Fantom Foundation Heist Highlights Needs in Blockchain Industry

• Guy Gotslak thinks the Fantom Foundation heist highlights the blockchain industry’s needs.
• There are needs in two key areas of the crypto industry, including regulations and education.
• The government needs to develop rules specific to companies like Fantom Foundation.

Guy Gotslak, co-founder and president of My Digital Money, thinks the recent crypto theft from a Fantom Foundation-linked wallet highlights needs in the blockchain industry. He spoke with Coin Edition about the impact of the unfortunate event on the crypto industry.

According to Gotslak, there are pressing needs in two key areas of the crypto industry, namely regulation and education. The trading expert believes the United States should develop rules specific to companies or organizations like Fantom Foundation. He believes the type of business and transactions performed by such groups deal with technologies that are too advanced for the existing laws and regulations.

In his opinion, the U.S. government is making fundamental errors in its stance on cryptocurrencies. Gotslak explains that crypto is a novel technology involving global resources like nodes to decentralized processes that are, by nature, designed to be outside the control of any existing government or institutions. Hence, the need for new regulations.

On the users’ side, the crypto expert thinks people need to pay more attention to studying the new technologies. According to him, users should take responsibility and learn what technologies, services, and companies offer robust security before engaging with them.

Shant Kevonian, CEO and founder of EtherMail thinks negative headlines like the reported crypto theft will only exacerbate the sense of trepidation among prospective market participants. However, he believes with regulatory frameworks being developed and implemented, the future crypto landscape will place a much greater emphasis on robust security measures.

Kevonian believes the theft from the Fantom Foundation-linked wallet highlights a persistent challenge within the crypto industry – the difficulty in tracing and recovering stolen funds once they leave a victim’s wallet. According to him, while the industry has made strides in enhancing security measures and implementing certain safeguards, such as multi-signature wallets, the inherent trade-off between security and user autonomy remains.

The EtherMail founder explains that the complexity of setting up a crypto wallet and the perceived risks of making errors when sending digital assets or funds being stolen have proven to be a major deterrent for Web2 users. He thinks more user-centric solutions are needed to make the Web2/Web3 transition more seamless and secure. He also believes that robust security protocols that are easy to manage will help bolster user trust in the digital assets ecosystem.