After the FTX incident, what are the leading institutions focusing on as the industry rebuilds consensus?
On the evening of December 7th at 8 PM, Cobo CEO & Co-founder Shen Yu will engage in an in-depth discussion with outstanding industry partners to explore the current confusions faced by institutions and share insights on the next phase of strategic planning.Author: Cobo
After the FTX incident, panic spread throughout the crypto market, affecting centralized institutions one after another. Investors gradually lost trust in some centralized exchanges that could not prove their asset reserves in a timely manner, leading to more conservative and cautious investment behaviors. However, institutional participants held a different view; they believed this was actually a good period for recovery. We also noticed that many institutions were becoming more active, as they were both upgrading their infrastructure and reviewing the past while preparing for the next bull market.
On November 22, Coinbase released the "2022 Institutional Investor Digital Assets Outlook Survey." The Institutional Investor Custom Research Lab independently conducted this survey from September 21 to October 27, covering a total of 140 U.S. institutional investors. The purpose was to clearly understand the attitudes of decision-makers in U.S. institutions towards digital assets. The assets managed by the respondents amount to approximately $2.6 trillion, representing a sample of institutional investors, and the data reflects the sentiment and attitudes of institutions towards the industry during the bear market.
Key Findings:
- Optimistic Construction: Institutional investors increased their allocation to crypto assets during the crypto winter, using this time to learn and invest more in construction.
- Technology Investment: Differentiated performance is the biggest motivation for investors to invest in the crypto space, with many indicating they will increase investments in innovative technologies.
- Risks and Returns: Despite increased market volatility, digital assets are still seen as one of the most attractive opportunities for generating Alpha.
- Principles and Concerns: Compliance has become the primary consideration when choosing cryptocurrency partners, with a consensus that regulatory transparency is an important catalyst for future growth.
One question in the survey caught our attention: Concerns About Digital Asset Investment
Q: What concerns you the most when considering investing in cryptocurrencies?
Among the many factors influencing their consideration of investing in digital assets, investors identified regulatory uncertainty as the primary concern, clearly expressing a desire for regulatory clarity. Nearly half (47%) of investors believe that events like the collapse of Terra Luna and the bankruptcy of 3AC are calls for policymakers to take action, demanding the creation of a fair competitive environment and the issuance of urgently needed regulatory frameworks. More than one-third (36%) of respondents believe such events serve as an important reminder for companies to adopt better risk management strategies.
In our daily business communications, we found that even some early-stage professional institutional participants have shortcomings in asset security, risk control, business compliance, and on-chain trustworthiness. This is also one of the important reasons for the short lifespan of crypto enterprises. A single security incident or liquidation can be enough to force an institution into bankruptcy. At the same time, there are many excellent institutions in the industry that can remain unaffected by each black swan event. How do they achieve this? To seek answers, Cobo invited several outstanding long-term players in the institutional space, who have recently experienced a complete cycle, to discuss the following topics:
- Current market status and trend analysis
- Institutional response strategies and market judgments under liquidity exhaustion
- Institutional review and solutions regarding the FTX incident
- Challenges faced by institutional fund management, practical thresholds, and misunderstandings behind the popularity of MPC
- DeFi investment teams, on-chain risk solutions, and optimization strategies
On Wednesday, December 7, at 8 PM, Cobo CEO & Co-founder Shen Yu will engage with excellent industry partners to delve into the current confusions faced by institutions and share thoughts on the next phase of layout strategies. Everyone is welcome to follow and participate, let’s spend two hours full of valuable insights together!
Note: Limited slots are available, and we will review the registration of participants. We apologize for any inconvenience this may cause.
