You'd think there would be enough controls in place to not allow a couple hundred million to go missing, even if there was a "hack" on one employee's computer.
It has been widely recognized by nearly every technical person that understands blockchain that basically all crypto work going on in the last few years is a scam. Absolutely none of the purported benefits of crypto have come to be realized, and all the criticism and concerns have. In the early crypto era there was a lot of optimism, but I don't know anyone who seriously understands the area (including most of the biggest early enthusiasts) who hasn't been screaming that the entire space is a scam for years now.
So the revelation that SBF and FTX where engaged in fraud is only slightly interesting, since it was obviously that some degree of fraud had to be happening since the entire space is a scam.
I find it slightly confusing that the entire space hasn't completely collapse by now. But it's only a matter of time until it's announced that Crypto.com is engaged in some kind of fraud, that binance is engaged in fraud, and eventually that Coinbase is engaging in some type of fraud. It's not possible that this is not happening since the underlying product that all of these companies are focused on is fundamentally a ponzi scheme and this has been widely understood for many years now.
Nice to meet you. I am someone who understands the area that recognizes that there is a lot of fraud happening at centralized companies riding on the coattails of blockchain technology’s novelty. Despite that, I still have faith in the underlying technology and can think of several applications that are useful and nothing to do with Ponzi schemes.
The underlying technology still makes me just as optimistic as it did ten years ago.
Blockchain is a system that is no different from the pyramid scheme that has existed for people for 100 years. invest your money. wait for other people to invest money and get rich. Who cares about blockchain technology?
That's cryptocurrency. There are some other applications of blockchain, usually centred around recording non-cryptocurrency transactions (transfer of ownership of diamonds being the best known example), or smart contracts for things like flood insurance where the activating event for the policy can be taken from a mutually trusted sourec. I think that most of them are inferior to traditional ways of reaching the objective, but they are not open to Ponzi schemes.