Vitalik Buterin, the founder of the Ethereum blockchain, gave an interview to Bloomberg on November 20. He mainly talked about the FTX saga and the lessons we could learn from it. According to him, the failure of the exchange represents “a huge tragedyin the crypto space. However, Buterin maintains that blockchain technology remains stable. He suggested that the latter still has a lot to offer, as it hasn’t reached its full potential at all. Find out what Vitalik Buterin recommends to CEXs.
Lessons to be learned from the collapse
During the interview with Bloomberg, Vitalik Buterin said that the crypto space should learn a number of lessons from the FTX bankruptcy. The Ethereum founder explained that the unfortunate event is proof that the problem is with people, not technology. According to him, the collapse of the exchange did not question the stability of the blockchain and the digital asset economy.
Additionally, Buterin took the opportunity to reaffirm Ethereum community members’ position on centralization. He stated : “Many in the Ethereum community also view the situation as a validation of things they have always believed in: anything centralized is suspicious by default.“.
In addition, Vitalik Buterin believes that centralized exchanges must be able to present proof of solvency and avoid relying on fiat methods. These include: government licensing, corporate governance, auditors, and executive background investigations.
He explained that CEXs should create “crypto evidence that shows that the funds they hold on the blockchain are sufficient to cover their liabilities to their users“.
Another view on the consequences of the FTX case
Another cryptocurrency industry leader recently gave his thoughts on the FTX saga. This is Changpeng Zhao who thinks crypto industry players should lead by example more.
Binance’s CEO also believes that a regulation of the crypto industry is needed more than ever. During the Indonesia Fintech Summit 2022, he lamented that the bankruptcy of FTX caused the crypto to pull back a few years.
According to Vitalik Buterin, the crypto sector has great potential that the collapse of FTX cannot call into question. At the same time, Changpeng Zhao believes that the exchange’s failure will cause regulators to analyze the sector “much harder“. “Which is probably a good thing, to be honest“, he added.
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