The collapse of FTX Vitalik, co-founder of Ethereum, said that the lessons can be applied to all aspects of crypto. Buterin. 

Buterin emphasized the stability of crypto’s so-called underlying technology, the blockchain, while acknowledging the heavy impact of the meltdown Of the Sam Bankman Fried crypto empire.  

Since then, FTX Companies ranging from BlockFi, Genesis to Gemini filed for bankruptcy. 

Despite all the turmoil, Buterin said blockchain base layers and decentralized-finance protocols worked “flawlessly.” 

“What happened at FTX was of course a huge tragedy,” Buterin Bloomberg. “That said, many in the Ethereum community also see the situation as a validation of things they believed in all along: centralized anything is by default suspect,” He said. These beliefs also included putting one’s trust in “open and transparent code above individual humans,” He concluded.

Buterin, like many others in crypto TwitterIn recent days, he has spoken out on how cryptocurrency exchanges could boost confidence in their businesses. A self-reflection by the entire industry has been triggered by the collapse of Bankman-Fried. transparency Risk.

Commenting on the earlier collapse of Do Kwon’s TerraUSD algorithmic stablecoin and associated Luna token, Buterin “crashes like that are on the one hand necessary for the ecosystem.” He added that, however, “I really wish that it happened when Terra/Luna was like 10 times smaller.”

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