The United States Securities and Exchange Commission (SEC) has filed charges against Sam Bankman-Fried, the former CEO of now-bankrupt crypto exchange FTX. The news can be seen all over the place. Many people looking at the deFi/Crypto industry are fearful that this is another example of danger surrounding the market. It is another big black eye for the world of cryptocurrency. But is it really?
The cryptocurrency world has always been a kind of “Wild West” run by nameless and faceless people. That was kind of the allure. It was anti-government, anti-oversight and anti-control. However, that type of mentality created an environment of illicit activity, scammers, and the rich getting richer and controlling the market. And while the industry is working hard for transparency and regulation, I feel it is important to get some of the ‘bad players’ out now before the market turns.
What does all this mean? While we are in the midst, and hopefully tail-end, of the bear market, we are seeing a great deal of large/ institutional investment from financial institutions, big corporations and even countries. And as a traditional matter of discourse, these investment groups don’t want to be manipulated, cheated or stolen from. So, in many ways, it is the ideal time to alleviate the bad seeds, implement controls and oversight, and create a safer, more transparent environment.
Will everyone like this? Of course not, but we need a more level playing field, where corruption and greed isn’t king. Let’s get to a place where those looking at the industry from the outside are just as excited as those of us working on the inside. I believe we are on the right path for this to occur. As always, do your own research, practice due diligence, and focus on organizations that are led by teams of proven and transparent professionals.