Crypto: How to handle the losses, confidence collapse. Experts weigh in

The downfall of crypto exchange FTX and its founder Sam Bankman-Fried (SBF) has been described as the “Lehman Brothers” moment of cryptocurrency. Its demise is impacting other cryptocurrency platforms as investors and customers rush to retrieve their money.

In continuation of our series, “What to do in a bear market,” Yahoo Finance spoke to crypto industry experts to put into perspective what happened, and how to handle the losses from fallen exchanges.

There’s a lot of retail investors that have been trading crypto on various platforms for the past two years. And now they are probably sitting on huge losses. What specifically needs to happen to restore investor confidence?

More initiatives from the industry is one of various ways to shore up confidence, according to Oppenheimer executive director Owen Lau.

He cites the recovery fund recently announced by crypto exchange Binance in order to help crypto projects facing liquidity squeezes.

“Hopefully these private market solutions can…

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This article was written by and originally published on finance.yahoo.com