OPINION: Despite the magnitude of the FTX fiasco, its former CEO Sam Bankman-Fried is just a small part of a much larger problem: a shockingly low level of understanding of what cryptocurrencies are and how to use them.
The past two weeks have been a rollercoaster ride for crypto, and a good chunk of the chaos can be attributed to one individual.
This is a widespread issue that every current and potential crypto investor should be aware of: There is a shockingly low level of understanding of what cryptocurrencies are and how to use them. In its early days, crypto grew and thrived precisely because users understood one key concept: If you don’t own your keys, you don’t own your crypto. It used to be that you’d maintain a cryptocurrency wallet instead of entrusting your money to an exchange.
Centralized exchanges such as these are putting investors back to square one by forcing them to give up control of their assets and reintroducing the middleman. According to them, the problem will be solved by regulating all exchanges and possibly outlawing the use of decentralized finance altogether.
With that being said, the FTX ordeal remains a harsh reminder of something we already knew: Centralization is the true enemy of crypto.
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