Ethereum co-founder Vitalik Buterin says many people in the Ethereum community see the FTX collapse “as confirmation of things they’ve believed all along: centralized everything is suspect by default.” However, he warned that automatically downgrading every single thing former FTX CEO Sam Bankman-Fried believed in “is a mistake.”
Vitalik Buterin on FTX Meltdown
Ethereum co-founder Vitalik Buterin shared his thoughts on the failure of cryptocurrency exchange FTX and former CEO Sam Bankman-Fried (SBF) in an interview with Bloomberg, published on Sunday. FTX filed for Chapter 11 bankruptcy on November 11. Buterin told the news agency:
What happened at FTX was of course a huge tragedy. That said, many in the Ethereum community also see the situation as confirmation of things they’ve believed all along: centralized everything is suspect by default.
The Ethereum co-founder stressed that blockchain-based and decentralized financial protocols (defi) work “flawlessly.” He emphasized the importance of trusting “open and transparent code over individual people.”
Buterin warned in a tweet last week: “The ‘centralized everything is evil by default, use defi and self-storage’ ethos did very well this week, but remember it also has risks: bugs in smart contract code. It’s important to protect yourself from that.”
In another tweet, the Ethereum co-founder warned:
Automatic downgrading of every single thing SBF believed in is a mistake. It’s important to actually think and figure out what things contributed to the fraud and what things didn’t.
Buterin also commented on the collapse of the stablecoin terrausd and the cryptocurrency LUNA, now called luna classic (LUNC). While noting that “crashes like this are on the one hand necessary for the ecosystem,” he emphasized that on the other hand, “I really wish it happened when terra/luna was about 10 times smaller.”
In an interview with the Straits Times, published on Sunday, the Ethereum co-founder warned about Singapore’s approach to crypto regulation. He stated that the city-state’s “willingness to distinguish between blockchain use and cryptocurrency is like one of those weird things… The reality is that if you don’t have cryptocurrency, the blockchains you’re going to have are just fake and nobody’s going to care about them .”
What do you think of Ethereum founder Vitalik Buterin’s comments? Let us know in the comments section below.
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