Coinbase Exec Says Institutional Investors Still Into Crypto Post-FTX
David Duong, head of institutional research at the exchange, says the collapse of Sam Bankman Fried's platform didn’t lead to a pullback.
Institutional investors appear to have a steadfast interest in crypto, David Duong, head of institutional research at crypto exchange Coinbase, told CoinDesk TV’s “First Mover” on Monday.
“The secular trend for institutional adoption hasn’t changed … it’s still here,” Duong said about whether the implosion of the FTX crypto exchange founded by Sam Bankman-Fried soured investor interest.
FTX and Alameda Research, an affiliated hedge fund, collapsed in November after a CoinDesk report revealed that Alameda was largely being propped up by FTT, a digital token that FTX created out of thin air.
Duong said even in the midst of the FTX debacle that came on top of the crypto winter, institutional investors have recognized that “these are cyclical developments."
Investors “are still here,” and are prepping for the next cycle by looking to “lay the foundation necessary to be able to trade," he said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.