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When crypto is not crypto anymore

Photo by Tim Mossholder on Unsplash

When crypto is not crypto anymore

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xuanling11
·Nov 24, 2022·

2 min read

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Anything can happen in crypto now...

SBF still are walking free despite $10B missing from his crypto exchange. He will give a speech on Nov. 30th...

What he will discuss then?

How do I blow up $10B but survive, or how do I save crypto with only $500M margin calls?

Anyway...

Crypto has been detached from its original mission.

Transparent, trustless, and permissionless are deja vu now.

Transparent becomes questionable third-party audits. Trustless becomes trust me bro vibe. Permissionless becomes make investors' money hostage.

Some could argue that they are all within centralized crypto exchange.

But the fact is centralized crypto exchanges played major roles in mainstream adoption, and there is no way one will ignore them to move crypto forward.

Yes, there are many decentralized options of crypto, and they have yet to be tested.

Of course, I am not rooting for a centralized crypto exchange, but you do not expect 70 years old grandma to have a private wallet and hold it with her own private key at some ledger drive around the house. You still need crypto services to help people who are not digitally native.

That is where centralized crypto exchange comes to play a crucial role.

However, regulations fail in the FTX incident to protect users.

What we have learned is to hold your own wallet and continue pushing centralized crypto exchanges to become more accountable.

We cannot trust anyone to protect our own funds, but we ask collaboration between centralized crypto exchanges and users to protect assets with contracts that cannot be immuntable and permissionless.

I think the crypto industry has to move toward accountable technology that performs due diligence to human operations, providing secondary safety to prevent bank runs and the exchange of withholding users' funds for hostages.

If any crypto services cannot meet the standard of users' protections, users should not put their funds in their hands.

Users' funds' protection is a priority.

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