Ethereum founder Vitalik Buterin talked about the effects of FTX’s bankruptcy on the altcoin market. He said founder Sam Bankman-Fried’s recent political games were one of the main reasons.
Vitalik Buterin says political moves triggered the crisis
Buterin cited FTX CEO Sam Bankman-Fried’s donations to political leaders. He said that the crisis that directly affected the market was caused by this. The Ethereum founder says FTX’s headquarters are in the Bahamas due to pressure from US regulators. He also stated that the location was chosen in part because of the lack of a regulatory framework like in the US.
Crash doesn’t mean failure for these altcoins
Buterin, FTX, “was an exchange run by someone who was very politically committed and apparently went to great lengths to get a letter of inaction from the SEC. He donated large sums to politicians of all kinds. That was the reason for his bankruptcy.” He also adds that despite bankruptcy, there are a few big-ticket projects like Ethereum. According to Buterin, the depreciation of Solana (SOL) also does not mean the failure of the project.
DeFi and personal storage options work better, according to Ethereum founder
Buterin said that people are forced to prefer centralized ones over decentralized platforms. This is because centralized exchanges provide convenience in storing cryptocurrencies. In his own words:
It still seems difficult to set up a wallet yourself. You have to find a way to have secure wallets, you have to carry your hardware wallet with you and write all the words and many complexities. But centralized options provide obvious convenience in this regard.
The bankruptcy of FTX, the third largest cryptocurrency exchange in the world, sent shock waves to the cryptocurrency market, scaring millions of investors and further confusing the cryptocurrency markets. However, what initially seemed like another example of an overly leveraged crypto firm going bankrupt due to the price volatility of its native token has now opened up a can of worms that could undermine the stability of the entire crypto ecosystem.
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