Here’s how the NFT community is reacting to the FTX crash

Binance’s impending purchase of struggling crypto exchange FTX has officially fallen through. What now? Without a support system to help FTX through its current liquidity crisis, it is unclear what will become of the second largest crypto exchange, not to mention the funds of its more than one million users.

But perhaps this was predictable. After all, next to the original authoritative announcements made via Twitter by both FTX CEO Sam Bankman-Fried and CEO of Binance Changpeng Zhao, the non-binding letter of intent (LOI) signed by Binance was relatively flimsy from the start. And this LOI ultimately served as both entry and exit for Binance after the company found, as reported by The Wall Street Journal“a big hole in FTX’s finances”.

There is a lot to say about the evolving FTX situation, but the gist of it is: Binance walking away from acquiring the exchange will lead to significant waves in the NFT space. Possibly even more serious than FTX’s native token tanking, and the excessive dissatisfaction of the FTX customer base.

The stakes are high – and as the situation continues to unfold, the crypto and NFT communities are speaking up. Here’s what they say.

What the NFT room thinks about the FTX debacle

For the most part, the mood throughout NFT Twitter seems bleak, but hints of hope remain sprinkled here and there. While some fully expect FTX to become insolvent — with some sources even report that Bankman-Fried himself says that bankruptcy is imminent — others see the liquidity crisis as a learning moment. This is especially true when it comes to Coinbase Co-Founder & CEO Brian Armstrongwho took the time to remind his followers of the promises of his own platform, and emphasized how working with policymakers could help mitigate situations like FTX’s current one.

“The temptation from incidents like these is to demand more heavy-handed regulation. This would only make the problem of crypto companies and crypto users traveling abroad worse,” Armstrong said via Twitter. “In the long term, the crypto industry has an opportunity to build a better system with DeFi and self-custodial wallets that don’t rely on trusting third parties,” he added in a subsequent tweet.

The importance of keeping calm in challenging times

While Armstrong looks ahead for answers, others worry about what the failed Binance and FTX deal could mean for the crypto and NFT industry. In case of prominent NFT builder and aggregator Loopifythe fear of the unknown has become a chance to spread positivity.

“People have lost their savings and had their lives turned upside down in a matter of days. But don’t do anything you’ll regret. It will be fine,” Loopify said via Twitter. “I’m not entirely sure how the market will behave in the next few weeks or months. Nobody can ever predict things 100 percent,” he added in the Twitter thread. “But these situations explain once again why over-investing in coins or JPEGs is never the way to go.”

Superiority despite shocking news and significant price changes is necessary to survive in the NFT space. After all, this is not the first (and probably not the last) time the space has been burned by a crypto platform. Mental health best practices aside, this situation is going to require patience from everyone. But still, some cannot help but see FTX and Bankman-Fried as the architects behind this whole disaster.

Crypto and NFT are joined at the hip, but Web3 will continue

Positive and negative reactions aside, at the end of the day, the blockchain just keeps on ticking. There is no denying the visceral sense of loss and financial damage for those who suffered from the ordeal. But the general consensus seems to be that keeping hope, being kind and making a plan for the future are the best ways to move forward. Although the NFT and crypto communities can seem quite different at times, the underlying principles of the two are one and the same. Because of this, both coin and JPEG flippers can benefit from studying Alotta Money’s playbook, to review all the good things that can come from the blockchain.