According to cryptocurrency trading company Cumberland, the collapse of FTX last week will lead to substantial changes in market structure, including a departure from the all-in-one platform centralization model.

Cumberland’s Head of Trading, Jonah Van Bourg, said that the different aspects of cryptocurrency spot trading have been moving toward a paradigm of centralized, all-in-one platforms. Van Bourg specifically referred to lending, clearing, custody, and settlement.

According to Van Bourg, the cryptocurrency market structure will likely resemble foreign exchange markets. In foreign exchange markets, assets and capital are not kept on centralized exchanges.

The collapse of FTX is an undesirable consequence for any crypto company. Currently, the exchange has no further information on the number of remaining customer holdings.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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News

Cumberland: FTX Bankruptcy Triggered Some Important Market Structure Changes

According to cryptocurrency trading company Cumberland, the collapse of FTX last week will lead to substantial changes in market structure, including a departure from the all-in-one platform centralization model.

Cumberland’s Head of Trading, Jonah Van Bourg, said that the different aspects of cryptocurrency spot trading have been moving toward a paradigm of centralized, all-in-one platforms. Van Bourg specifically referred to lending, clearing, custody, and settlement.

For some time now, the various functions of crypto spot trading have been trending toward a model of all-in-one platform centralization: liquidity, clearing, settlement, custody, and even lending were coalescing under a very limited number of roofs.

— Cumberland (@CumberlandSays) November 14, 2022

According to Van Bourg, the cryptocurrency market structure will likely resemble foreign exchange markets. In foreign exchange markets, assets and capital are not kept on centralized exchanges.

The events of last week triggered a handbrake turn, and while it’s still too early to predict, crypto market structure now seems likely to mirror FX – a world where assets and capital aren’t parked on centralized exchanges.

— Cumberland (@CumberlandSays) November 14, 2022

The collapse of FTX is an undesirable consequence for any crypto company. Currently, the exchange has no further information on the number of remaining customer holdings.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

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