Ethereum creator reacts to FTX case


The collapse of the FTX cryptocurrency exchange is a real earthquake for the industry. But while some are still wondering how come we didn’t anticipate anything, others prefer to learn from recent events.

And for Vitalik Buterin, the founder of the Ethereum blockchain, it is above all proof of the failure of the centralized model for cryptocurrencies (the fact that assets are centralized with giants in this industry). Quoted in a recent Bloomberg article, Buterin reacts: “What happened at FTX was of course a huge tragedy.”

But according to him, the fall of FTX is also a validation, from many members of the Ethereum community, of a thought: everything centralized is “suspicious by default”.

Note also that a week ago, an article by Cointelegraph mentioned the equivalent of 3 billion dollars in Bitcoin which would have left cryptocurrency exchanges. It would seem that, fearing a “contagion” following the FTX fall (that other platforms will be dragged into this fall), many investors have chosen to take their cryptos off the exchanges.

Ledger keys ahead?

In any case, a trend towards more decentralization on the crypto ecosystem would automatically increase the use of decentralized solutions, including keys from the French company Ledger. Moreover, on November 10, the company even experienced a server failure, due to too many users.

Pascal Gauthier, the CEO of Ledger, also criticizes the centralization of cryptocurrencies on exchanges. “#Crypto was invented to be #decentralized and #transparent, not to rely on centralized entities prone to mismanagement or hacking,” he recalls in a post.

In another tweet, he invited investors to secure their assets on Ledger keys.

As a reminder, there are several ways to store cryptocurrencies. You can use a piece of paper, you can trust exchanges, or you can opt for storage solutions such as Ledger keys.

Custodial or non-custodial

In any case, these opinions are shared by whistleblower Edward Snowden. In a tweet, he declared that the so-called “custodial” exchanges were a mistake.

As we explained in our FAQ cryptos, “The difference with a “custodial” wallet is that on one you leave a service provider in possession of your private key (custodial) and on the other, you fully manage its access ( non-custodial).”

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