FTX is not the first nor last but a recent and enormous implosion in the cryptocurrency industry. Previously we have seen examples parade by of external theft, internal theft, anti-money laundering failures, cybercrime enablement, loss of cryptographic keys and skewed investor playing fields. More will come, and we should reevaluate whether crypto investment is a helpful development or a zero-sum game where hucksters, charlatans and the lucky can make money at the expense of others. The management and regulation of banks and investment houses have evolved over hundreds of years. It will never be perfect, but we have rules and controls to protect against bank robbery, embezzlement, failure, and even losing keys to the bank or vault. Basic protections have not been implemented by many crypto organizations. Early humans traded and stored value without any currency, including through barter and other methods. People gave and received value informally, each performing tasks to benefit another person or the community. Commodity money, such as gold and salt, became useful where direct barter was inconvenient or impossible, and facilitated payments, trade, and value storage.
Full opinion : Cryptocurrency past is prologue: before and after FTX.
