11-21-2022 icon

Vitalk Buterin Shares Views Following FTX Crisis

By Lucy Adegbe
Vitalik Buterin

Vitalk Buterin, the co-owner of Ethereum, has conveyed his views and some lessons to be learnt about crypto from the recent fallout of notable exchange FTX.

In a Sunday discussion with Bloomberg, Buterin highlighted that there are lots of lessons to be learnt from the FTX fallout.

He noted that the stable nature of blockchain technology which fuels the operation of the digital currency space has not become an issue for further consideration. The major challenge so far has been the individuals and not the technology.

Also, he called the FTX saga a massive disaster, underlining that a significant portion of Ethereum supporters views the current position as a confirmation of their beliefs so far. “Centralized anything is by default suspect.”

On November 19, the Ethereum network co-owner published a directory to operate a more secure centralized exchange with attached evidence of competence. 

He advised that centralized protocols could develop cryptological backing that displays the sufficiency of their funds kept on the blockchain rather than depending on just “fiat methods” of operations.

The FTX crisis was a result of the protocol’s misuse of its user’s funds making it incapable of pushing through with many withdrawal submissions.

Asides from Vitalk Buterin, Binance chief executive Changpeng Zhao has also noted lessons related to the FTX fallout. On November 17th, Zhao noted that crypto regulation may be important, however, the utmost priority should be for industry leaders to act as good role models.