The FTX collapse has severely damaged trust amongst the crypto community
Projects that focus on community, decentralisation, and transparency likely to benefit
Metacade, a new play-to-earn community hub, is a prime example of a projects with longevity and stability
Over the past few weeks, the crypto space has been rocked by the stunning multi-billion dollar collapse of one of the world’s most widely-recognised crypto exchanges, FTX. But it might not be all bad, however. The need for transparency and decentralisation has been thrust back into the spotlight recently – two things that are essential to restore trust in the crypto community.
This article will explain why the FTX collapse could actually be a positive thing for new tokens like MCADE and the Metacade platform as a whole.
What Happened to FTX?
FTX was one of the world’s largest centralised crypto exchanges, serving over five million customers and facilitating over $700 billion in trading volume in 2021. The exchange was founded by Sam Bankman-Fried, who also ran Alameda Research, a quantitative trading firm with close ties to FTX.
On November 2nd, an article by Coindesk reported that Alameda held around $5 billion in FTT, FTX’s native token, in its almost $15 billion worth of assets. As these tokens were effectively created out of thin air, concerns were raised around Alameda’s, and therefore FTX’s, ability to stay solvent should the price of FTT drop.
The first domino fell when Changpeng “CZ” Zhao said he would be selling Binance’s holdings of FTT on November 6th. This started a death spiral of negative speculation, causing FTT’s price to fall. This led to a liquidity crisis as investors rushed to pull their assets off the FTX exchange. And on the 8th of November, FTX paused all withdrawals.
As a result, FTT’s price plummeted from $21.8 to a low of $3.26, decimating FTX’s assets. Meanwhile, Binance announced a plan to buy FTX but then pulled out the following day. This meant FTX was without the funds to pay back investors and eventually led to the exchange filing for bankruptcy protection on November 11th. Through bankruptcy proceedings, it was determined that FTX owed its 50 biggest creditors over $3 billion. Court-appointed liquidators have cited serious fraud and poor risk management practices as the reasons for FTX’s collapse.
What is Metacade (MCADE)?
Metacade is a community hub that’s aiming to be the number one destination for play-to-earn gaming. It’s a space where gamers, crypto investors, developers, and entrepreneurs can go to connect and have fun while exploring the budding GameFi industry. On the platform, you’ll be able to see the latest trending games, read reviews, and access the most advanced GameFi alpha to help you make the most out of your play-to-earn adventure.
Metacade has drawn some attention recently due to its community-first philosophy that puts users first. Metacade’s goal is to maximise user value at every step of the way and to put gaming back into the hands of the players. For instance, Metacade rewards anyone who posts reviews, tips, or other valuable content with the MCADE token. It’s also launching the Metagrants scheme, which allows users to direct funding to the games they want to play in a competition-based arena amongst game developers, with the finished title being added to Metacade’s virtual arcade.
Metacade’s ultimate plan is to become the world’s first player-owned virtual arcade, revolutionising how traditional community hubs are formed in the process. To fulfil this vision, Metacade plans to become a decentralised autonomous organisation (DAO) once development is complete. This means that every decision affecting the community will be put to a vote for MCADE holders to determine the direction of the platform.
Why Could the FTX Collapse Be Positive For Metacade (MCADE)?
Putting the pieces together, it’s now possible to see why FTX’s collapse could open doors for new tokens like Metacade. Some have compared the collapse to the dotcom bubble, which severely dented trust but encouraged internet-based businesses to adopt more sustainable business models. The same is likely to happen to the crypto market as low trust means that more crypto investors will be seeking transparent projects with solid fundamentals like Metacade.
For example, Metacade has made it clear that 70% of its tokens will be available in presale, with no founder or venture capital allocations. It’s also implementing multi-signature wallets, which require multiple key holders to sign off on transactions made from the Metacade treasury. As the team puts it in the Metacade whitepaper, “achieving maximum security for $MCADE and its holders is our highest priority,” which is why they’re undergoing a full audit from Certik, one of the leaders in blockchain auditing.
There’s also likely to be a greater shift towards decentralised projects that don’t have a central point of failure. Once Metacade becomes a DAO, the likelihood of it falling prey to the downsides of centralisation is vastly reduced as decisions are made by the community, not a handful of people with ulterior motives.
Above all else, projects that focus on their users, not profits, are likely to become much more attractive to investors. FTX is a prime example of what happens when a centralised group prioritise profit and not their users, and projects like Metacade could be an antidote to this toxic philosophy.
Metacade (MCADE) Might Emerge as a Winner After the FTX Fiasco
It remains to be seen how the fallout of FTX’s collapse will affect the future of crypto. There’s a strong chance that more regulatory oversight is coming, which might not be a bad thing for projects like Metacade. Trust is low right now, and these kinds of transparent projects are likely to be highly sought after by crypto investors across the globe.
Given the rapid pace at which play-to-earn is growing, combined with a number of innovative features and a transparent, community-first approach, Metacade seems like an excellent investment opportunity post-FTX collapse. And right now, there’s no better time to get involved with the MCADE token still in presale. If you’re looking for a fresh token that’s putting investors, not profit, first, it’d be wise to check out the Metacade presale today.
You can participate in the Metacade presale here.
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