Seeing the FTX exchange cause a market plunge further highlights one fact that we should be knowledgeable about by now. It is that the space is not immune from failure, and we have seen it play out in big fashion this year with these projects causing a shockwave on the entire crypto space.

While the media likes to exaggerate the dangers of this space, make no mistake that more projects will fail into the future. There are going to be business models we try out that doesn't just fit and the concept of a project being too big to fail simply doesn't apply to Crypto, or any project for that matter.

I mean look at Meta (facebook) that is also going through similar rough patches and is set to lay off 11,000 of its employees. Businesses are in for a rough patch and business models are going to be tested continually. If sustainability is not in your strategy then there is likely already a precedent for failure.

The crash of FTX from what I have been able to gather came from a position of not being too honest about its dealings and and some negative publicity that sparked a massive exodus. Somewhat surprisingly, part of that publicity came from the founder of Binance, but perhaps that is a topic for another day.

Honesty is very important in dealings with this space, and the bigger you are the more important it becomes because of the increased investors funds at your disposal. There simply isn't enough room to play with investors funds without giving proper accountability and making the right decisions. This is why I am skeptical of those who choose to increase their loan books by epic proportions in this space, and that is one area not everyone should be venturing.

Hive being affected by this current crash isn't a surprise and is somewhat expected. Should we see a further decline we are going to hear same old songs about how people have apparently lost faith in crypto. Decline doesn't mean death however, and for many projects this might actually be something good time to invest.

Conclusion

The things with these kind of crashes is that on one hand it prompts more government scrutiny and chases of short term investors. Yet on the other hand, it helps us figure our strategies not to apply moving forward. There will be changes to many existing projects and a lot of new projects in the future born out of the lessons and failures of the old. We aren't done yet.

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