Yellowcard’s Alice Tomdio on lessons from FTX crypto collapse

The cryptocurrency market has faced a turbulent year, witnessing billions wiped off its value since reaching its peak in November 2021. The recent collapse of major exchange FTX has further shaken the market, prompting discussions on the importance of regulation and transparency in the industry. Alice Tomdio, the CFO at Yellow Card, shared her insights on the lessons learned from the FTX debacle and the necessary steps to avoid similar situations in the future. Tomdio emphasized the crucial role of regulation in safeguarding consumers and maintaining the integrity of the crypto market. She highlighted the need for collaborative efforts between industry players and regulators to enhance understanding and ensure the protection of customers' assets. Moreover, Tomdio stressed the importance of transparency, ethical behavior, and consumer education in preventing future crises. The downfall of FTX has raised concerns about the potential impact on African crypto companies, with uncertainties surrounding the second and third-order effects. While some companies have disclosed their exposure to FTX, others like Yellow Card have reassured customers of their safety measures. Yellow Card operates on a compliance-first approach, holding licenses and engaging with regulators to uphold industry standards. Tomdio underscored the significance of transparency, education, and regulatory compliance to mitigate risks and build trust in the crypto market. Moving forward, the industry must prioritize transparency, consumer education, and regulatory engagement to prevent future market disruptions and protect investors' interests.