FTX, formerly a prominent cryptocurrency exchange, abruptly collapsed. Mismanagement and alleged fraud caused the platform to collapse, losing billions in investor funds nearly instantly. It wasn’t the first time such chaos unfolded. In 2014, an attacker hacked the Mt. Gox bitcoin exchange, the largest one at the time, and stole 850,000 bitcoins— an amount that has hardly been stolen since that time. In 2022, the Terra/LUNA crash showed us the dangers of algorithmic stablecoins. The destruction of the damaged peg caused a billion-dollar disaster and was a six-figure loss concerning dollars.
Scams often lack oversight, risk management, or false inspection, due to which they become fraudulent. Amid the regulatory push, there are worries that over-regulation may choke innovation.
Currently, the crypto world continues to present both advantages and disadvantages. While its potential is undeniable, so are the risks. Investors need to stay informed and cautious. PARAPHRASE THIS: The big question is whether the industry will clean up its act or continue down a path marred by scandal. 20 WORDS A balance between promoting innovation and ensuring accountability could save decentralized finance. Will we rebuild trust, or will we face more storms? Only time will tell.
