Alex Mashinsky, the chief executive officer (CEO) of the bankrupt crypto lender Celsius, has become the latest person to resign from the top post after he put in his papers last week.
Mashinsky’s resignation last Tuesday has left many investors uncertain, which has been the case following similar moves by other crypto exchange CEOs in recent times. The spurt in CEO departures has raised serious concerns over investors’ deposits in crypto exchanges.
In August, the media reported that ZebPay CEO Avinash Shekhar quit the oldest crypto exchange to start his startup in the Web 3.0 space. His new venture will reportedly deal with crypto tax compliance issues.
Likewise, in February 2022, WazirX co-founders Nischal Shetty and Siddharth Menon quit their day-to-day roles in the organisation, India’s leading cryptocurrency exchange backed by Binance. Shetty started his Web3 project Shardeum, while Menon focused on the Tegro marketplace for game assets.
What Do CEO Resignations Mean For Investors?
Edul Patel, CEO and co-founder of Mudrex, a global crypto investment platform, said investors’ money would not be lost if a CEO resigns. Instead, it could usher in changes in the organisation. Protecting investors’ capital is the core principle of every exchange, although they may have different value sets.
Industry estimates show that countries like India have over 10 million crypto users, highlighting the importance of safeguards in the crypto space. The global crypto market hovered around $954 billion in recent days.
Prashant Kumar, founder and CEO of crypto platform weTrade, said depositors should be mindful of market risks like any other investment, especially in cryptos, for their high price volatility. However, he added that depositors should be “wise and thoughtful” while making crypto investments.
Will Resignations Impact The Crypto Industry?
Founder and CEO of Cashaa, a Neo crypto bank, Kumar Gaurav, said, “Normally, when the market goes up, we do not see many changes in the senior leadership. But in a bear phase, it becomes more evident due to market and shareholders’ pressure.” Gaurav believes market cycles could remove not only the unfit companies from the business but also the people associated with them.