On one side, this will cause a massive trust issue in the crypto space, especially for the normal folks the crypto space was working so hard to attract for mass adoption.
Now aside from the loss that this is representing, we must at all times try to make the best out of the worst, like, try to turn trash into gold. So first i will have to say to not just trust someone's thoughts on the internet, I'm just an unknown mate with a keyboard, with this in mind, i believe that DEX(Decentralized Exchanges) are going to boom after this event gets to its conclusion.
I believe we're going to see a massive activity towards DEX, whether because of fear or knowledge, i believe folks now are starting to understand the dangers that lies within CEX(Centralized Exchanges), after all. "Not your Keys, Not your Cryptos".
So my idea for turning trash into gold, will be to eyeing DEX tokens and maybe look for potential short opportunities that this FTX event may provide.
I agree with this almost in entirety, except I think you missed most of the short opportunities already. Most of the selling has already taken place in my opinion. The FTT token may be an exception that could still go to zero though, so there is that. Apart from that I agree, the fallout will be crypto being stored on self hosted wallets, use DEXs to exchange, and centralized exchanges will be required by regulators to have a lot more transparency going forward.
indeed, most of the selling has already taken place, however i believe it may not be over just yet, somehow i believe that FTX was just the first domino, however i must admit that this is just based on recent events reaction such as Luna Crash, Voyager, Celsius... so i believe this will lead to other projects to fall and out of all the reasons, Fear may be the critical one, but for now i'll just watch and wait for opportunities.
There may certainly be collatoral damage, but I don't think it will be large enough to have a material impact on the crypto markets looking out several months from now. For that reason I think bitcoin is likely getting close to a bottom already. I wouldn't touch most altcoins, but buying bitcoin on this latest plunge and looking out several years from now seems like a decent bet to make.
I agree, on the long run, buying Bitcoin amidst this drop it is going to pay off.