There’s no two ways about it, 2022 is a rough year for crypto markets and blockchain startups everywhere. The spectacular collapse of the LUNA/Terra ecosystem, followed closely by the downfall of Voyager, Celsius and 3AC was just a taste of things to come. While the true believer in crypto remained steadfast in their convictions, many investors started losing faith in the industry.
It suddenly became clear that most of the top players in the sector are interdependent and when one of them falls, others would surely follow.
The domino effect of faux-decentralization
Roughly six months later, we are witnessing a painfully similar situation, this time with the FTX debacle. The popular centralized exchange was among the world’s top 3 but that didn’t make FTX bulletproof. Sam Bankman-Fried made a serious error in creating reserves with the exchange’s own token, FTT.