Crypto must avoid FTX 2.0 in the next bull run
FTX's collapse resulted in a loss of over $200 billion in the crypto market and damaged public trust, highlighting the risks of unchecked ambition and poor governance. The industry has a history of similar failures, such as the Mt. Gox breach and the ICO crash. Future regulations from the SEC and other global bodies are anticipated, emphasizing the need for improved accountability and transparency in crypto projects. Establishing robust governance structures and regular financial reporting should become standard practices. The over-centralization of power in figures like Sam Bankman-Fried exemplifies the dangers of "main character syndrome." Reliance on celebrity endorsements, as seen with FTX's high-profile promoters, misled investors and inflated expectations. Moving forward, the industry must prioritize responsible leadership and marketing practices to avoid repeating past mistakes.
