On the 29th of November 2022, Cumberland came out on its Twitter account to share its thoughts. With all the factors affecting the crypto industry, it believes that regulators would cast the deciding vote for or against the Bull market.
Ultimately, the swing vote will be cast by regulators. We think that thoughtful, well-structured regulation will spur a Cambrian explosion of technological innovation and a secular bull market. Senseless and/or overly punitive restrictions threaten to do the opposite. –@jvb_xyz
— Cumberland (@CumberlandSays) November 29, 2022
The crash of FTX took a heavy toll on the crypto industry. Its global empire affected around $260 billion worth of assets, and the new CEO, John Ray, has said that the empire would either sell off its assets or restructure.
The FTX saga has already affected multiple projects and user morale, leaving the price of BTC at around $16k and ETh at about $1k. While we are all skeptical about the FTX development and how it would affect the state of things during and after the holidays, other factors can affect the crypto industry.
First of all, centralized blockchain projects are currently in trouble. With the FTX case, the concept of “not your keys, not your crypto” has been making the rounds in the crypto space. So we are bound to see more liquidation of centralized layer1 projects, with more bankruptcy filings over the coming months or years.
The exact period and its resulting effect are difficult to pinpoint, given how unreliable centralized balance sheets are.
On the upside, Bitcoin adoption is steadily on the rise. Countries like Lebanon have taken to using bitcoin and cryptocurrencies for their daily transactions and payments. They have also decided to utilize hydro-powered power sources as cheap electricity to power BTC mining operations.
Both Ethereum and Polygon have been accepted as reliable blockchain platforms for businesses. This has led to the creation of more than 53K decentralized applications on Polygon. Added to that, NFTs are still a thing, revolutionalizing the concept of ownership and transfer of said ownership.
With more partnerships with social media giants to utilize NFT technology, the possible utility and adoption are undeniable.
Banks are failing in certain countries, leaving many people unbanked. Yet cryptocurrencies can provide liquidity and financial solutions to such disadvantaged ones.
There are also new and exciting projects that users in the space are looking forward to enjoying. Unlike the 2018 bear market, users are less likely just to wash their hands off the crypto space.
Yet the swing vote would be cast by regulators.
Well-structured regulations would spur development, while senseless regulations are bound to affect the industry adversely.
