Crypto Companies Rebuild Trust After Turbulent 2022 Events8. January 2023
• Companies in the cryptocurrency and blockchain space are taking steps to build trust in their products and services in the wake of the collapse of FTX, Celsius, Three Arrows Capital and the Terra ecosystem.
• The events of 2022 saw weekly-realized losses peak at $20.5 billion, according to a Chainalysis report released in December of that year.
• Dan Morehead of Pantera Capital noted that the failure of these companies had nothing to do with blockchain technology and that protocols like Bitcoin continued to operate as intended.
The year 2022 saw significant turbulence within the cryptocurrency and blockchain ecosystem. This was largely due to the collapse of major crypto-related firms such as FTX, Celsius, Three Arrows Capital and the Terra ecosystem. According to a report released by blockchain analytics firm Chainalysis in December that year, these events resulted in weekly-realized losses of up to $20.5 billion. This included a peak of losses of $33 billion following the depegging of Terra’s stablecoin, Terra USD Classic (USTC).
The aftermath of these events has caused much criticism both inside and outside of the crypto industry. Despite this, companies within the space are continuing to build and release products and services, with a focus on regaining trust amongst users. Dan Morehead, chief operating officer at Pantera Capital, highlighted this in a Dec. 19, 2022 letter to investors. He stated that the failure of these companies had nothing to do with blockchain technology, and that protocols like Bitcoin were operating as they should.
In order to build trust within the cryptocurrency and blockchain ecosystem, many companies are taking steps to ensure their products and services are of the highest quality. This includes introducing better security measures to protect user funds, providing transparency and clear communication with customers, and offering customer support services. Additionally, companies are engaging in more rigorous testing of their applications and services to ensure they are up to industry standards.
The events of 2022 were a major setback for the crypto industry, but the companies within the space are continuing to work hard to ensure their products and services are trustworthy. Through better security, transparency, communication, and customer service, companies are taking steps to regain the trust of users and investors.