Cryptocurrencies per se certainly have nothing to do with the dramatic fall of FTX according to Marieke Flament, CEO of NEAR Foundation. Human error is the only cause, and regulations won’t solve anything. The solution is elsewhere.
Marieke Flament: Cryptocurrency derives its value from greed
Cryptocurrency is a speculative asset. Currently, she derives her value primarily from greed and relies on the greed of others with the hope that this regime will continue until the house of cards collapses. After that, people are drowning in losses. Taking this reality into account, Marieke Flament, current CEO of NEAR Foundationargues that this greed, coupled with manipulation, explains the downfall of FTX.
Manipulation and deception remain uncontrollable human errors, she says. We have to face the facts, humans are not trustworthy. Also, those who believe that clearer regulations can fix things are wrong. No regulation will be able to curb these flaws. Marieke Flament assures that crypto, like traditional finance, suffers from these human errors.
Unleashing the potential of blockchain is the solution
The aftershocks of FTX’s collapse in the crypto market continue to spread and impact the market. Recovery will be difficult, but not impossible, especially if the ecosystem finds the right solution. This solution is transparency and decentralization. Basically, you have to take advantage of the blockchain and favor decentralization. According to Marieke Flament, FTX evolved in a closed circle, which made it a somewhat centralized entity. This is the mistake not to make.
We must insist on decentralization and demand transparency from the largest exchanges. Moreover, exchanges must be based on ideals. Above all, they must not be motivated by greed. This creates a neutral and healthy environment for consumers. The ecosystem must take advantage of this period of crisis to purge and highlight transparent, decentralized companies, driven by ideals and convictions.
Cryptocurrency has a bright future ahead of it. This is only the beginning of a new era. Regardless of the crises, you just have to learn from the mistakes of the past. The only way forward now is decentralization.
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