The collapse of cryptocurrency exchange FTX has caused turmoil in the blockchain industry.

Industry experts and leading analysts voiced their opinion on what led to the company’s liquidity problems and what they think of CEO Sam Bankman Fred before and after the company’s crisis.

The bankman allegedly mishandled client funds and is currently facing an investigation by US regulators.

Elon Musk, the world’s richest man and CEO of Twitter, shares his thoughts on FTX and what he thinks of its CEO.

In a Twitter space hosted by Mario Novell, which has more than 60,000 listeners, Musk reached out to Bankman and expressed interest in collaborating with him to buy Twitter last March.

He said he had never heard of Bankman before their half-hour long phone conversation.

According to Musk, during his conversation with Bankman, it became clear to him that he was a man full of nonsense.

Musk asked listeners to be careful when dealing with cryptocurrencies.

Musk suggested a famous piece of advice in the crypto space, which is:

Not your keys, not your money.

What they are saying here is that if the user’s money is in the trading platform, they don’t own the keys and the platform owns them.

If things go wrong like FTX, users will not have rights to their cryptocurrency because they don’t own them.

But if your cryptocurrency is in an external wallet, the key is in your possession.

Disruption in the Crypto Space:

The ongoing issues surrounding FTX have caused the market value of cryptocurrencies to plummet.

The total cryptocurrency market cap fell below $900 billion for the first time since January 2021 and now stands at $829 billion.

On the investor side, cryptocurrency users decided not to bear the brunt of a failed cryptocurrency exchange and so they withdrew their funds from cryptocurrency exchanges.

Billions have been pulled from crypto exchanges since the fall of FTX.

Many traders took the initiative to withdraw their funds to a wallet they controlled to avoid situations like the ones documented in the Voyager Digital and Celsius Network cases, which until now shut out liquidators and investors.

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