It has almost been over a week since the FTX fallout, and the market has yet to recover. FUD (Fear, Uncertainty, and Doubt) is prevailing in crypto and a lot of discussion is being done about the overall consequences.
Recently, Ripple CTO, David Schwartz has tweeted a thread on social media platform. In the thread Schwartz highlighted the lesson that, in his estimation, will never be learned from the fallout.
There are a few lessons that should be learned from the FTX fiasco, but there’s one important lesson that is really pretty obvious in retrospect and that I can say with total confidence will not be learned. 1/4
— David “JoelKatz” Schwartz (@JoelKatz) November 22, 2022
He said that when an individual holds billions of dollars for an indefinite period of time, there is an unavoidable temptation to speculate with them. Schwartz noted the only way to prevent exploitation of people’s funds is verifiable checks that must be put in place, nothing else would be sufficient. The CTO stated:
“Regulation that punishes after the fact won’t catch it. Investor due diligence won’t either”.
According to Schwartz, while many say that it is being done, they will be silenced by the accusation of spreading the FUD, which causes the market to make losses.
Schwartz added that until the control system is implemented that makes exploitation undoable, it will continue to happen. Still most people will avoid doing it ‘because of, among other things, the telephant in the room’.
In another tweet Schwartz labelled Nobel laureate, Paul Krugman’ comments on the general state of crypto and specifically FTX fallout, ‘absolutely outrageous’. Paul Krugman had recently stated that everything about crypto is fraud and. That the Sam Bankman-Fried (SBF) did not do any wrong in taking the money from frauds and giving it away for good causes.
This is absolutely outrageous for many reasons. I have no words. https://t.co/q6lHh6EX3v
— David “JoelKatz” Schwartz (@JoelKatz) November 24, 2022
In the meanwhile, the market has seen a slight recovery in the past couple of days. Bitcoin has been sustaining above $16k for some time now and it seems to be gearing up for a upwards move to $18k.