While many people are talking about the fallout of the worst scandal in crypto’s history, there are some experts who believe that this is not a catastrophe.
Specialists involved in the crypto industry argue that this had to happen to reveal that the industry needs more regulations and scrutiny. Voluntary audits and regular communications with official authorities must be a standard.
How SBF broke the status quo
The poster boy for the crypto industry crossed many people who are respected in the domain. The infamous clash between Binance and FTX was something that rubbed many investors the wrong way.
Friedman always looked like a guy who wanted to work with tradfi and get money from people who do not understand much about crypto.
The vast majority of investors were conventionally trained managers and financiers who did not see the true potential of crypto and instead of focusing on the technology.
These were easily excited by empty promises made by SBF during seed investment rounds and many meetings where he played League of Legends in low ranks.
He was facilitating the image of a crypto developer and an entrepreneur without any real responsibility or integrity. It was not a good image despite what many people were convinced in.
Smart people in the industry were building slowly and making profitable decisions instead of walking around begging for money and promising outlandish year-to-year earnings to small-time investors.
Companies that have a product will shine
Now, many companies will be reduced to rubble just because many of them have close ties to FTX and will be subjected to scrutiny and inspections revealing fatal issues.
However, companies that are focused on developing products and improving the world of DeFi will not only survive but receive a massive boost.
We saw how investors flocked to decentralized exchanges like GMX. People will simply stop blindly believing people who promise “unobtanium” and steal money from customers.
Companies that actually make the foundation of the crypto industry will start receiving all the attention making major coins the main driving force of the domain once again.