Crypto exchange giant Coinbase is revealing the amount of Bitcoin (BTC) in its reserves in a bid to be more transparent following the downfall of collapsed rival FTX. In a series of tweets, Coinbase CEO Brian Armstrong says the largest US-based crypto exchange platform holds about 2 million BTC, which translates to $33.12 billion at […]
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A deep-pocketed Ethereum (ETH) whale is suddenly moving hundreds of millions of dollars worth of the top altcoin to an unknown wallet. According to whale-surveying platform Whale Alert, the high-net-worth trader moved 247,979 ETH worth about $280,000,000 at time of writing from one unknown wallet to another. Recently, whale and shark activity centered around the […]
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Ethereum co-founder Vitalik Buterin says many people in the Ethereum community see the FTX collapse “as a validation of things they believed in all along: centralized anything is by default suspect.” However, he warned that automatically downgrading every single thing former FTX CEO Sam Bankman-Fried believed in “is an error.” Vitalik Buterin on FTX Meltdown […]
CEOs from two of the biggest crypto firms in the world are giving a nod of approval to Ethereum (ETH) creator Vitalik Buterin’s idea for how exchanges can maintain transparency for their customers. After the collapse of FTX and the revelations that came with it, scrutiny over the reserve systems of crypto exchanges circulated, prompting […]
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Ethereum co-founder Vitalik Buterin said the collapse of FTX has illustrated once again that the problem lies in people, not technology.
Ethereum co-founder Vitalik Buterin has spoken out in the wake of the FTX collapse, offering his thoughts and some positives from one of crypto’s biggest black swan events.
In a Nov. 20 Bloomberg interview, Buterin said that the collapse of FTX contains lessons for the entire crypto ecosystem.
He acknowledged that the underlying stability of distributed ledger and the technology powering the crypto asset economy has not come into question. The problem in this instance (and several before it) has been people, not technology.
Buterin also labeled the FTX collapse as a “huge tragedy” but added that it reaffirms the position of many in the Ethereum community concerning centralization:
“That said, many in the Ethereum community also see the situation as a validation of things they believed in all along: centralized anything is by default suspect.”
He added that this ethos includes trusting in open and transparent code above humans. Over the weekend, Buterin posted a guide to having a “safe CEX” with proof of insolvency.
He said rather than relying solely on “fiat methods” such as government licenses, auditors, corporate governance, and background investigations of people running exchanges, the exchanges could create “cryptographic proofs that show that the funds they hold on-chain are enough to cover their liabilities to their users.”
Having a safe CEX: proof of solvency and beyondhttps://t.co/AKEweYZfj2
— vitalik.eth (@VitalikButerin) November 19, 2022
Big thanks to @balajis and staff from @coinbase @binance @krakenfx for discussion!
The problems for FTX are understood to have stemmed from the exchange’s use of customer deposits for other purposes. After a large influx of withdrawal requests came to the exchange earlier this month, it found itself unable to meet withdrawal demand with its current liquidity.
Related: FTX fiasco means coming consequences for crypto in Washington DC
Vitalik Buterin is not the only industry leader recently speaking out about the FTX fallout. On Nov. 17, Binance CEO Changpeng Zhao said that while regulation is necessary, it is more important for industry players to lead by example.
During the Indonesia Fintech Summit 2022, Zhao said the entire FTX saga is likely to have set back the crypto industry by “a few years,” and will likely see regulators scrutinize the industry “much, much harder, which is probably a good thing, to be honest.”
While acknowledging the damage caused by FTX, Buterin believes that FTX CEO Sam Bankman-Fried, as a person, deserves love.
The sudden fall of FTX revealed the need for fresh reforms aimed at protecting investor funds against manipulation and misdirections. The co-founder of Ethereum, Vitalik Buterin, believes what FTX did was a bigger fraud when compared to the infamous Mt. Gox and Terra (LUNA) collapses.
Buterin believed that people running Mt. Gox and LUNA ecosystems “looked” sketchy and did not try too hard to whitewash themselves enough to change investor perspectives. On the other hand, Buterin said that “FTX was the opposite and did full-on compliance virtue signaling.”
While virtue signaling relates to the practice of publicly demonstrating one’s good character, Binance CEO Changpeng “CZ” Zhao showed disappointment in FTX for misappropriating user funds, which according to him, has set the industry a few years back in terms of regulatory acceptance and mainstream adoption.
Considering the negative impact caused by FTX’s wrongdoing, Buterin spoke against FTX CEO Sam Bankman-Fried:
“SBF, the public figure deserves, what it's getting and it's even healthy to have a good dunking session to reaffirm important community values.”
However, given their length of acquaintance, Buterin believed that Sam, as a person, deserved love and support, adding that “I hope he has friends and family that can give it to him.”
However, not everybody was willing to cut some slack for the troubled entrepreneur. Dogecoin (DOGE) creator Billy Markus believed that SBF also deserved some jail time — a point of view resonating with small investors who recently lost their funds.
Related: Sam Bankman-Fried is ‘under supervision’ in Bahamas, looking to flee to Dubai
To avoid an FTX-like situation from happening, the crypto community has proactively begun cross-checking the cold storage funds and has started demanding clarifications for the on-chain anomalies.
Most recently, the community questioned Crypto.com’s intent with transferring 320,000 ETH from an in-house cold wallet to Gate.io. However, Crypto.com CEO Kris Marszalek clarified that the funds were accidentally sent to a whitelisted address on Gate.io that was owned by Crypto.com.
“If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away,” warned CZ.
Contrary to popular belief, Ethereum (ETH) inventor Vitalik Buterin says that crypto doesn’t necessarily need institutional adoption just yet. With many in the space hoping for institutional adoption, the crypto pioneer tells his 4.6 million Twitter followers that it may be better to let the industry mature more first. Buterin says he’s even glad that […]
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Sharing his opinion around crypto regulations, Buterin spoke against the regulations that have an impact on the inner workings of a crypto ecosystem.
The co-founder of Ethereum (ETH), Vitalik Buterin, believes that the crypto ecosystem needs to mature and be in tune with the regulatory policies that allow crypto projects to operate internally freely.
Sharing his opinion around crypto regulations, Buterin spoke against the regulations that have an impact on the inner workings of a crypto ecosystem.
Considering the current circumstances, he believed it was better to have regulations that allow inner independence to crypto projects, even if it hampers mainstream adoption. Buterin opined:
“I'm actually kinda happy a lot of the exchange-traded funds (ETFs) are getting delayed. The ecosystem needs time to mature before we get even more attention.”
The use of know-your-customer (KYC) on decentralized finance (DeFi) frontends was another concern pointed out by Buterin. However, he highlighted the need for KYC on crypto exchanges, which has seen wide-scale implementations. According to the entrepreneur:
“It (KYC on DeFi frontends) would annoy users but do nothing against hackers. Hackers write custom code to interact with contracts already.”
In this regard, Buterin made three recommendations, as shown below.
On an end note, Buterin recommended using zero-knowledge proofs to meet regulatory requirements while preserving users' privacy, stating that “I would love to see rules written in such a way that requirements can be satisfied by zero knowledge proofs as much as possible.”
Related: The Merge brings down Ethereum’s network power consumption by over 99.9%
Google recently added a search feature that allows users to view ETH wallet balances by searching their addresses.
Acknowledging the recent Ethereum Merge upgrade, Google embedded a countdown ticker dedicated to Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism.
Ethereum (ETH) developers hope to accomplish four key goals next year, according to the project’s co-creator, Vitalik Buterin. Buterin says in a new interview with Bankless that solving scalability is their “number one” priority. “The fees have been low for the past six months, so it’s a bit easier to kind of backburner the problem, […]
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