Wood: “DeFi Is Stronger Now”

Catherine Wood, Founder, CIO, and CEO of ARK Investment Management, told her 1.5 million Twitter followers that Sam Bankman-Fried doesn’t like Bitcoin because he can’t control it:

Wood also recently talked about his views on how the few major bankruptcies we’ve seen in the crypto space will affect the crypto market. Wood said in an interview with Yahoo Finance:

“We believe DeFi will really take strength from this, it’s clear now. There are all sorts of indications that they’re getting stronger now…

What we learned from FTX is how important fully transparent decentralized networks will be for financial services in the future… FTX, Celsius, 3AC were all closed networks. And what happened, while they [centralized crypto companies] crashed, people in fully transparent distributed networks were able to exit smoothly.”

On the same day, ARK Invest released the November 2022 issue of its “Bitcoin Monthly Report”. The report includes the following statements:

“Crypto exchange FTX, once led by respected crypto leader Sam Bankman-Fried (SBF), has filed for bankruptcy, catalyzed by the unethical and possibly illegal transfer of billions of dollars in customer deposits to sister company Alameda to meet margin completion demands…

The collapse of FTX, which caught many in the crypto and venture industry completely off guard, pushed the market into further capitulation. Billions of dollars of customer deposits locked in FTX; BlockFi was forced to file for bankruptcy; broker-dealer Genesis has stopped customer withdrawals; and stock investors in the industry cut their investments in FTX to zero…

The ratio between Bitcoin’s realized profits and losses has reached an all-time low, marking record-breaking capitulation. Net outflows from stock markets reached an all-time high. Fixed Bitcoin’s hash rate as miners faced a significant contraction in their profit margins. Long-term holders were strong as the total supply of long-term holders stabilized at an all-time high of 13.8 million BTC.

ARK’s belief in decentralized and transparent public blockchains is as strong as ever. Other cases such as FTX and Celsius and Alameda suggest that decentralization and transparency are crucial as an antidote to the massive mismanagement that can be associated with centralized agents, especially fraudulent ones.”