Recent market surveys suggest that after the JPEX incident, public confidence in cryptocurrency has declined, and the intention to invest in digital assets has also weakened. Even those still interested plan to invest no more than HKD 50,000. However, investors should not easily lose confidence due to isolated market events. Let’s explore why.
As someone deeply embedded in the crypto space, I barely commented on the JPEX incident. Why? Because those truly active in the industry paid little attention to it. Most discussions came from outsiders merely spectating. A quick check on Twitter or Discord shows how rarely JPEX was mentioned among genuine crypto enthusiasts.
Why the Crypto Community Ignored JPEX
True crypto natives never used JPEX nor had any interest in it. Last September, I attended Token 2049 in Singapore, the industry’s premier annual conference. Neither the main event nor side events featured any discussions about JPEX—proof that it wasn’t on the radar of serious participants.
Misconceptions About Scale and Impact
Some claimed JPEX’s impact exceeded FTX’s collapse. This is profoundly incorrect. JPEX involved an estimated $200–300 million, while FTX’s fallout spanned $8–10 billion—public data confirms this. How could JPEX possibly be larger?
Moreover, I don’t know anyone or any institution that held funds on JPEX. In contrast, major institutions had significant exposure to FTX, with average losses around 20%. By trading volume and open interest, FTX ranked as the world’s second-largest crypto exchange before its downfall. JPEX didn’t even crack the top 50. Those believing JPEX was bigger likely have zero understanding of crypto markets.
Media Sensationalism and Public Perception
The arrest of celebrities tied to JPEX fueled media frenzy, amplifying public fear. This echoes the old saying: “Once bitten, twice shy.” But should we abandon innovation due to isolated scams? For instance, phone scams cost victims millions, but do we stop using phones? Do we quit using computers due to viruses?
Similarly, blaming cryptocurrency itself for JPEX is misguided. Bitcoin doesn’t commit fraud; people do. The responsibility lies with investors to educate themselves and avoid pitfalls. Over the past three years, I’ve consistently highlighted Binance, OKX, and Bybit as the top global exchanges. None of my students had any exposure to JPEX—proof that knowledge is protection.
Secure Alternatives for Crypto Holdings
If you simply want to hold cryptocurrencies, there’s no need to keep them on exchanges. Use self-custody wallets like MetaMask or hardware cold wallets for enhanced security. For those seeking exposure without direct exchange risk, consider proxies like:
- CME Bitcoin futures
- ProShares Bitcoin Strategy ETF (BITO)
- Equity proxies like Marathon Digital (MARA) or Riot Platforms (RIOT)
- The FA Southern Bitcoin ETF (03066) in Hong Kong
These offer indirect access to crypto price movements without holding assets on exchanges.
Frequently Asked Questions
Why did the JPEX incident attract so much media attention?
Celebrity involvement sparked widespread coverage, but the event was irrelevant to the core crypto community. Media often highlights drama over substance.
How can I avoid similar scams in the future?
Stick to well-known, regulated platforms and prioritize self-education. 👉 Explore secure trading strategies to mitigate risks.
Are centralized exchanges unsafe?
Not inherently—reputable exchanges like Binance, OKX, and Bybit have robust security measures. Diversify holdings and use cold storage for long-term assets.
What’s the best way to start investing in crypto?
Begin with small amounts on trusted exchanges, gradually learning about wallets and security. Never invest more than you can afford to lose.
Can I invest in crypto without using exchanges?
Yes—through ETFs, futures, or stocks of crypto-related companies. However, these may not offer direct ownership of digital assets.
How do I assess an exchange’s credibility?
Check rankings, volume, regulatory compliance, and community feedback. Avoid platforms with promises of high returns and low risk.
Conclusion: Confidence Through Knowledge
I execute over HKD 10 billion in monthly crypto trades. If anyone limits investments to HKD 50,000 due to JPEX, it reflects a lack of understanding—not market reality. Embrace education, choose reputable platforms, and take personal responsibility for your investments. Crypto’s potential remains vast; don’t let fringe events cloud your vision.