(Newswire.net — November 25, 2022) — FTX, one of the largest crypto exchanges, filed for bankruptcy earlier this month. FTX’s crash has literally alarmed all analysts and crypto experts, who are now trying to assess the aftermath of such a shocking event and its impact on a number of related industries.
The crypto gambling industry is no exception to this – in fact, if you are a gambler at a bitcoin betting site in Portugal, an ethereum casino in Germany, or if you are generally playing casino games with Crypto, you’ve probably heard about the potential effects of the collapse of FTX and you might be wondering what these effects might be.
There are three main perspectives regarding the impact of FTX’s collapse on the crypto gambling industry. Evidently, one that sees this impact as being negative, one that sees the crash of FTX as having potentially positive effects, and one that doesn’t see any impact at all. Notably, it is this last one -the neutral perspective – which seems to be the most reasonable and the most rational among the three.
The negative impact perspective
Many analysts consider FTX’s bankruptcy as a source of negative spillover effects for other industries related to or linked with cryptocurrencies. One such industry is the crypto gambling industry, which is seen as the most immediate ‘world’ which will feel the consequences of the crypto exchange’s collapse.
A crash of a crypto ‘institution’, according to this view, is by nature and definition deemed to create a general shock, fear, insecurity, and anxiety to all those who are dealing with cryptocurrencies and as such, it is deemed to stall crypto gambling.
The potential positive impact perspective
For several experts, FTX’s crash has a positive side and this has to do with creating a domino effect in cleaning out the industry from deceit, cheating, and fraud. More particularly, some analysts see the collapse of FTX as a good chance to get all the attention and scrutiny from regulatory bodies, which in the end will help the development of a crypto gambling world that is free from scams. They assert that it is now the time to take more active control of regulatory frameworks governing such cases so that frauds and scams are out for good.
The neutral, “no impact” perspective
And while there are two contradictory views on the impact of FTX’s crash on crypto gambling, there is this view that actually has many supporters and which seems to be rational and justifiable. This view holds that the crash will have no substantial or considerable effect on crypto gambling and crypto sports betting. That is, despite the obvious sad story about the collapse of a crypto exchange, there is no ‘aftermath’ for the crypto gambling world.
The negative effects are going to be felt by the crypto sports betting exchanges and not by the betting sites. Gambling with cryptocurrencies has already taken form and shape and has already orbited in an upward path, which makes it really hard to have an outside factor change this path. The FTX’s collapse will affect those people, who use cryptos for investments and not those who use cryptos for transactional purposes and processes – this is at least what analysts and crypto gambling executives think.
Gamblers and bettors use cryptos for making deposits, payments, and transactions. There are no obvious risks and so there is no reason why they should stop doing so. They are not making investments, which would certainly make them more hesitant, suspicious, or scared.
The argument is that since crypto gamblers are using bitcoin, ethereum, and other digital currencies for transactions, there are no actual impacts that they need to take into consideration and as such, there is no need to alter or modify their behavior. It is a matter of understanding the difference between cryptocurrencies used as investments and cryptocurrencies used for gambling payments.
Some even go one step further to underline that the FTX’s collapse is unlikely to influence the relationship between cryptocurrencies and gambling, just as the bankruptcy of banks and other financial institutions in the past had not influenced the use of money in specific industries. It is one thing to talk about cryptocurrencies and another thing to talk about crypto exchanges, which are the platforms where cryptocurrencies are traded.