Ethereum Co-Founder Vitalik Buterin Discusses FTX Collapse — Says ‘Centralized Anything Is by Default Suspect’

Must read

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH Richard Adrian · 20 mins ago · ...

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil Liam 'Akiba' Wright · 5 hours ago · 2...

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom Christian Nwobodo · 3 hours ago ·...

Upbit’s parent company Dunamu sees profit drop 76% in Q3

Upbit’s parent company Dunamu sees profit drop 76% in Q3 Soumen Datta · 6 hours ago · 1 min read...

Ethereum Co-Founder Vitalik Buterin Discusses FTX Collapse — Says 'Centralized Anything Is by Default Suspect'

Ethereum co-founder Vitalik Buterin says many people in the Ethereum community see the FTX collapse “as a validation of things they believed in all along: centralized anything is by default suspect.” However, he warned that automatically downgrading every single thing former FTX CEO Sam Bankman-Fried believed in “is an error.”

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 Sunday. FTX filed for Chapter 11 bankruptcy on Nov. 11. Buterin told the news outlet:

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.

The Ethereum co-founder emphasized that blockchain-based and decentralized finance (defi) protocols work “flawlessly.” He stressed the importance of putting one’s trust in “open and transparent code above individual humans.”

Buterin cautioned in a tweet last week: “The ‘centralized anything is evil by default, use defi and self-custody’ ethos did very well this week, but remember that it too has risks: bugs in smart contract code. Important to guard against it.”

In a different tweet, the Ethereum co-founder warned:

Automatically downgrading every single thing SBF believed in is an error. It’s important to actually think and figure out which things contributed to the fraud and which things didn’t.

Buterin also commented on the collapse of stablecoin terrausd and cryptocurrency LUNA, now called luna classic (LUNC). While noting that “crashes like that are on the one hand necessary for the ecosystem,” he stressed that on the other hand, “I really wish that it happened when terra/luna was like 10 times smaller.”

In an interview with the Straits Times, published Sunday, the Ethereum co-founder warned about Singapore’s approach to crypto regulation. He stated that the city-state’s “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, blockchains that you’re going to have are just fake and nobody’s going to care about them.”

What do you think about the comments by Ethereum co-founder Vitalik Buterin? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More articles

Latest article

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH Richard Adrian · 20 mins ago · ...

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil Liam 'Akiba' Wright · 5 hours ago · 2...

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom Christian Nwobodo · 3 hours ago ·...

Upbit’s parent company Dunamu sees profit drop 76% in Q3

Upbit’s parent company Dunamu sees profit drop 76% in Q3 Soumen Datta · 6 hours ago · 1 min read...

Research: Whales have been offloading Bitcoin since 2021

Research: Whales have been offloading Bitcoin since 2021 Zeynep Geylan · 6 hours ago · 2 min read ...