- Andre Cronje released an article to discuss some of the crypto sphere’s issues.
- Cronje criticized 3AC managers, the Terra crash, and others in the article.
- He also stated the necessity for crypto regulation.
DeFi developer Andre Cronje has criticized 3AC managers in his recent article titled “The Crypto Winter of 2022.” In the blog post, he cited the incidents from the crashes and network failures of the 2022 crypto winter.
In his article, Cronje shared his insights on the Terra Collapse, Celsius, and 3AC bankruptcy. The medium article that went live on October 25 highlights his views on the current bear market.
The article describes how market-changing occurrences like Terra’s demise and the insolvency of centralized organizations like Celsius and Three Arrows Capital impacted the cryptocurrency market.
He stated that these platforms that offer crypto investing services basically function as banks are also stressed. However, there are no regulations or oversight requirements that these institutions must follow, and most customers are experiencing “message asymmetry.”
Terra’s crash was not isolated and was the tipping point to expose the over-leveraged portfolios of several crypto-hedge funds and exchanges. Celsius was one of these exchanges and was not only overexposed to Terra but one of the main actors, spurring the run on the Anchor Protocol
The blog also suggests several potential remedies that may be taken from conventional financial institutions, including consumer protection, robust regulatory frameworks, and central bank insurance.
Colin Wu retweeted the news and shared some of the highlights from the article. He highlighted the main points of Cronje’s views, which mention the behavior of the executives in these exchanges. Cronje also stated that they basically gambled with the funds of others without thinking about the repercussions of their actions.
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