After the collapse of FTX, Ethereum’s cofounder, Vitalik ButerinHe has shared his thoughts on one of the most significant “black swans” in cryptocurrency industry history, along with some positives that have resulted from it. After the collapse of FTX, Buterin spoke out.
Bloomberg interviewed Buterin on November 20. He highlighted his belief that the collapse of FTX could be a learning opportunity for the rest of the cryptocurrency industry.
He said that both the fundamental solidity and technology that power the bitcoin asset markets have not been questioned. He was referring specifically to the fact that no regulatory oversight has been applied to the market.
Buterin also referred the collapse FTX exchange to as a “big catastrophe”, but he added that it supports centralization stances that many members of the Ethereum community take. This was his explanation of why the exchange failed.
He clarified that this philosophy was built on the belief in transparent and open code, rather than humans. This was one way that the philosophy can be used, he stated.
Buterin released a guide about how to run a secure CEX over the weekend. The guide shows that the company’s bankruptcy proceedings are underway.
Most people agree with the statement that FTX is currently in the predicament it is because it used customers’ money to buy things that were not planned.
After receiving many withdrawal requests at once, the exchange quickly realized that it couldn’t meet the withdrawal demand with the liquidity available. After receiving a lot of withdrawal requests at once, the exchange realized that it was unable to meet this demand with the liquidity it had.
Vitalik Buterin is the only other major player in the industry to speak out recently against the effects of FTX, but he is not the only one.
Changpeng Zhao (CEO of Binance), stated on November 17 that regulation is necessary but it is more important to set an example for the industry than for regulators to regulate it. In response to a question on regulation, he said that regulation was necessary.