The founder of Ethereum shares lessons learned from the FTX crash
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Answer The founder of Ethereum shares lessons learned from the FTX crash
After the failure of FTX, Ethereum co-founder Vitalik Buterin shared his thoughts on one of the most important “black swan” events in the cryptocurrency industry, as well as some of the positives that emerged from the collapse of FTX.
During an interview on November 20, he told Buterin that the collapse of FTX could be a learning moment for the rest of the cryptocurrency industry.
He admitted that the fundamental solidity of the blockchain network and the technology that underpins the crypto market has not been questioned.
He also pointed to the fact that the market has not been subject to any regulatory scrutiny.
Buterin also referred to the collapse of the FTX trading platform as a great tragedy, but said he supports the position that many people within the Ethereum community take regarding centralization.
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Reasons for the collapse of FTX according to the founder of Ethereum:
The founder of Ethereum went on to explain that one of the foundations of the crypto market philosophy is to place more trust in open and transparent code than in humans.
Most people agree that the main reason FTX exists in the current situation is that it used the funds deposited by users for other things than what the platform had planned.
After receiving a large number of withdrawal requests at once earlier this month, the platform quickly realized that it was unable to meet the demand for withdrawals with the liquidity it had available.
The platform discovered that it was powerless against large withdrawal requests after receiving a large number of requests at once.
On November 17, he told the CEO of Binance, that while regulation is necessary, it is more important for industry players to lead by example than for regulators to regulate the industry.
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He made this statement in response to a question about whether regulation was necessary or not.
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