The impact of FTX’s downfall is being felt all across the crypto spectrum. Since the FTX crisis began to unfold, the crypto market has shed over $200 billion. Those who have commented on the FTX Fiasco include former Kraken CEO Jesse Powell, Binance CEO Changpeng Zhao, Cardano’S Charles Hoskinson, and Tesla CEO Elon Musk, among others.
Polygon co-founder Sandeep Nailwal also gave a piece of his mind on the latest calamity. In a lengthy Twitter thread, Nailwal explained how his network escaped all the chaos in the wake of the FTX meltdown and offered some tips to founders and community members.
“I am happy to see @0xPolygon ecosystem was lucky to come out safe from all this chaos. I can speak for myself and a few ecosystem founders I spoke with,” he said in a tweet on Saturday.
Sticking to core fundamentals of self-custody and trustlessness, Nailwal said, saved Polygon from exposure to FTX. He also mentioned not being greedy for attractive yields or market opportunities as the factors that kept polygon out of all the chaos in the wake of FTX’s failure.
“But many other ecosystems, VCs, and institutions got hit, why, because we all, collectively, have started neglecting our core fundamentals of Web3 more frequently than ever before,” he explained.
The Polygon co-founder advised crypto leaders and project founders to keep the financial health of their projects as the baseline and never treat it casually.
“You are a leader of a community, don’t betray it, don’t play with it,” he warned.
Nailwal gives his prescription for staying safe. Keep self-custody of your funds and ignore attractive but unrealistic deals from crypto hedge funds and lenders. Push your project forward sincerely as the community leader and never fall prey to market opportunities that let you make additional profits.
He claimed Polygon Foundation or any of its companies never had an FTX account. So, they escaped the bloodbath.
“Infact on the flipside, FTX Ventures bought $50mn $MATIC early this year, that unlocks yearly over 3 years and as of now everything is locked”,” he revealed.
Earlier, ZyCrypto had listed Polygon, along with Cardano and Solana, as the few crypto assets that enjoy a bullish outlook even in the current turmoil. Polygon has been doing exceptionally well with new ecosystem announcements. For example, Meta’s Instagram will integrate the Polygon blockchain network for its in-app NFT minting feature. Recently, the Monetary Authority of Singapore (MAS) completed a pilot project in collaboration with JPMorgan in decentralized finance on the Polygon network.