- All the failed crypto businesses this year were centralized.
- LUNA/Terra was the year’s first cryptocurrency to crash.
- FTX was the most centralized and full of lies.
The cryptocurrency community has plenty of valid questions and worries after this year’s cryptocurrency implosions. However, the fundamental question remains: “What caused these implosions?” In addition to the poor macroeconomic situation, all of the unsuccessful cryptocurrency businesses were centralized.
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According to a Redditor, all the crypto companies that failed were not exactly crypto. “They were all centralized and that was the reason they collapsed.” His research indicates that centralized players killed themselves most frequently this year. This is excellent since the crypto playing field is currently being cleared. Additionally, real crypto underlying principles have not been altered at all.
For instance, LUNA/Terra was the year’s first cryptocurrency to crash this year. The Redditor claims that there are other factors that contributed to the collapse. Do Kwon and other executives’ poor performance was however the main one. They were simply cashing out on the UST that was being created out of thin air. It was a big, concentrated crypto Ponzi scheme run by a few individuals.
The LUNA implosion led to the bankruptcy of 3AC, a cryptocurrency hedge fund. This occurred as a result of their obvious over-exposure and the continued fabrications by some of its former founders, such as Kyle Davies. Additionally, most of the other participants that were affected by LUNA, including BlockFi, had some centralized elements at work.
Finally, there was FTX which is the most centralized and full of lies according to the user. SBF and Co were using all of the user funds to either lobby at the White House for themselves or buy penthouses.
However, other crypto enthusiasts still think that without centralized entities, the value for 99.9% of coins would be 0. Their value is completely derived from wash trading and speculation. According to him, the value of the other 1% would be worth a mere fraction of what they’re trading for now.
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