Vitalik Buterin has spoken out in the wake of the FTX collapse, offering his thoughts and some positives from one of crypto’s biggest black swan events.
Buterin said that the collapse of FTX contains lessons for the entire crypto ecosystem. He acknowledged that the underlying stability of distributed ledger and the technology powering the crypto asset economy has not come into question. The problem in this instance has been people, not technology.
He added that this ethos includes trusting in open and transparent code above humans. Over the weekend, Buterin posted a guide to having a “safe CEX” with proof of insolvency.
He said rather than relying solely on fiat methods such as government licenses, auditors, corporate governance, and background investigations of people running exchanges, the exchanges could create cryptographic proofs that show that the funds they hold on-chain are enough to cover their liabilities to their users.
Vitalik is not the only industry leader recently speaking out about the FTX fallout. On Nov. 17, Binance CEO Changpeng Zhao said that while regulation is necessary, it is more important for industry players to lead by example.
