Crypto is an industry of extremes. One day the markets are euphoric; the next day billions of dollars vanish in sudden liquidations. Resilience is a crucial factor for everyone who wants to build something in the crypto world. Recently, a panel named Thriving Through Turmoil discussed the ways of risk management, shock adaptation, and learning from mistakes.
Panelists: Stephan Lutz (BitMEX), Robin Wingardh (Wingbits), Sami Waittinen (Trust Wallet)
Moderator: Karine Arama (SGH Capital)
What Resilience Means in Crypto
The panel began by asking a simple question: what does resilience mean in crypto? Stephan Lutz described it as part of BitMEX’s DNA. The exchange, which introduced innovations like the perpetual swap and socialized loss model, almost went under in its early years. “It took the founders more than three years to get the model right. Resilience was built into our DNA from day one,” he said. For Stephan, the rapid pace of crypto is not just a challenge; it is a constant driver to adapt and improve.
Robin Wingardh shared his broader perspective. He sees resilience as the capacity to push through long periods of difficulty. Sami Waittinen added a user perspective. For Trust Wallet, resilience means creating a secure and predictable experience for users even when markets are volatile.
The Recent Market Shock
The panel turned to the market shock of October 10, when 19 billion dollars in leverage disappeared and 1.6 million accounts were liquidated. Stephan pointed out that this was different from previous crises. In 2022, the main problem was trust and missing collateral. In 2025, the problem was user behavior and overexposure. BitMEX weathered the storm better than most because of an automated insurance fund, no proprietary trading, and a risk-first approach. As Stephan noted, rules that feel strict in good markets end up protecting the system when things go wrong.
Self-Custody Under Pressure
Sami explained how users react during crises. Self-custody activity spikes when trust in exchanges falls. People move funds off exchanges to regain control. The wallet itself is usually strong. The real risk comes from phishing, malicious dApps, and impersonation. Trust Wallet focuses on giving users a steady experience, strong security warnings, and education about seed phrase safety. Avoiding major interface changes during market stress is also key. In a volatile market, self-custody becomes a stabilizing anchor.
Adapting Through Innovation
Robin mentioned Wingbits, which is a decentralized flight-tracking network. The volatility of the financial market led to some difficulties in terms of attracting contributors and keeping the community active. Wingbits has advanced its reward system by evolving from testnet tokens to benefits, which include USDC and services like airline miles. The launch of the token was postponed to prioritize long-term sustainability instead of running after market timing. Robin explained that most token launches happen too early. In Web2, businesses mature for years before going public. In Web3, communities expect tokens immediately, which can be the wrong approach.
What Could Really Break Crypto
Stephan, when questioned on the subject of possible threats, pointed out concerns like trust, immutability, and decentralization. He further concentrated on the big Layer 1 failures. Power cuts, mobile networks, or large-scale cloud infrastructure could disrupt a crypto-reliant system. He advised the audience that the system is made to deal with decentralization failures, but a widespread connectivity drop is still a major risk.
