The Crypto Industry Struggles To Find A Way Forward.

The Crypto Industry Struggles To Find A Way Forward

The collapse of the FTX exchange shows how an industry built after the 2008 financial crisis deviated from its original ideals.

Shortly after Wall Street bankruptcies in 2008, a nine-page document was circulated on obscure mailing lists proposing a new type of financial system that would not rely on "trusted third parties."

This paper became the foundation of the cryptocurrency industry. In rambling, idealistic terms, its supporters rejected the dangerous practices of a few powerful financial firms that caused the Great Recession and vowed to conduct business in a transparent and equitable manner.

But last month, the actions of one cryptocurrency company ($32 billion on exchange FTX) plunged the burgeoning industry into a 2008-style crisis. duplicate them. finished.

A management team that thrived just over a year ago amid cryptocurrency's seemingly unstoppable growth is now struggling to learn from its mistakes and prove that the industry can reclaim its burgeoning ideals. Binance, the largest exchange, announced last month that it would release more information about its financials and hire an independent auditor to verify those disclosures. “We are working on a decentralized system where you don’t have to trust us,” said Coinbase, the largest cryptocurrency exchange in the United States.

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