- Cardano’s co-founder said that ‘crypto didn’t fail but people failed’.
- FTX’s case can damage the industry or possibly offshore the American crypto industry.
- He suggested honest and better standards for exchanges and DeFi, smart contract etc.
In his latest YouTube video, Cardano’s Co-founder, Charles Hoskinson spoke on the bankruptcy of FTX and said that ‘crypto didn’t fail but people failed’. He also said crypto might see tougher laws in the future after the FTX episode.
Hoskinson emphasized that ‘when people who don’t know what they’re doing get into positions of power, such a catastrophic consequence is what can be expected’.
He predicted that there’s a very high chance that the fallout of this will somehow affect legislation as he hoped that it might be a positive effect. However, there’s an alternative, in which case members of the crypto industry will have to live with it and find ways to deal with it.
Hoskinson elaborated that even with FTX’s push for lobbying through relationships with politicians, things didn’t work out. As a result, lawmakers can toughen up regulatory scrutiny. FTX’s case can damage the industry or possibly offshore the American crypto industry.
Hoskinson talked of several warning signs pointing at the imminence of FTX fate including issues like the talents at FTX, the governance of the company, fiscal strategy, and the firm’s public statements.
Hoskinson stated:
As much as we like to believe in the principles of cryptocurrency this had everything to do with people putting their money in centralized exchanges and organizations entrusting centralized businesses to do something on their behalf that’s the very industry we’re trying to get rid of with the cryptocurrency space.
The co-founder blamed the financial relationships of FTX for the insolvency as he highlighted the fact that crypto doesn’t get a bailout.
Nevertheless, Hoskinson believed that the best days of the crypto industry are yet to come and that unlike Mount Gox or Celsius or Luna, FTX can change the way how cryptocurrencies work in America. Hoskinson said that Cardano will announce the Edinburgh decentralization index to measure the decentralization of the exchange of cryptocurrencies. He suggested honest and better standards for exchanges and Defi, smartcontracts, security standards, and some ethical functionality standards.
Hoskinson also asked people to see cryptos for their use, utility, and adoption and not just as a way to get rich quickly.
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