ARK Investment Management founder and CEO Cathie Wood said the recent FTX debacle would benefit one crypto sector.
During a recent interview, Wood said that the collapse of FTX would boost the decentralized finance (DeFi) networks.
She said that decentralized networks would become increasingly important in the financial services industry after the bankruptcies of FTX and other crypto firms.
Wood added that users of decentralized networks could exit their trade positions and withdraw without a hitch after crypto prices plunged.
“We believe DeFi will get a boost from this because it’s obvious now – decentralized and transparent is the way to go. Those networks didn’t skip a beat. All their transactions were completed, and there are all kinds of metrics saying they’re getting stronger now,” said Wood.
Talking about the learnings from the FTX collapse, Wood said, “I think what we’re learning because of FTX is how much more important fully transparent decentralized networks will be to financial services going forward. FTX, Celsius, and 3AC were all closed networks. Opaque systems. You couldn’t see what was going on.”
During an interview with Bloomberg in November, Wood said that FTX was a fraud but not like Lehman Brothers or Bernie Madoff, and crypto will continue to move forward.