The FTX exchange collapse sent massive shockwaves throughout the industry last week. While, fear, uncertainty, and doubt are currently dominating headlines, the market is still firmly intact and will make a full recovery as it did many times before.
Still, we felt this was a good time for YouHodler to share our thoughts on the matter so our community can feel at ease.
What happened to the FTX exchange?
We know this story is trending and your mailboxes are full of emails from other platforms offering their opinions on the FTX exchange collapse. So we are going to be short and straightforward with this one.
Simply put, the FTX exchange faced a large liquidity crunch resulting in extreme emotional behavior in the crypto market.
We will not get into details surrounding why FTX did what it did. The purpose of this message is to provide you with some important facts about YouHodler.
These are as follows:
1. YouHodler has ZERO exposure to FTX/Alameda Research
YouHodler uses a conservative risk-management approach. For that reason, we have zero exposure to FTX, Alameda Research, or any of its affiliates. This includes other projects like Terra/Luna, Anchor Protocol, Celsius, BlockFi, and more.
2.YouHodler has healthy financial vitals
We don’t operate like a hedge fund. We never use client funds outside of the platform for investment in financial instruments. We never repurpose client funds.
To see YouHodler’s stats, including our balance sheet structure, please click here.
3. We have a sustainable business model (no native token)
We started our business operations in November 2018 and reached our break-even point in June 2020. We are not backed by an ICO or VC. We don’t have a native token to manipulate the platform’s financial data. You can learn more about our business model by watching the YouTube video below.
4. No offshore operations
YouHodler is a regulated Swiss and EU business. We have strict rules to comply with from several regulators. As a result, no offshore entities are involved in our business.
5. A non-custodial wallet for all clients is coming soon
To address any doubts you have about the “not your keys, not your crypto” statement, YouHodler is creating non-custodial wallets. This will be available soon for all YouHodler clients.
6. We have a strong long-term strategy
Currently, we are focused on building a Web3 banking platform that includes fiat, crypto, DeFi, and CeFi services all in one app. We want our clients to harness the best services of both TradFi and crypto.
This long-term strategy includes
- Centralized wallets with both crypto and fiat services.
- Web3 wallets that allow clients to benefit from DeFi.
- Investment services from both worlds: crypto staking, traditional bonds, and other financial instruments.
- A 360-degree payment and trading platform.
Learn more about our Web3 banking strategy HERE.
7. Our team is professional and continues to grow
We are using the current market downturn to strengthen our team (bear markets are for building!). Currently, we have a highly efficient, professional team of over 85 FinTech, blockchain, and cryptocurrency professionals.
We’re still hiring! Check out our careers page HERE.
Final thoughts on the FTX exchange collapse
We share condolences for everyone that was negatively impacted by the FTX exchange collapse. FTX engaged in highly risky business practices involving the misuse of customer funds
We want to be clear that YouHodler does not support that strategy nor will we ever do that to our clients. It was not right and it cast a shadow on the entire industry.
However, that shadow is temporary. This market is strong and resilient. It’s shown countless times that it can bounce back from even the worst events. Another bad actor is expelled from the crypto market and we see that as a good outcome.
Now, we must continue building and improving how this industry operates. YouHodler will always do its part to ensure our clients have access to a sustainable, transparent, and user-friendly platform. We can only hope our colleagues around the world will do the same.
