FTX Saga Offers Lessons for Crypto: Says Vitalik Buterin
- Vitalik Buterin remarks that the FTX incident offers a lesson for all in the crypto industry.
- Many exchanges such as BlockFi, Genesis, and Gemini reportedly suffered losses due to the FTX crash.
- Singapore will weigh down on retail-investor access to safeguard its consumers from the volatile market.
Vitalik Buterin, the co-founder of the second largest cryptocurrency Ethereum, in a recent interview with Bloomberg, quoted FTX and stated that the incident offers a lesson for all in the crypto industry.
While emphasizing the development of blockchain technology, Buterin acknowledged the repercussions of the fall of FTX. Soon after the bankruptcy news went live, many exchanges such as BlockFi, Genesis, and Gemini reportedly suffered losses.
Furthermore, Buterin explained:
“What happened at FTX was of course a huge tragedy. That said, many in the Ethereum community also see the situation as a validation of things they believed in all along centralized anything is by default suspect. These beliefs also included putting one’s trust in open and transparent code above individual humans.”
Several crypto Twitter users, including Buterin, have recently weighed in on how cryptocurrency exchanges can boost trust and confidence. Over the past few months, the industry has self-recognized transparency and risk following the downfall of Bankman-Fried.
Furthermore, in a recent interview with The Strait Times, Buterin said Singapore’s intention of becoming a hub for digital assets might not succeed due to the country’s skeptical stance toward crypto.
Buterin further added:
“The willingness to make a distinction between blockchain usage and cryptocurrency is like one of those weird things. The reality is if you don’t have cryptocurrency, the blockchains that you’re going to have are just fake and nobody’s going to care about them.”
Reportedly, Singapore is aiming to weigh down on retail-investor access in order to safeguard its consumers from the volatile market. The government recently announced plans to restrict consumers’ participation in digital assets, including banning small investors from borrowing to purchase coins.
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