The collapse of FTX has deeply shaken the crypto market. But this is not the first time that space has experienced significant turbulence linked to the failure of an exchange. The fall of Mt. Gox, an exchange that oversaw 80% of all Bitcoin trading in February 2014, did the same. Its former chief executive – Mark Karpelès – was arrested in 2015 and later acquitted on multiple counts four years later.
While admitting that Karpelès did “a lot of horrible stuff”, the co-founder of Ethereum, however, believes that the former head of the defunct Tokyo-based exchange has become an honorable man.
Who is a bigger villain?
For many, the FTX explosion is a sad reminder of how Mt.Gox, the original Bitcoin exchange, fell into disrepair over eight years ago. But the latest seems much bigger because it not only dragged space into a near-permanent bear market, but also transformed Sam Bankman-Fried from a billionaire savant and industry savior into a virtually dubious corporate villain. day to day.
Although he was acquitted by the court in 2019, the verdict said Karpelès had inflicted “massive damage to the trust of his users” and added that he had abused his status and authority to commit crimes. intelligent criminal acts. Karpeles and Bankman Fried have similarities, but according to Buterin, the former held up better after the explosion.
During a recent maintenance with Bankless co-owner David Hoffman, the Ethereum leader said,
“Actually, I feel like the way he behaved after the explosion was pretty honorable. He didn’t try to give himself a Su Zhu-style redemption arc. I kept quiet. for a while and i have been working diligently to help people get their money back its like bad guys are lower quality now mark has improved in ways that i sadly don’t expect to people like Su and Kyle getting better, even a decade from now. I really hope I’m wrong.
Buterin claimed that the 2014 explosion felt like an existential crisis for the crypto market as well as a huge crash for Bitcoin. “It was an invitation for regulators to branch out into space,” he added. But he also thinks the 2022 meltdown will be harder to overcome.
Bitcoin Adoption Curve
Several projects have been the target of maximalist critics calling them distractions and/or rip-offs. The movement started by Bitcoin Maxis – helped the adoption of the first crypto to some extent. But the same strategy might not be useful for future growth, according to Buterin, whose own Ethereum has been the most consistent and high-profile target of this vocal group.
“A community with very high variance, high excitement, and a high disabling approach to existence is a very good strategy when trying to increase adoption from 0.1% to 10%. But it’s a terrible strategy if you are trying to increase adoption from 10% to 70% crypto is no longer at the stage of going from 0.1% to 10% space is at the level of trying to get 10 % to 70% and it requires different strategies.
Bitcoin, which has long been touted as a store of value, failed this year’s test, but Buterin remains hopeful about the narrative. He also said crypto could experience a similar adoption fate to Linux in developed countries, but added that the asset class could become “ubiquitous” in the developing world.