DeFi Protocol Mojito Markets Reveals Exposure To FTX, and Alameda Research
When one big bad actor in crypto goes down, it takes everyone down who has exposure to the bad actor one way or another. FTX ex-CEO Sam Bankman-Fried or SBF was arrested, and FTX and Alameda Research went out of business. It would be good if everything stops after that.
More problems appear that come to light after the collapse of FTX and Alameda Research. Aptos decentralized exchange Mojito Markets finally reveals its exposure to the FTX and Alameda. Are you wondering where they hold their project funds? Yes, you guess it right.
Mojito Markets holds its project funds under the custody of the FTX and now it's gone with FTX. They were excited to develop DeFi protocol Mojito Markets, but as soon as the centralized bankrupt crypto exchange FTX went out of the picture, they don't see any good luck any time soon.
Due to the bear market and macroeconomic situation, they have to accept the reality. So they paused the development of Mojito Markets and said goodbye for the time being. Keeping all eggs in one basket is a terrible idea that they learned the hard way. They will be back when the situation changes and focus on multi-chain to grab maximum exposure to their DeFi protocol.
The sad part is, they not only lost their project funds but also the core team lost their personal funds. Having your funds in any centralized crypto exchange is a big risk. No matter how reliable a centralized crypto exchange feels, it is centralized and it will always be centralized. You can lose your funds in different ways.
Even if you don't make any mistakes and do everything right on your side, you can lose money in a centralized crypto exchange. Mojito Markets is not the only one that has exposure to the bankrupt crypto exchange FTX and Alameda Research. Digital Currency Group, Liquid Global, BlockFi, Multipcoin Capital, and many other firms have had exposure and lost a lot of money.
We may see more collapse due to FTX contagion. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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