The FTX saga has revealed an intrinsic problem with cryptocurrency that was bigger than Sam Bankman-Fried or any of his underlings. What FTX was found guilty of is par for the course in the cryptocurrency world, as an entity build on imaginary tokens it produced itself. This problem does not end with FTX, and it may indeed be the fatal flaw that lies at the heart of all cryptocurrency ventures.
While Sam Bankman-Fried's mistakes have cast a shadow over the crypto world, the fact is that too much regulation, not a lack of it, made this possible. By keeping centralized deposits, FTX was tempted to skim off the money of customers. The blockchain allows decentralized exchanges that use "smart contracts" to have every cent accounted for. What brought down FTX was a flaw in humanity, not cryptocurrency itself.
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