Vitalik Buterin’s interview with Bloomberg; Lessons from the FTX crash
The collapse of FTX is the second major crisis that the digital currency market will experience after the collapse of the Terra network in 2022. A crisis that seems to plague this industry for years. While many investors are skeptical about the future of digital currencies, Vitalik Buterin believes that this crisis will improve the situation.
Vitalik Buterin, one of the founders of Ethereum, recently in interview It has been stated by Bloomberg that the fall of the FTX exchange has lessons to be learned for all the activists in the digital currency space.
Butrin, while acknowledging the huge impact of the collapse of Sam Bankman Fried’s digital currency empire on the market, stressed the stability of the underlying digital currency technology, blockchain.
In the days after the announcement of the bankruptcy of this complex, various entities from the BlockFi platform to Genesis and Gemini exchange were affected by the collapse of the FTX exchange.
Despite the chaos, Buterin said the underlying layers of blockchain and decentralized financial protocols are still working flawlessly.
He told Bloomberg:
What happened to FTX was a great tragedy. However, many users in the Ethereum community also see this situation as confirmation of what they have always believed: anything centralized is suspect by default.
He added:
Also, these beliefs include trusting open source and transparent programs more than trusting any human being.
In recent days, Buterin, like many other cryptocurrency activists on Twitter, has discussed how centralized cryptocurrency exchanges can foster trust in their businesses. The fall of Benkman Farid companies caused the industry itself to widely review its level of transparency and risk.
Buterin also said about the collapse of USDT (UST), Algorithmic Stablecoin DoCoin and Luna Token:
On the one hand, it’s necessary for the ecosystem to experience such crashes…however, I wish it had happened when [ارزش بازار] Terra or Luna was 10 times smaller.