The October 10 liquidation event had a profound impact on the crypto industry — one comparable in scale and consequence to the collapse of FTX.
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1. Accelerated the capital divergence between BTC and altcoins.
No serious investor will allocate capital to assets that can plunge 60–70% within minutes.
This event shattered confidence in altcoins as an investable asset class.
Many once believed that new “DAT” narratives could attract external liquidity — that belief has largely evaporated.
2. Reshaped the regulatory landscape for offshore exchanges.
Leading exchanges bear significant responsibility for this event.
Although offshore trading has long existed in a regulatory gray zone, the sheer scale of losses — spanning retail traders, whales, and market makers — makes regulatory silence impossible.
As with FTX and Mt. Gox, once the damage reaches this magnitude, oversight inevitably follows.
Some industry standards will be rewritten permanently — and this time will be no exception.
3. Forced centralized exchanges to confront their legacy systems.
Most exchanges still operate on outdated infrastructure, particularly in spot trading.
Their throughput lags far behind traditional venues like Nasdaq — not due to a lack of capital, but because of years of accumulated technical debt.
They’re like old machines patched with new parts — functional yet fragile.
Rebuilding from scratch would be risky, costly, and massively disruptive.
In software, there’s an unspoken rule: if it still runs, don’t touch it.
After all, who would pause a money printer processing billions every day just to start over?
But a single flaw, if triggered at the wrong moment, can cascade into a full-scale meltdown — even putting executives in legal jeopardy.
It’s time for exchanges to face their technical debt.
In finance, when things reach the extreme, a technical problem quickly becomes a legal one.
4. Paved the way for DEXs to rise where offshore CEXs failed.
The lack of clear regulation around offshore CEXs has always been a structural weakness.
From a game-theoretic standpoint, expecting these venues to self-regulate is unrealistic — unfair liquidation queues, opaque ADL systems, hidden leverage, and recurring fund-safety concerns have long exposed participants to systemic risk.
Hyperliquid isn’t perfect, but its transparency makes those flaws tolerable.
The 10/10 liquidation could mark a watershed moment — drawing a new generation of top builders into the perpetual-DEX space.
This is where the next chapter of innovation and trust in crypto will begin.
Today we are launching Monad Cards - an initiative to give Crypto Twitter a token of appreciation.
Around 5,000 real members of CT have been identified through a reputation network-based approach designed to reflect the social graph of CT. This was done by looking at accounts followed by numerous reputable people across various crypto verticals. Each member was then given a handpicked role in an effort to identify the unique value they provide to the crypto community.
We know that it is impossible to fully capture the social graph of CT on our own. This is why card claimers can then nominate mutuals to capture those that were missed. Each eligible member can nominate up to 3 of their mutuals to claim a Monad Card later on. There are 10,000 nominations up for grabs on a first come, first serve basis.
Also, apologies in advance, but I am going to tag each member of CT who is eligible to claim a Monad card in a thread on this tweet. Claim your card now at https://t.co/ZDQx88Rvn9 and nominate your mutuals before it's too late!
Thank you.
A sword pulled from the corpse of a dead god. A Miiium-born hero, Adam, on a quest to free the captured goddess Iltar.
Guided by a crystal compass, will you join us?
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