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Dragonfly Partner: What the demise of FTX means for the crypto world

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"Crypto gives us freedom. That's why we're still here."

Dragonfly partner Haseeb

Kxp, BlockBeats

The FTX explosion caused turmoil throughout the industry, with ripples rippling through the industry. Crypto everyone in the world. Dragonfly partner Haseeb made a personal social media post about restoring confidence in the industry, which BlockBeats translated as follows:

If you've lost a lot of money because of FTX, I'm really sorry for you. I promise you, everything's gonna be okay. After going through this incident, I feel very tired, and I also start to think about where this will go and what impact it will have on the whole industry.

First, there will certainly be tighter regulation globally. The failure of FTX would not only have affected the US market, but would have caused a global catastrophe far worse than 3AC or Terra. That is because, unlike fraudulent lenders or gamblers, Sam is the cream of the crop.

Second, the worse is yet to come. We do not yet know many of the entanglements involved in FTX/Alameda, and the indirect effects are yet to be felt. People tend to announce the good stuff first and then reveal the bad news when it's too late. It was six months after Bear Stens' collapse before Lehman Brothers finally declared bankruptcy. So we should all manage our risks and make sure we are ready for whatever comes our way. For the next few days, survival is our top priority.

In addition, the media will begin a long and sensational public trial of FTX, Alameda and Sam's inner associates. Quirks or oddities that were once hailed as the hallmark of genius will soon be recast as Elizabeth Holmes-like pathologies. We'll see constant reporting, detailing who knew what, what the money was spent on, who made the decisions and so on. But none of this matters. What we need to know is how the system works and be more cautious about what we do in the future, but that's all we can do.

These reports are bound to set off an orgy of public shaming, but we can't pay attention to them because it's shameful to enjoy them. Not only that, but it can distract us from the important work at hand.

After this incident, many people will surely say that the Crypto is full of liars and artists who only talk nonsense, and no one can be trusted. As far as I'm concerned, these people are all lip service and nonsense. Moreover, we should also strengthen supervision according to the existing TradFi framework. Exchanges/intermediaries should be regulated so they can no longer engage in illegal activities.

But it all adds up to a DeFi that not only runs flawlessly but is completely open and transparent. This is because none of these types of fraud are possible in DeFi. Uniswap, MakerDAO, and Compound all worked well, processing every transaction and withdrawal. Because they are specified in the code, they cannot deceive anyone. Hence Crypto's motto: Don't believe, verify; Don't trust the humans, trust the code.

That distinction will be lost in the commotion. If no one else will tell the story, then we will tell it. The Crypto that we're building is huge, and it's not just about technology, it's about faith. The core mistake of all religions is to treat people as objects of worship, which is vividly reflected in Sam's case. This reminds me of Satoshi Nakamoto, who has remained anonymous throughout. That's because he knows that Crypto is bigger than any one individual.

Crypto gave us freedom, and that's why we're still here. It frees us from the concept of the "other," where we don't have to blindly trust others or be controlled by individuals, dictators, or corrupt financial institutions.

Crypto also frees money from human systems, stupidity and corruption. People tend to make a lot of mistakes along the way. But we always have to be aware of our mission, which is why I came to this field and fought for it.

Although many people feel that money in Crypto is easy to make, in reality it is not. Anyone who's been around long enough will tell you that most people don't make much money. But eventually, if we stick around long enough, Crypto will make us money. So, in Crypto, survival is the first thing. Otherwise, you wouldn't have seen what it would be like.

What I do know for sure is that Crypto will absolutely change the world, it will change the way people and machines interact with money and value. Fifty years later, the Crypto world is bound to change dramatically. So whether you're a builder, developer, collector, or just a hobbyist, keep up your work. Crypto won't stop just because of this one incident. We'll just move on.