Leading cryptocurrency exchanges should create a single mechanism for a trading halt in emergency situations, said Tushar Jain, managing partner of Multicoin Capital Investment Fund.

He noted that what is happening on the market “is a strong argument” in favor of his argument.

A similar mechanism is used in US stock markets. This week it was used twice – on March 9 and 12.

Jain also said that the DeFi ecosystem “nearly died” amid a market crash. Many traders did not manage to raise funds due to network congestion, he stressed.

“If we just all need to accept that crypto can drop by 60%+ in a day that *severely* limits the usefulness of this tech. Exchanges’ incentives are aligned with market growth. If markets can drop 60%+ in a day, the addressable market for this tech is much smaller,” Jain wrote.

ShapeShift cryptocurrency platform CEO Erik Voorhees disagreed.

Jain responded by emphasizing his concern that “DeFi cannot be sustainable if the whole ecosystem could get liquidated in less than 24 hours. That was a real risk today..”

Recall that several large bitcoin exchanges announced problems in their operations against the backdrop of a market collapse