Quote:
Originally Posted by JohnnyB
In the case of FTX that includes idiots like BlackRock, Sequoia, Tiger, and the OTPP.
Regulation is definitely needed, especially with regards to transparency and leverage on centralized exchanges. If Alameda hadn't been engaging in high-risk and highly leveraged trading, and Sam Bankman-Fried hadn't bailed them out with user funds while also allowing users to trade with loads of leverage, FTX may well have had no problem in this crash. Fortunately, after this event many of the big exchanges are now committing to provide proof or reserves. Binance apparently may have in excess of $60B in reserves, so it's not like it can't be done properly. Meanwhile decentralized exchanges are also generally ticking along just fine and hopefully they will have wider adoption as user experiences become less cumbersome.
The next wave of adoption I think will also largely come with most people not even being conscious of the fact that they're using something on a blockchain, and there will be some greatly improved user experiences. Hopefully we get progress on meaningful regulations and standards that protect those users by that point too.
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Doesn't regulation completely defeat the purpose of Crypto though, along with completely destroying it's advantage over conventional banking?