finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Fintech’s Trust in the Cryptocurrency Sector

The Fintech industry has experienced astonishing growth throughout the last decade.

Posted: 22nd November 2022 by
Finance Monthly
Share this article

Valued at $7.3 trillion in 2020, it is projected to grow at a compound annual growth rate (CAGR) of 26.87% up to 2026 with the rising adoption of the internet of things and advanced technologies. 

According to the Global Fintech Adoption Index in 2019, Fintech adoption was doubling every two years throughout the world. It increased from 16% to 64% from 2015 to 2019. 

This growth was also seen during the Covid-19 pandemic, where digitalization took its toll and the Fintech industry took the role of the enabler in digital payments, as most of the world shifted to contactless and online shopping. We also saw a rapid growth of crypto payments being accepted throughout the global tech industry and a great potential for Crypto payment adaptation in different types of businesses.

This time, last year, things were going pretty well for the fintech industry, specifically the crypto market. In 2021, investors and crypto markets were hyping Bitcoin, and for a good reason. It reached a value of $69,000 and represented a promising future for the financial system. Now, exactly one year later, its value dropped down to $18,000, making crypto investors lose more than $2 Trillion.  

2022 is a year of the crypto market collapse, as we witnessed the major downfall of the Celsius Network, the Terra/LUNA collapse, and most recently – the dramatic downfall of the infamous crypto market, FTX. 

Does the FTX crash affect people’s trust in the Crypto market?

The efforts to incorporate crypto payments into businesses are now shaken. The trust of companies was always hard in the first place, but now with the downfall of major players, caution is the key factor when it comes to crypto investing and payments. 

In 30 days, Sam Bankman-Fried, the founder and CEO of FTX has lost a $17 Billion fortune as a result of piled-up crises. Bankman-Fried sought help from its biggest competitor Changpeng Zhao, founder of Binance, to which Zhao first agreed, but then, after several suspicious activities from the now-bankrupt ex-CEO, Zhao walked away, leaving Bankman-Fried even more exposed. Reuters reported that Bankman-Fried may have secretly transferred $10 Billion of FTX customer funds to his hedge fund called Alameda Research. On top of that, at least $266 million had been withdrawn from FTX in 24 hours.

Although the once-crypto billionaire took responsibility for FTX’s collapse, the suspicious activities and withdrawals shook the crypto market to its core. The whole situation sparked international regulatory inquiries and a lawsuit against the company and all celebrities who have promoted it. The company’s financial statements and operations paint a very worrisome picture that transcends throughout the global crypto market. 

Companies in this industry will need marketing wizards such as AWISEE, an SEO Agency for Fintech companies, to gain back the trust and audience that they are used to. 

However, on the other scope of the crypto world, there are companies like the very well-known Coinbase, that are trying to be a more sustainable player in the world today. With their Coinbase Commerce, they have opened the doors for merchants and businesses across the globe and enabled them to receive payments from anywhere in the world in the cryptocurrency of their own choice. It can integrate with the checkout workflow or it can be added as a payment option on the shopping page. It charges no transaction fees and enables the user to convert any cryptocurrency to a fiat currency like the US dollar or the British pound. 

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram