Vitalik Buterin, Ethereum’s founder recently shared his viewpoint on the FTX disaster. He said that what they had believed from day one has been validated through FTX’s collapse.
He commented that whatever thing is ‘centralized’ is often suspected.
Ethereum Founder’s Take on FTX Disaster
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In the foray of viewpoints discussing FTX’s collapse, even the co-founder of the Ethereum blockchain, Vitalik Buterin, had his views to add.
Buterin, while being interviewed by Bloomberg, said that the FTX disaster is no less than a catastrophe that the crypto industry would never forget.
‘Centralized’ Within Itself Wicked & Foul
He further commented that most of the Ethereum users’ assumption that when ‘decentralized’ is centralized, it gives rise to suspicion. Buterin claimed that this is what happened to FTX also.
FTX was the world’s biggest crypto exchange and was running its business globally as a centralized vehicle like that of Binance and Coinbase.
When the liquidity crisis took its toll, the 32 Billion Dollar valued firm failed to maintain its business and fulfilling its responsibilities toward creditors.
Consequently, the liquidity crisis led the firm into filing for bankruptcy. Apart from facing inevitable collapse, the firm is now also facing allegations of mishandling of customer funds.
According to Buterin, the protocols relating to blockchain and decentralized finance (DeFi) have been working smoothly and are free from flaws.
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He also said that the code, which encourages and promotes transparency and openness, has to be preferred over individuals.
In his past week’s tweet post, Buterin had warned that ‘centralized within itself is wicked and foul’. He then urged DeFi users that DeFi too is prone to grave risks as the bug can be founded even in the smart contracts.
Ethereum Co-Founder’s Views on Collapsed LUNA
Buterin also took the liberty of sharing his views regarding the recently collapsed globally popular crypto known as “LUNA”.
He claimed that LUNA’s crash though was a huge tragedy yet these crashes keep the ecosystem going.
He hoped that it would have been better if LUNA had collapsed when its value was 10 times less than what it was at collapse.
Blockchain and Cryptocurrencies Can’t Be Separated
In an earlier interview recorded by Straits Times, Buterin had raised objections over crypto regulation which the Government in Singapore Government had proposed.
He criticized the attempt by suggesting that it would be preposterous to distance crypto from blockchain and blockchain from crypto. He claimed that without a digital currency, blockchain would mean nothing to anybody.
He stressed that blockchain was by default created for the purposes of digital currencies. Any and all use cases revealed later are in addition to its primary use case of facilitating cryptocurrencies, said Buterin.