A ‘false messiah’ captivated crypto, Jump’s Kariya says in FTX tweetstorm
Jump Crypto’s president Kanav Kariya says a “false messiah captivated an audience broader than ever before,” alluding to FTX’s disgraced ex-CEO Sam Bankman-Fried and speaking about the need for better trust layers in crypto.
“FTX’s alleged fraud would have been seen as fraud 100 years ago. The fact that it’s surfaced in an industry predicated on abstracting trust is a cruel trick,” Kariya said in a tweet on Sunday.
Following the collapse of the centralized exchange, there’s now increased collective pressure to build more robust and faster trust layers, the executive argued.
“In an environment of degrading social trust, crypto and abstractions of trust are more relevant than ever,” he added. “The negative consequences of the dissolution of trust bear heavily on our industry, and in my opinion, greatly outweigh the positives. Low trust slows innovation and progress dramatically.”
Kariya noted that, historically, trust has allowed societies and commerce to scale but had a “long, arduous, and subjective process that doesn’t prevent infractions, but rather penalizes them.”
The concept of trustless systems is a bedrock of crypto, meaning systems where participants do not need to know each other or rely on a third party like a government or a bank.
“Can we trust each other? It’s one of the fundamental questions that, after the still unbelievable demise of FTX, our industry is struggling to answer,” Kariya said.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Catarina Moura