Contagion only hit firms with ‘poor balance sheet management’ — Kraken Aus boss

According to Jonathon Miller, Kraken Australia’s managing Director, the crypto contagion that was triggered by Terra’s implosion this past year only spreads to protocols and companies with “poor financial management”, and not the underlying Blockchain technology.

Cointelegraph spoke with the head of an Australian crypto exchange. He stated that Decentralized Finance (Ether-based) showed its fundamental strength by weathering extreme market conditions.

“Some of our contagion, which we observed across some of these lending models in this space, [was] in] this traditional finance type of lending model sitting ontop of crypto. What we didn’t see was a catastrophic failure of the underlying protocols. This has been acknowledged by many people.

“Platforms such as Ethereum didn’t fail when volatility struck. You saw decentralized markets and decentralized lending models, as well as DeFi, not collapse. There was no spread of contagion. He said that the problem was poor balance sheet management by closed-shop trade fee lenders.

Miller’s comments come despite CoinGecko reporting that there was a 74.6% decline in DeFi market cap during Q2 2022 due to the collapse of Terra. The crypto data aggregator noted, however, that most of the industry’s daily active users were retained.

Miller stated that blockchain projects are only troubled when their underlying protocols are “obviously bad”, as was the case with Terra’s algorithmic stablecoin TerraClassic USD. (USTC).

“I believe that it’s a tradeoff. He said that there is a Treasury management issue, and not a Blockchain problem.

Miller was asked about Kraken’s performance in the crypto bear markets this year and suggested that the company was ready to handle the volatility. Miller noted that the company had survived many downturns over its 11-year history and didn’t spend a lot on marketing last year.

“We are in a slightly different situation than some of the other exchanges out there that have spent lots of money advertising. He explained that we have a strong word-of mouth business model.

Related: Crypto contagion discourages investors in the near term, but fundamentals remain strong

Miller expressed optimism about the state of the Australian crypto industry, saying that there were many “bullish underlying signs” from businesses still building products.

He cited the recent testing by major banks like ANZ of their own stablecoin on Ethereum and the joining of major payments giants like Mastercard to the Blockchain Australia Association as evidence of strong “intent” to get involved in crypto and Blockchain.

“So, you know, institutions using the underlying tech. Maybe some heat out some of the potential speculative characteristics that we saw through 2022. Which is potentially even good.”

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Jason Basler

Jason Basler– Financial Updates My Name is Jason Basler and I am also the main source from the ‘Topnewsscoop.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor. Address: 4830 Crim Lane Dayton, OH 45402, United States of America Phone Number:  +1 937 727 7917 Email: [email protected]

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