Fallout from the Collapse of Centralized Exchange FTX
In early November 2022, FTX, the world’s second-largest exchange for cryptocurrencies and digital assets, was valued above US$30 billion.
On 14th November 2022, FTX, along with 130 other affiliated companies founded by CEO Sam Bankman-Fried, filed for bankruptcy.
The dramatic and messy collapse of FTX sent shockwaves around the entire industry. Reports and rumours are now flowing in with details of mismanagement and abuse perpetuated by those at the top. According to CNBC, Bankman-Fried spent ‘substantial amounts of money’ on luxury unrelated to day-to-day business operations, such as $300 million on vacation homes in the Bahamas.
The insolvency of FTX marks the latest string of centralized entities failing in the crypto industry. If LUNA, Three Arrows Capital, Celsius, and BlockFi have taught us anything, it is that crypto investors are now rightfully wary of shady dealings done behind closed doors.
According to cryptocurrency research firm Delphi Digital, activity in decentralized exchanges (DEXs) is now way up, with DEX tokens growing 24%, while centralized exchanges (CEXs) tokens are down 2% over the same time period.
DEX tokens vs CEX tokens. Source: Delphi Digital
In another similar trend, on-chain data analytics firm Glassnode has reported that exchange outflows have hit a historical high, as crypto investors opt to keep their Bitcoin and Ether in their wallets instead.
As investors grow increasingly sceptical of centralized exchanges, many are now being reminded of the transparency and relative security of decentralized protocols and blockchains. According to the data metrics site The Block, transaction counts on EVM chains have remained consistently stable even as the contagion from the collapse of FTX continues to spread. This is an excellent sign as it shows that the market is maintaining a stable momentum, albeit with a renewed focus on decentralized finance (DeFi) and on-chain transactions.
Transaction Count on EVM Chains. Source: The Block
Alyx Chain – Setting a New Standard
Alyx Chain is set on a mission to make Web3 simple and accessible for everyone. Alyx’s Software Development Kits (SDKs) were created with that ethos in mind, with the ability to support a wide variety of programming languages such as C++, Java, Python, Move, and more. This means that aspiring blockchain developers do not need to waste time and efficiency in learning another new programming language, but can start their app development process right away in the programming language that they are comfortable and familiar with.
Since each programming language comes with its pros and unique quirks, the Alyx ecosystem is benefiting immensely from a diverse selection of applications created with different languages. Since the project’s launch, the team has been working full steam ahead to accelerate the growth of Web3 despite the current market climate.
Back in October, they announced a grand undertaking – the Genesis Universe Project – to discover talented developers and builders in the space. A total of US$250,000 was allocated for promising “Apex Builders” that could make a difference in the Alyx ecosystem.
The Genesis Universe project was well received, with more than 30 teams who have signed up so far. These teams are creating an array of Web3 applications in the Alyx ecosystem, focusing on DeFi, NFT, GameFi and more.
The Alyx team is confident that these amazing developers would be able to leverage the advantages of Alyx Chain to create new and exciting dApps that would surprise and benefit the space. With cross-chain interoperability embedded within the Alyx Chain infrastructure, developers can even migrate their existing apps on other blockchain networks to our budding ecosystem.
The blockchain and tech industry is currently marred by rampant layoffs and mass redundancy, but Alyx Chain is determined to support developers through concrete actions.
The project will soon be embarking on the next phase of the Genesis Universe Project, where a dedicated panel of blockchain experts will evaluate the dApps that participating developers have created. At the end of the competition, a total of 5 teams will be crowned as “Alyx Apex Builders” and be rewarded with $50,000 worth of Alyx tokens each to continue BUIDLing!
The team has expressed gratitude for the love and support from the community thus far, and hope that users, developers, partners and investors will continue to support them in their journey to build the strongest Web3 ecosystem in the world, right here on Alyx Chain.
Alyx Official Channels
Telegram Announcements Channel: https://t.me/AlyxChainChannel