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November 11, 2022

The Collapse of FTX — Unsolicited Thoughts

The Collapse of FTX — Unsolicited Thoughts

This week’s big news is the collapse of FTX. Here’s my unsolicited thoughts on the main questions from yet another Crypto brand stealing from its customers.

Doesn’t this prove that Crypto is a scam?

No. But these situations are certainly not helping the case with skeptics and the mainstream. Crypto has a large number of valuable use cases, regardless of bad actors.

If Crypto is not a scam, why does this keep happening?

Greed. The emerging pattern is of founders getting very rich in a short space of time but then being unwilling to accept the losses that have come this year. So they risked customer funds, hoping the market would recover in time to hide their behavior. Like any other new technology, crypto attracts people of high and low integrity.

When is Crypto going to be useful to the average person?

I believe crypto should be hidden in most consumer use cases. The blockchain should make moving money free and contracts automatically enforced. Although NFTs have more consumer use cases, the ideal is most people never have to interact with “cryptocurrency” directly.

Let me know your thoughts in the comments!

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Ash Rust

Ash Rust

Managing Partner, Sterling Road
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