Why Project TXA is Necessary
The Prevalence of Crypto Company Failures
Federal prosecutors this week arrested the former CEO of Celsius – one of the largest crypto platforms in recent years – on charges of fraud and securities manipulation. This came at the same time that other federal agencies, including the SEC and FTC, levied a number of charges and fines against Celsius and several of its former executives. The ongoing saga of Celsius’ legal and financial woes has yet to be resolved, and tens of thousands of former Celsius customers are still holding their breath, wondering if they will ever see the money that they trusted this company with.
It’s not just Celsius that has landed in the hotseat for bad business practices, and it’s not just Celsius that has hurt customers by losing funds. Here’s a quick refresher on some of the most eye-popping crypto company collapses of recent years.
- The massive cryptocurrency project Terra collapsed in 2022, bringing the UST and LUNA tokens down with it as tens of thousands of people around the world lose $60 billion.
- Voyager, with over 3.5 million users, failed, resulting in untold thousands of customers losing billions of dollars worth of cryptocurrency.
- Three Arrows Capital buckles, dragging thousands of customers into the red as money disappears overnight.
- BlockFi, once a powerhouse in the crypto industry, files for bankruptcy.
- One of the largest cryptocurrency companies of all time, FTX, completely melts down.
Believe it or not, these are just a sample of the most noteworthy failures of the past 12-18 months. If we were to zoom out further, we’d find hundreds of examples of cryptocurrency companies going bankrupt, losing user funds, or maliciously closing down.
Lessons from Cryptocurrency Company Failures
What are the main takeaway lessons from these failures? We can think of three:
Rule #1: Understand the project you’re investing in. Know their weaknesses, know their business plan, know the arguments for and against their roadmap.
Rule #2: Never invest more than you’re prepared to lose.
Rule #3: Never trust another person with your hard-earned money.
That last rule is perhaps the hardest to learn, but it’s the most important. Any company that forces you to give up full custody of your money is a company that probably should not be trusted. Sure, they may assure you that you can withdraw at any time – but when push comes to shove, those withdrawals can be frozen without warning.
Project TXA's Approach to Cryptocurrency Custody
Project TXA cares about its users and will never put them in a position where they have to violate Rule #3. The protocol we are building is non-custodial – which means that you retain full custody of your digital assets while using Project TXA’s hybrid decentralized exchange (hDEX).
When you consider the full value that the hDEX brings, including easy and rapid cross-chain swaps, the ability to earn interest, and more, you’ll realize how rare it is to gain all of these benefits while also retaining full custody of your cryptocurrency. In general, nearly every other project offering benefits similar to this would require you to fork over control of your money with just a wink and a handshake’s worth of assurance that you’d get them back.
At Project TXA, we don’t want to put our users in a position where they have to trust us. We know that we are trustworthy, but we believe that cryptocurrency and decentralized finance was meant to be trustless – which means that you shouldn’t ever worry about what’s happening to your money in the background. You’re in control, at all times, as it always should be.
Conclusion: Embracing a Trustless Approach in Crypto
New to Project TXA and wanting to learn what it’s all about? Be sure to catch the latest updates and join our Discord community to meet the team and make friends. We love to give crypto to our community, and staying active in our Discord server is the best way to be the first in line.
Welcome to Project TXA, where cryptocurrency evolves.