After submitting his resignation papers last week, Alex Mashinsky, the CEO of the insolvent cryptocurrency lender Celsius, has become the newest executive to leave the top position. Following similar actions by other crypto exchange founders, Mashinsky’s resignation last Tuesday left many investors apprehensive. The sudden increase in CEO resignations has led to grave worries over investor deposits in the cryptocurrency exchange.
Who is Alex Mashinsky?
Earlier this week, Alex Mashinsky resigned as CEO of insolvent cryptocurrency lender Celsius Network. As of immediately, Chris Ferraro is serving as interim CEO and chief restructuring officer.
Mashinsky announced today that he is stepping down from his role as Celsius CEO. According to the CEO, he will continue to encourage the community, since the business filed for bankruptcy, to unite behind a strategy that would result in the best outcome for all creditors.
How Do Crypto Exchange Founder’s Resignations Affect Investors?
According to Edul Patel, CEO and co-founder of Mudrex, a worldwide platform for cryptocurrency investments, investors’ money wouldn’t be recovered if a CEO resigned. Instead, it could bring about alterations within the organization. Although they may have distinct value systems, the fundamental concept of any exchange is to protect investors’ capital.
Industry estimates indicate that over 10 million people utilize cryptocurrencies in nations like India, underscoring the necessity of security measures in the crypto arena. In recent days, the global cryptocurrency market fluctuated at $954 billion.
WeTrade’s founder and CEO, Prashant Kumar, advised depositors to be cautious of market risks when making any investment, particularly in cryptocurrencies, due to their significant price volatility.
Will Resignations Impact the Cryptocurrency Exchange Industry?
Kumar Gaurav, the founder, and CEO of the Neo crypto bank Cashaa stated: “Typically, senior leadership does not undergo many changes during market upswings. But because of pressure from the market and shareholders, it is more obvious during a bear period.” According to Gaurav, market cycles can potentially drive unfit businesses and everyone connected to them.
Due to the resignations of crypto exchange founders, these effects will be felt by the crypto industry.