Experts compared the current situation surrounding Strategy with the history of the FTX exchange.
The debate over the comparison between FTX and Strategy has intensified again following a series of comments from members of the crypto community. Investors noted that the exchange operated as an opaque entity, concealed losses, and lacked proper oversight. Users emphasized that the platform used client assets for risky trades, concealing the extent of the problems until the collapse.
Strategy, on the other hand, is presented in the discussion as a counterexample. Commentators pointed out that the company publishes 10-K and 10-Q reports and is audited by the Big Four. Participants also noted that the organization has no hidden third-party liabilities and holds bitcoin directly on its balance sheet. This structure ensures complete transparency and eliminates the risk of a repeat of scenarios like FTX. Investors believe that attempts to find hidden mechanisms in the company's operations are unfounded.
Some participants noted that experts are exaggerating Strategy's risks. Commentators believe that rumors of the company's shady liabilities are unsubstantiated and contradict public filings. They point out that Strategy's capital is built on a standard model without hidden debt instruments. Observers believe that attempts to interpret normal corporate processes as indicators of threat are misleading to inexperienced investors.
Experts also addressed the confusion between corporate instruments and cryptocurrency schemes. Commentators explained that debt, equity, and preferred instruments operate under transparent rules and bear no resemblance to the mechanisms used at FTX. Investors noted that the exchange's problems were the result of a lack of auditing and oversight. In the case of Strategy, the governance and financial reporting structure precludes the use of the schemes characteristic of the bankrupt exchange. Researchers also recalled that FTX collapsed as a completely opaque organization. The company concealed backup data and had no real audit system.
Source: cryptonews.net
