{"id":510041,"date":"2022-11-15T03:37:50","date_gmt":"2022-11-15T00:37:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/lets-move-on-from-ftxs-collapse-and-get-back-to-the-basics\/"},"modified":"2022-11-15T03:37:50","modified_gmt":"2022-11-15T00:37:50","slug":"lets-move-on-from-ftxs-collapse-and-get-back-to-the-basics","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/lets-move-on-from-ftxs-collapse-and-get-back-to-the-basics\/","title":{"rendered":"# Let&#8217;s move on from FTX\u2019s collapse and get back to the basics"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2ed54d90621\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2ed54d90621\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/lets-move-on-from-ftxs-collapse-and-get-back-to-the-basics\/#%E2%80%9D_Lets_move_on_from_FTXs_collapse_and_get_back_to_the_basics_%E2%80%9C\" >&#8221; Let&#8217;s move on from FTX\u2019s collapse and get back to the basics &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Lets_move_on_from_FTXs_collapse_and_get_back_to_the_basics_%E2%80%9C\"><\/span>&#8221; Let&#8217;s move on from FTX\u2019s collapse and get back to the basics &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvZGM0ZTU5MzAtNDhkZi00NWQwLTkwNDgtOWZkMmIyMWYxMTk5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-e13e51fa>Pundits are calling the collapse of the FTX exchange the end of cryptocurrency and venture capitalism related to it. But it\u2019s not. Some of them anointed Sam \u201cSBF\u201d Bankman-Fried \u201cThe King of Crypto\u201d \u2014 and then summarily killed the king. But, in reality, crypto never had a king. The end of FTX may mark the end of Americans using unregulated exchanges, and it certainly is the end of exchange-native tokens, but crypto itself hasn\u2019t changed one bit.<\/p>\n<p>In reality, the FTX collapse is a symptom of a deeper problem, which is traditional finance\u2019s \u201cprofit at any cost\u201d mentality. For all the lip service paid to FTX as a regulated entity, at the end of it all, the exchange fell to profit-driven fraud like so many of its traditional counterparts. The stain FTX left behind has no more to do with real crypto than Enron had to do with real oil in the ground. <\/p>\n<p>That brings us to SBF and his roots at quantitative trading firm Jane Street. SBF was a quant trader who asked why you\u2019d ever use a decentralized exchange and then answered his own question by mishandling billions in customer funds. <\/p>\n<p>However, SBF didn\u2019t fail because of his background. Warren Buffet, no fan of crypto, has an oft-repeated quote that <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lies here: \u201cYou only find out who is swimming naked when the tide goes out.\u201d It turns out that SBF was trunkless in that turquoise Bahamian water. He either miscalculated the risk he was taking or ignored it altogether, overleveraging FTT \u2014 his company\u2019s own loyalty point masquerading as a $4 billion market cap store of value \u2014 and lost big on that bet.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>5 reasons 2023 will be a tough year for global markets<\/em><\/strong><\/p>\n<p>It\u2019s time we, as the crypto industry, drop the 10x mentality of seeking to gain enormous profits and focus on the fundamentals that brought so many of us to this world. Crypto was never about the next memecoin or the next x-to-earn application, and absolutely not about minting your own tokens to fund risky business practices. It was about financial self-sovereignty and cutting out the middlemen. <\/p>\n<p>It\u2019s time to get back to this maxim. <\/p>\n<p>Crypto is not a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> of exponential gains and speculative bets. Crypto is about recapturing the 3% rent that the financial services industry exacts on businesses and consumers around the world, daily. Crypto is about programmability and exploring what thousands of smart developers do when you give them an honest-to-truth API for money. <\/p>\n<p>The promise of crypto isn\u2019t just profit \u2014 it\u2019s a system where access to financial services isn\u2019t determined by geography, race, gender or creed. It\u2019s a system free of the middlemen that siphon dollars out of our pockets at every turn, and where greedy actors can\u2019t treat our life savings like their bankroll at the roulette table. By embracing FTX, we just found a new gambler to back.<\/p>\n<p>Crypto winters are always a turning point for digital assets. While the winters destroy value and decimate lives, each winter also leaves us with the legitimate innovations of the last bull cycle. We can choose to let speculation and trading continue to drive our industry, or we can work to disrupt credit card companies, destroy payday lenders, and bank the unbanked. <\/p>\n<p>We can continue to be personality obsessed, or the adults in the room can finally stand up.<\/p>\n<p>It\u2019s time we as an industry mature our processes, systems, expectations for returns, and our goals. There\u2019s a trillion-dollar industry waiting to be created, rewiring the world\u2019s financial system. Financial infrastructure and enterprise software might not be as exciting to some, but it\u2019s marginal efficiencies that will eventually bring crypto to every household in the world, a penny per transaction at a time.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Binance\u2019s victory over FTX means more users moving away from central exchanges<\/em><\/strong><\/p>\n<p>JPMorgan\u2019s recent entry into DeFi is a notable silver lining to this whole cloud. JPMorgan didn\u2019t race to crypto to make multi-legged options bets. They have plenty of ways to make money through trading. No \u2014 their first foray was in an on-chain lending pool, using a high-speed, low-cost network like Polygon to show how, in the near future, you won\u2019t need data centers, mainframes, or hard lines to perform sophisticated financial transactions \u2014 you\u2019ll just need the blockchain. Public, regulated entities like J.P. Morgan are proving that the TradFi system can be upgraded in a thoughtful, compliant and auditable way. <\/p>\n<p>It\u2019s time that we focus on a future where sophisticated enterprises using sophisticated software and processes remove the inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ries from online transactions. A future where people can borrow money at prime +1% instead of the predatory rates that banks charge. A future where folks are paid every second of the working day via a smart contract instead of once every two weeks.<\/p>\n<p>The industry is ready. There are sophisticated tools for monitoring and accounting for your assets (instead of using homegrown enterprise systems with backdoors). There are forward-thinking operators who can design a compliant flow of funds models and audit practices to ensure digital assets remain safe as use cases scale. There are best practices for wallet management and for custodians who are legally obligated to protect your funds and not lend them to others for unhinged trades. <\/p>\n<p>The industry is ready to mature, and if we really want others to opt out of the current, broken system and adopt digital assets, it\u2019s time for us to mature with it.<\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Pat White <\/strong>is the CEO of Bitwave, a back-office digital asset platform that offers accounting, finance and tax services. He previously founded and served as the CEO for companies including Synata, an enterprise search engine, and worked as a chief architect at Cisco. He holds a degree in computer engineering and computer <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/sciencee\/\" data-internallinksmanager029f6b8e52c=\"5\" title=\"Science\" target=\"_blank\" rel=\"noopener\">science<\/a> from the University of Southern California.<\/div>\n<\/div>\n<p><em>This article is for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/can-we-move-on-from-ftx-s-collapse-now-and-get-back-to-the-basics\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Let&#8217;s move on from FTX\u2019s collapse and get back to the basics &#8220; Pundits are calling the collapse of the FTX exchange the end of cryptocurrency and venture capitalism related to it. But it\u2019s not. Some of them anointed Sam \u201cSBF\u201d Bankman-Fried \u201cThe King of Crypto\u201d \u2014 and then summarily killed the king. But,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":510042,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvZGM0ZTU5MzAtNDhkZi00NWQwLTkwNDgtOWZkMmIyMWYxMTk5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74863,74860,74983,135234,89897,74355,70792,4965],"class_list":["post-510041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-decentralization","tag-ftx","tag-sam-bankman-fried","tag-adoption","tag-jpmorgan-chase","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510041"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510041\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510042"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}