“Recent collapses are due to centralized actors”: JP Morgan analyst

Steven Alexopoulos, Bitcoin ecosystem analyst for JP Morgan bank, wrote about the FTX case in a post noting that “all recent crashes in the cryptocurrency sector have been caused by centralized players, not decentralized protocols.”

In a note available only to subscribers of the largest U.S. bank, the analyst, in addition to referring to the FTX case, also relates his message to the Terra (LUNA) and Terra USD stablecoin (UST) debacle.

As he reports CryptoNews At the time, the Terra case, while shaking up the market, also marked the power of stable coins, strengthening the ecosystem.

Alexopoulos’ publication was timely in clarifying that. the FTX case does not correspond to ecosystem-level failures. Of cryptocurrencies and that centralized projects are one thing and centralized projects are another.

Other JP Morgan analysts pointed out that, after the failure of FTX, they expect an industry-wide contagion.. This could create confusion and lead people to believe that the entire cryptocurrency industry is on the verge of collapse, according to the financial media American Zero Hedge.

For his part, Alexopoulos wrote that while the news of the FTX collapse is empowering crypto-skeptics, it is necessary to understand that… the debacle comes from centralized projectsnot decentralized protocols, such as bitcoin.

He added that far from being a death knell for the cryptocurrency industry, “FTX collapse is a painful setback, but could be the catalyst that will make the ecosystem take two steps forward.”

While this is certainly a major setback in the short term, we view the widely publicized failure of FTX as a potentially dramatic acceleration of the timeline for the introduction of cryptocurrency-related regulation.

JP Morgan analyst publication.

Other analysts agree with this view, as clarified by Marion Laboure of Germany’s Deutsche Bank, who believes that the FTX setback will eventually leave a positive effect on the cryptocurrency sector.

“We believe that this cryptocurrency winter will be positive because. The fall of FTX will push the cryptocurrency ecosystem. to adopt appropriate standards with more regulation,” Laboure said.