful. We have not succeeded. We are under the influence of trust. In the end, although we like to firmly believe in the basic principles of cryptocurrency, all these are related to the intermediate trading center for capital distribution and the department that authorizes intermediate enterprises to do something on their behalf.

This is the enterprise that we are trying to solve with cryptocurrency indoor space. Unfortunately, it can be confused now, and it is very likely that a new law will be formed. Unfortunately, it is a decent law, but it may not be easy. "

Hoskinson indicated that the adverse effects caused by FTX will have a chain reaction, which will well harm another data encryption enterprise. He pointed out that this hazard may cause the US data encryption enterprises to have to comply with strict new regulations.

"Unfortunately, if you still don't know what you are doing to get people into positions of power and recognition, which leads to chain reaction and devastating adverse effects, this is a bad effect. That is just the tip of the iceberg. If you look at the financial relationship of FTX, when we look at it, it may lead to a series of failures. Unfortunately, cryptocurrency cannot be assisted, but our competitors do

We have not received [assistance]. We just got the right to eliminate the hot potato, and then we were accused of having to solve the accounting conclusion ourselves. Now, I firmly believe that it is not easy to kill cryptocurrency. I firmly believe that our own market will be stronger in the future, and I firmly believe that we have just begun a better life

[FTX] It will eventually become the straw that will overwhelm camels, and change the working status of cryptocurrency in the United States at least in the short term to the middle and late stages. In particular, it affects the appetite of due process for granting rights beneficial to the field.

We can see that the United States will no longer allow the world of non deposit wallets. We can see a world where all cryptocurrencies except BTC are also labeled with security labels and have to comply with complicated requirements, which will take away their liquidity. "

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