Crypto Shake Up to lead to mainstream adoption and growth

Crypto Shake Up to lead to mainstream adoption and growth

Crypto currency has struggled to take hold over the past few years despite heavy financial backing and market confidence purely based on a multitude of failed and scam projects.

While the scams and failed project only account for a small amount of the sector, their impacts have been wide ranging and undermine the overall confidence in the market.

At the centre of most of the scams are the enablers. Now enablers in this context aren't specifically those who help them to undertake the scams and are not often even involved.

The current system enables the scams to exist because there isn't as much in place to action and stop a scam once it is undertaken. The Decentralised nature of crypto enables people to transfer stolen funds to exchanges and easily exit the market with their financial wins.

Live View Bank Run

The open and transparent nature of blockchains enables people to watch their money once stolen be transferred all over the place to different wallets and in most cases to an exchange where they can than be sold and fiat withdrawn.

Over time some chains have taken measure to freeze wallets but more so quits often once you have experienced this you're not getting your funds back.

Scams aren't the only issue though as some codes that hold millions of funds just break and this can result in millions of lost finances.

In recent time regulators have focused crypto exchanges as a point of accountability. But efforts so far haven't been as successful as first thought. As more people have lost funds this has resulted in a hardened approach from regulators especially after the FTX debacle.

Shift to mainstream

Currently banks and brokers are moving to mainstream adoption and have been over the past few years with many amassing large portfolios of a number of different digital assets. They've also been working with policy makers to sought out legalities.

While this information isn't new it appears on the surface to be quite stagnat. However, it's much of a slight of hand when coupled with what is occurring in the broader markets and who is being targeted for compliance and legal issues.

With more people investing in crypto as an alternative investment market, governments needed to do something to bring it under control. While first turning a blind eye as many stated that it was 100% free market, under the surface, it might not actually be that way.

Crypto market manipulation has been occuring for quite some time and tactics used are not new and used to be used on traditional markets until regulations were tightened. While it can't ever be completely prevented there are measures that can protect people within limits.

Prepare for the final showdown

Regulators hand have been shown and we're in the final phase of the clean up and unfortunately for CZ, Binance CEO things aren't looking good for him as the SEC Charges Binance with multiple legal breaches. This is important move because Binance is a powerhouse and has a lot of money from long term trading and a large client base.

To take action on the sector's largest is a gutsy move but it appears the SEC is ready to transition from centralised exchanges to brokers, multiple registered retailers and a system that is potentially backed by banks and government.

Careful for the next few months as we may say one last crypto winter before the sector is brought undercontrol.

Are you ready?

image sources provided supplemented by Canva pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.