StrikeX

Following the dizzying heights of the 2021 bull run, 2022 has been a torrid year for cryptocurrencies and the wider financial markets. Geopolitical conflict, the decade-long war on inflation and the subsequent cost of living crisis have culminated in sending markets tumbling. Nowhere has this lull in confidence had such a knock-on effect, quite like the cryptocurrency markets. But why? During such turbulent conditions, crypto infrastructure is put to the test. There is no questioning the innovative potential of the underlying blockchain technology in this space, but serious doubts arise around the businesses behind the technology, from crypto-lending protocols to centralised exchanges — A bear market makes light work of exposing weaknesses. Event 1 The first major casualty of this year’s bear market was that of Terraform labs. Their network’s algorithmic stablecoin; UST (unlike USDT or USDC) was not backed with tangible assets, but by its sister token; Luna. On May 7th, 2022, $2 Billion of UST was taken off the protocol causing UST to dip to $0.91. Arguments remain about whether this was a reaction to increasing interest rates or due to a malicious attack, regardless, this action exposed a fundamental flaw in the entire protocol, and Terra’s peg was lost. The entire ecosystem collapsed. This collapse wiped $300 Billion from the crypto market, resulting in the bankruptcy of leading crypto lenders such as Celsius and Voyager, the liquidation of Three Arrows Capital and the loss of many people’s life savings.Event 2 Fast forward to November 2nd, Crypto news website; Coindesk, released findings that the trading firm Alameda Research; the sister company of the $32 Billion-dollar valued cryptocurrency exchange; FTX, holds a $5 Billion-dollar position of FTT; their native currency. This triggered speculation on the solvency of both companies. As a result of this uncertainty, the world’s largest cryptocurrency exchange; Binance, publicly announced they would be selling their $523 Million FTT position based on risk management learnt from the Luna collapse earlier in the year. This event helped drive the price of FTT down by 80%, and a run on the FTX exchange began. $8 Billion dollars of withdrawals were requested in the coming days, and a liquidity crisis ensued. Following CEO Sam Bankman-Fried’s unsuccessful bid to raise the $8 Billion required to save his company, FTX filed for chapter 11 bankruptcy on November 11th. Much like in the ‘Crypto-winter’ of 2018, which saw Bitcoin tumble from highs of $20,000 to $3200, the credibility of the entire industry is being brought into question once more. It is without hesitation that I say that this year’s events have not been a result of inherent flaws within cryptocurrency itself, but rather the failures of the people and businesses behind them. At StrikeX, we believe in a well-managed balance between centralisation and decentralised financial products and services. Our flagship product; <a href="https://tradestrike.io/tradestrike/" rel="noopener noreferrer nofollow">TradeStrike</a>, is a centralised tokenised asset exchange, and with the current climate surrounding centralised cryptocurrency exchanges — it is essential for us to lay out our plans to bring confidence back to the industry.It has always been our mission at StrikeX to provide the best possible platform for our users by utilising innovative Web 3 technologies and next-generation, digitised trading instruments, whilst ensuring that we meet the high expectations already set by the existing, proven and regulated financial markets.StrikeX delivers software and services designed from the ground up to be a secure, transparent and truly class-defining experience. We will provide visibility of the core business practices and policies, from proof-of-reserves and a transparent balance sheet, clearly segregated client/business funds, to risk management. We believe in embracing regulations, not skirting around them; it is essential to not only our success, but the entire cryptocurrency industry. StrikeX will redefine the way in which the next generation of crypto-asset exchanges operate, building a safe haven for customers to benefit from the truly revolutionary technology that cryptocurrency and its underlying technologies have to offer. Joe Jowett CEO &amp; Co-Founder TradeStrikeBVI, StrikeX<a href="https://tradestrike.io/strikex-wallet/" rel="noopener noreferrer nofollow">Download</a> the StrikeX | DeFi Crypto Wallet now. Learn more about our project on <a href="tradestrike.io" rel="noopener noreferrer nofollow">tradestrike.io</a>

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