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ARK Crypto Brainstorm #01: The Aftermath of FTX

FYI - For Your Innovation

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Is Proof of Reserves a Good Thing?

I mean, they took real Bitcoins from clients to positives and gave them a paper IOU for the Bitcoin. Those Bitcoins ended up back on corporate balance sheets and were presumably liquidated fiat. Meanwhile, they have a Bitcoin-flavored liability that they owe their clients. So I think that is kind of an artificial additional sell pressure. And also what Nick mentioned, it's absolutely true that we are probably going to see a consolidation of constodianship in the industry.

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