The collapse of FTX seriously shook trust among the crypto community Projects that focus on community, decentralization and transparency are likely to benefit from this New play-to-earn community hub Metacade is a great example of longevity and stability In recent weeks, The crypto space has been rocked by the stunning multi-billion dollar collapse of one of the world’s most recognizable cryptocurrency exchanges, FTX. But it might not all be bad. The need for transparency and decentralization has come back into the spotlight recently, two things essential to restoring trust in the crypto community. This article will explain why the FTX collapse could actually be a positive thing for new tokens like MCADE and the Metacade platform as a whole.
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What happened to FTX?
FTX was one of the largest centralized cryptocurrency exchanges in the world, serving over five million customers and facilitating over R$3.8 trillion in trading volume in 2021. The exchange was founded by Sam Bankman-Fried, who also ran Alameda Research, a quantitative trading company with close ties to FTX. On November 2, a Coindesk article reported that Alameda held around R$27 billion in FTT, the native token of FTX, in its nearly R$81 billion in assets. As these tokens were effectively created out of thin air, concerns have arisen regarding Alameda and therefore FTX’s ability to remain financially healthy should the price of FTT fall. The first domino fell when Changpeng “CZ” Zhao said he would sell Binance’s FTT holdings on Nov. This started a death spiral of negative speculation that caused the FTT price to crash. This led to a liquidity crunch as investors rushed to withdraw their assets from the FTX exchange. Then, on the 8th of November, FTX paused all withdrawals. As a result, the FTT price dropped from R$117.43 to a low of R$17.56, decimating FTX assets. Meanwhile, Binance announced a plan to buy FTX but backed out the next day. This left FTX with no funds to pay investors and eventually led to the exchange filing for bankruptcy protection on Nov. Through the bankruptcy process, it was determined that FTX owed its top 50 creditors more than R$16 billion. The court-appointed liquidators cited serious fraud and poor risk management practices as the reasons for FTX’s collapse.
What is Metacade (MCADE)?
Metacade is a community hub that aims to be the number one destination for play-to-earn games. It’s a space where gamers, crypto investors, developers and entrepreneurs can connect and have fun while exploring the booming GameFi industry. On the platform, you’ll be able to see the latest hot games, read reviews and access the most advanced GameFi alphas, to make the most of your play-to-earn adventure. Metacade has recently gained attention due to its community-first philosophy, which always puts users first. Metacade’s goal is to maximize user value every step of the way and put the game back in players’ hands. For example, Metacade rewards anyone who posts reviews, tips, or other valuable content with the MCADE token. Metacade is also launching the Metagrants scheme, which allows users to direct funds towards games they want to play, in a competition-based context, with the final title being added to Metacade’s virtual arcade. Metacade’s ultimate plan is to become the world’s first player-owned virtual arcade, revolutionizing the way traditional community hubs are formed in the process. To fulfill this vision, Metacade plans to become a decentralized autonomous organization (DAO) once development is complete. This means that all decisions that affect the community will be put to a vote by MCADE holders.
Why FTX Collapse Might Be Positive for Metacade (MCADE)?
Putting the pieces together, it’s now possible to see why the collapse of FTX could open the door for new tokens like Metacade. Some have likened the collapse to the DotCom bubble, which severely damaged confidence but emboldened Internet companies to adopt more sustainable business models. The same is likely to happen to the cryptocurrency market, as low confidence means more crypto investors will be looking for transparent projects with solid fundamentals like Metacade. For example, Metacade has made it clear that 70% of its tokens will be available on pre-sale, with no founder or venture capital allocations. It is also implementing multi-signature wallets, which require multiple primary holders to sign off on transactions made in Metacade’s treasury. It is precisely because the team put in the Metacade whitepaper “achieving maximum security for $MCADE and its holders is our highest priority” that they are undergoing a complete audit by Certik, one of the leaders in blockchain auditing. There is also likely to be a greater shift towards decentralized projects that don’t have a central point of failure. Once Metacade becomes a DAO, the likelihood of it falling to the disadvantages of centralization is greatly reduced, as decisions will be made by the community, not a small number of people with ulterior motives. Above all, projects that focus on their users rather than profits are likely to become much more attractive to investors. FTX is an excellent example of what happens when a centralized group prioritizes profit over its users. Therefore, projects like Metacade can be an antidote to this toxic philosophy.
Metacade (MCADE) May Emerge as a Winner After the FTX Fiasco
It remains to be seen how the fallout from the FTX collapse will affect the future of the crypto world. There’s a high chance there will be more regulatory oversight, which might not be a bad thing for projects like Metacade. Trust is low at the moment and these types of transparent projects are likely to be highly sought after by crypto investors around the world. Given the rapid pace at which play-to-earn is growing, combined with a host of innovative features and a transparent, community-driven approach, Metacade looks like an excellent investment opportunity after the collapse of FTX. And now, there’s no better time to get involved with the MCADE token still on pre-sale. If you’re looking for a new token that puts investors, not profit, first, a great idea would be to check out the Metacade pre-sale today.
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