Ark Invest CEO Cathie Woods is bullish on Bitcoin despite FTX’s collapse, saying the Bitcoin blockchain has continued to operate as usual.
In a December 11 Tweeter Citing Ark Invest’s November report on supplying long-term BTC holders, she noted that the blockchain showed resilience during a dig at FTX founder Sam Bankman-Fried.
SBF didn’t like Bitcoin because it couldn’t control it: Woods
According to her, the Bitcoin blockchain has not moved during the crisis caused by opaque centralized actors.
She said SBF didn’t like Bitcoin because it was transparent and decentralized, adding that “he couldn’t control it.”
Woods remains very optimistic on cryptocurrencies and believes that bankruptcies of centralized entities will boost the decentralized financial sector.
Bullish Woods on DeFi
In an interview with Yahoo Finance on Dec. 9, Woods noted that DeFi networks are working as expected and pointed out that there are metrics that show they are getting stronger. She says:
“I think what we’re learning from FTX is how much more important fully transparent decentralized networks will be for financial services in the future…FTX, Celsius, 3AC were all closed networks. Opaque systems. You couldn’t see what was going on…”
In his view, the transparency of the DeFi sector, even in the midst of crypto crises, will always be its saving grace.
Ark Invest says decentralized and transparent blockchains remain strong
Ark Invest Bitcoin’s monthly report also painted a bloody picture of what happened in November with FTX collapsing and BlockFi filing for bankruptcy. The month was marked by a very high capitulation, with the realized profit and loss ratio for Bitcoin reaching an all-time high.
However, long-term BTC holders saw their supply stabilize at 13.8 million BTC, near an all-time high.
Even amid this bloodbath, Ark Invest noted that “decentralized and transparent public blockchains are stronger than ever.”
The report recommended that “decentralization and transparency are paramount as antidotes to the gross mismanagement that can be associated with centralized intermediaries”.
Meanwhile, crypto firms exposed to FTX are still suffering from the fallout. The Block CEO Michael McCaffrey has resigned following revelations that he had secured an undisclosed loan from Alameda.
BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.