Following the collapse of FTX, Vitalik Buterin, the co-founder of Ethereum, outlined lessons the cryptocurrency industry should take away from the collapse while also emphasising its significant impact on the sector.
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Technology is not the issue
Regarding the FTX crash, Vitalik Buterin stated that people, not technology, are to blame. Buterin accepted the resilience of the blockchain, the purported technology behind cryptocurrencies.
The blockchain-based layers and decentralised finance (Defi) protocols functioned "flawlessly," according to Buterin, who has argued against discrediting anything FTX CEO Sam Bankman-Fried did despite allegations of "fraud."
The co-founder of Ethereum, Buterin, called the FTX collapse a "major tragedy," but he also noted that it has lessons for the entire crypto industry.
Increased Demands for Decentralization Following the Collapse
Buterin asserts that the failure of FTX confirms the Ethereum community's widespread belief that "centralised anything is by nature questionable" and that decentralisation is preferable.
Buterin continues by saying that as a result of the FTX scandal, many members of the crypto sphere now place more faith in "open and transparent code than individual humans."