as a sudden fall down As major crypto exchange FTX continues to wreak havoc on markets around the world, US blockchain company Ripple’s chief technology officer David Schwartz believes that only implementing a system of automated checks and balances will prevent various crypto executives from repeating the mistakes. can be stopped. Former CEO of the exchange, Sam Bankman-Fried.
Ripple’s CTO believes that, “if you hold billions of other people’s dollars indefinitely, the temptation to speculate with those funds is irresistible if there are no verifiable checks that virtually eliminate such risk.” make it impossible, nothing else will suffice.”
According to Schwartz, regulatory oversight alone is unlikely to prevent similar incidents from occurring.
“Regulation that punishes after the fact will not catch it. Investors will not even do due diligence. They will be rattled by allegations of harassing the system,” according to the executive.
Schwartz concluded that, without a system in place that prevents crypto executives from making extremely risky investment decisions using their customers’ and investors’ money, things like this will always happen until it does. can. The temptation is irresistible. This is one of the most important lessons in FTX. But most people will actively choose not to learn this lesson.”
The bankruptcy of FTX and the role played by Bankman-Fried in tanking his company have led several prominent figures from the cryptosphere to reflect on the importance of transparent and responsible leadership as examples.
among others, Ethereum (ETH) co-founder Vitalik Buterin recently Recognized There is a need to introduce regulations that will drive away those who want to use blockchain technology for personal gain at the expense of everyone else.
“The thing about the cryptosphere is that it is high variance, and if you achieve a certain kind of reputation, it becomes very easy to accidentally attract all the Do Kwons,” the entrepreneur said of the highly controversial co-founder. Giving reference. collapsing terra stablecoin
“It’s certainly true that if a country isn’t smart about it, they can easily get caught as a base of do kwon do people. And that’s not necessarily something a country would want,” according to Buterin.
Meanwhile, as Ripple’s legal woes with the US securities regulator continue, earlier this month, the Securities and Exchange Commission (SEC) requested The deadline for submission of all short replies in support of the trade be extended to 30th November, 2022.
The firm’s legal troubles with the SEC have long cast a shadow over Ripple’s expansion plans. The US regulator’s case against the firm focuses on allegations that its token is an unregistered security.
Bitcoin Crypto Related Post