Pundits are calling the collapse of the FTX exchange the end of cryptocurrency and venture capitalism related to it. But it’s not. Some of them anointed Sam “SBF” Bankman-Fried “The King of Crypto” — 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’t changed one bit.
In reality, the FTX collapse is a symptom of a deeper problem, which is traditional finance’s “profit at any cost” 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.
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