By now you have probably heard of the FTX blowup and Sam Bankman Fried. Ultimately, he fraudulently gambled away customer deposits and mislead investors.
This not only caught the attention of mainstream media across the world but also led people to question the future of cryptocurrencies. That is why in this article, I will be answering whether Sam Bankman Fried killed crypto. So without further ado let’s jump right in.
So first off, just based on price action alone you could argue that the asset class is dying. Bitcoin is down 70% and popular altcoins are down 90% +.
Not to mention, crypto regulators are licking their lips at the potential laws they can impose on this novel asset class. But this is not anything new.
Bitcoin has endured drawdowns of this caliber in the past. In 2017 it suffered an 84% decline and in 2013 an 83% decline. Both times it was declared dead but somehow it came back.
Now you may think that the recent revelations with SBF are different, but the industry has always been dominated by hackers and scammers and it still chugs along.
Ultimately, the benefits of technology have offset these bad actors. Not to mention, the whole FTX situation is a failure of centralized control. It was a closed-off group of corrupt individuals who gambled customer deposits.
This is the antithesis of cryptocurrency ideology and is a clear advertisement for the importance of a decentralized system. With cryptocurrency, users are sovereign individuals who control their assets with the dodgy middlemen cut out of transactions.
In other words, transactions are peer to peer and the trust is placed into code rather.
Therefore, cryptocurrency solves the very problem that FTX and other centralized exchanges represent. Ultimately, corruption and misuse of assets are next to impossible with cryptocurrencies as all transactions are openly verifiable on the blockchain.
If you want to view this article in a more visual format then please check out my video below:
So to sum it all up, no Sam Bankman Fried has not killed crypto. Regardless of the situation at hand, crypto continues to develop with millions upon millions of people entering the space and in my opinion, there is still a real demand for a censorship-resistant form of money whereby people have custody over their assets.
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