The FTX exchange has done a lot of damage in the crypto market and we can still see the effect in the market. While people have lost a lot of money because of this incident but seems like many other companies are also going through a tough time as they also have to go through financial losses.
Now blockfi has filed for bankruptcy as they have lost money because of ftx collapse. This year 2022 has not been good for many companies and there are many names on the list. Block 5 is a company that offers financial services back by borrowing in the crypto market. It was offering a bunch of services related to crypto that includes lending as well as earning money by depositing various crypto coins. It's called stake and earn, and now with this incident seems like that is also highly risky and it's better to keep the funds with us. I know that some people must be thinking that if they keep their funds with them then they are not going to earn anything from this.
In my opinion, this time earning is not that much important rather the front safety is more important and should be a priority for us. There is no need to give control to anyone else as of now because the market is crucial and we do not know how this situation will end. I expect that this will take a long time and it's not going to end real soon.
This is sad because those who had money on the exchange or even with the blockfi are going through a tough time and this type of situation is surely bad for everyone. There is learning I think we also that we need not give custody to anyone and no matter how popular and leading that company or exchange is. I do understand that it's not always possible to avoid these centralized crypto exchanges because many of us do trade and for that reason, we need to rely on them. But we can do here to keep the only required funds in the exchange and no idol funds should be stored on the exchange wallet.
Undoubtedly hardware wallet is the best solution that we can go for and it also comes with a certain cost which I think is fair as long as you want to continue working in crypto for the long term. We are approaching the year's end and I believe there should not be any more news like this but again it is the market and we cannot predict anything completely.
Thank you so much
Stay Safe